Charging for Your Product is About 2000 Times More Effective than Relying on Ad Revenue by Bob Warfield.
From the post:
I was reading Gabriel Weinberg’s piece on the depressing math behind consumer-facing apps. He’s talking about conversion rates for folks to actually use such apps and I got to thinking about the additional conversion rate of an ad-based revenue model since he refers to the Facebooks and Twitters of the world. Just for grins, I put together a comparison between the numbers Gabriel uses and the numbers from my bootstrapped company, CNCCookbook. The difference is stark:
Ad-Based Revenue Model CNCCookbook Selling a B2B and B2C Product Conversion from impression to user 5% Conversion to Trial from Visitor 0.50% Add clickthrough rate 0.10% Trial Purchase Rate 13% Clickthrough Revenue $ 1.00 Avg Order Size $ 152.03 Value of an impression $ 0.00005 $ 0.10 = 1,976.35 times better
Apologies, the table doesn’t display very well but its point is clear.
I mention this to ask:
What topic map product are you charging for?