We have created a mobile application targeted at a specific industry with very high traffic and visibility. We already have orders for more than 10000 installations.
We are close to the completion of development and will be ready for implementation by April 15, 2012.Our application will be placed on custom devices placed in the target industry and it will be used by the consumers on an average for about 6 hours a day thereby creating a very innovative advertising platform with high visibility, targeting and good attention span. By our calculations even if we go by 20% rate of the current on-going advertising rates in the industry, we will be reaching $100 Million plus in revenue in 3 years. The most interesting part is that unlike a service industry based business model the scalability of our revenue model comes at very small costs.
Another advantage is that our revenue model is not manpower or human performance dependent which eliminates the risk of saturating in future or facing traditional challenges of the software industry.
The cash payback period is approximately 3 years as we will be reinvesting about 60-70% of our revenue for the first 2 years into the venture. Our revenue model is advertising which is exponentially proportional to how big our application installation network is. It is very similar to any other format of media where the readership/ distribution / visibility / TRP defines the cost of advertising. Our aim is to do at least 50000 installations in first 3 years and just by looking at our prototype we have received interested applications for over 1000 installations.
We can discuss the cash back period and ROI, etc. in greater details with an investor ready to sign an NDA with us.
Our Development is on the verge of completion and we will be ready to go live sometime in April.
The funding is needed for creating the network of 10000 installations we aim for in the first 6 months and to manage on-going infrastructure and expenses for 1 year.
I have 5 years’ experience in Digital Marketing / Internet / Web & Mobile Application Development. I am the CEO of an organization focussed on providing Technology, Marketing and Design Services to small and medium businesses in India & US.
I will also have first Mover's advantage, which is why I want to move fast and big as the only downside of my business model is that it is easy to replicate for companies who have money to invest and sustain for a few years. Other players are mostly technology players with very little knowledge of advertising and digital marketing industry and there business model is not scalable at all.
Most of the players (only 3 players globally that I have been able to identify till now) have very amateur business models and they are trying to earn revenue by selling the solution they have developed which in any case is a very limited capability solution. What differentiates my business model is that the solution will be given free to the industry players along with the hardware to use it.
The revenues we will generate on the same by advertising make the possible revenue from selling /licensing the solution both negligible and a barrier to growth.
I will be recognized both as the most innovative entrepreneur in today's time and will earn respect for the thought that went into this.
The revenue model is based on advertising, content licensing etc.
Other market players (only 3 players globally that I have been able to identify till now) are trying to base their revenue model by sales of the application licenses which will earn peanuts revenue and you will always have to compete the race of who's providing the best software.
Common problem in today’s software industry, improve quality but reduce prices year or year and INCREASE SALARIES EVERY YEAR which makes the whole traditional method so much more challenging unless you are riding big bucks from a certain investor/s and the profitability comes in 10th year.
The investment will account for 1 year running costs and costs of procuring 10000 devices on which the application will be installed.
I have invested in the development of this solution with my resources and now need an external investor to fund the circulation and growth.
The idea at the same time is to also do a reality check on whether the business model is just a hoax dreamt by me or has the potential to attract seasoned pros with all the capability to analyse a business model and its growth potential.
We are looking for an equity investment and we can offer 15-20%. Indian and international investors can contact us on Merar