Here’s the first of a few posts including my notes and some from the Twitter stream (thanks to all who contributed tweets) from today’s AIMIA Victoria Conference “Meet the New Generation Digital Business Models“.
This first session was entitled “Show Me the Money“
Martin Hosking – Red Bubble
We wanted to establish an ecommerce company that would grow as a social network (the combination of these two variables at present a conundrum in internet business models).
Is it making money? Yes it is making money – because we don’t have to spend anything on marketing.
10 years ago red bubble couldn’t have worked because of the cost of data heavily reduced.
More people view art at redbubble (2mil/mth) than all Oz art galleries combined
Launching a global company from Australia – it’s not as easy as expected. There’s no Australian companies in the top 500 Internet companies which is an indictment on our nation.
Tips: Need to provide compelling reason for people to be at your site. Our customers are coming back from the community, to sell their artwork online…
When I review many business plans, I consider who is the customer and as the customer, am I really gaining? Is there really a compelling need for me? Is there the needs, desires, and enough money for to pursue the opportunity?
Helps if your 1st customer is yourself: at least you have some insight into wants/needs
In Australia we can’t fund Twitter or Facebooks – they need to have good, underlying business models. The Australian VC or Business Angel community don’t support these – for good reason. Hence you need to consider not only customer needs but the economies underlying it – think of both areas – how are you going to fund it?
I think of Social Media as marketing. It’s about how you make it relevant around certain things – e.g. Woolworths – how do you make people interested in who’s buying what at Woolies? Unsure about that… It’s about making it relevant.
Tips: e.g. On RedBubble someone loaded artwork of a flower which went to facebook stream and led to people discussing what flower it was, how to grow it = learning/information/value to people.
Empower the market to do things for you – that’s what redbubble is about
Yes! We’re making money.
We realised that designers were competing against each other and many smart internet people were seeking designers to create logos and designs. We saw this as an opportunity.
You register what you’re after and how much you wish to pay on sitepoint.com
cash flow positive and profitable – $250k with 2 staff – today: 1 mill in revenue and 22 staff
The more designers that interact with the site the more attractive the site is to designers, buyers. We are the platform – so when we do things, we do good things for each of our customer groups.
Arbitrage opportunity in the past owing to cost base being largely Australian dollars vs US$ (not now owing to the US$). Now we have more people in the US = 5 people (was 1 person a year ago) Australian businesses not as good ‘marketers’ as we should be.
Q&A: Did you have unsuccessful business models at sitepoint?
Main revenue 10 years was advertising then it wasn’t there any more! We tried a lot of different things quickly. We noticed traffic for particular article so we asked that person to quick writing articles – loads of traffic – then had him write a book – so we became a publisher. So we got into eBooks which
I hope you enjoyed these notes – let me know what came up for you in reading – leave a comment!
Happy days to you
Come back again soon! See more of what I do and think via: www.samanthabell.com.au
Program information: http://www.v21.com.au/program/ or tweet stream (today or for the next week) at: http://search.twitter.com/search?q=%23v21
9.10 – 10.10am: Opening Interview “Show Me The Money”