These benchmarks can tell you whether your business plan is viable
The ‘other’ 1%
From Things I’ve Learned About How to Build Good Product by Peter Nixey:
1. Golden rule of social: 90% of people consume, 10% of people curate, 1% of people create.
2. Rules of engagement: Registered users / installs — 30% will use it each month, 10% will use it each day, 1% will use it concurrently.
3. Fremium conversion: 1% of your signups will pay (normally 1-5%).
4. Expensive is profitable: “50% of our revenue comes from only 11% of our customers” — Ryan Carson, founder Carsonified and Treehouse.
5. Cheap is expensive: Cheap accounts cost more in support (7x).
6. Advertising revenue: Social network CPM ~$1, Times Newspaper ~$10; $1M / year in revenue = 1bn page views (good luck).
7. Email subscriptions: Open rates = 20-40%, click through rates = 1-5%; 1 sale per 3,000 emails.
8. Churn determines SaaS size:…
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