Internet Business Financial Model SIBM - Spartina
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The revenue forecasting is a function of how the traffic converts to various monetization activities, such as a user clicking on a Google Adsense ad placement or buying a subscription. We believe all Internet businesses should look at their total revenue divided by their total visitors to derive a Revenue per Visitor (RPV). Your mission is to grow traffic and optimize conversion to increase RPV.
The cost structure of an Internet business is also unique. You have many advantages: the company can be virtual to start. You may “only need a Macbook,” as the ad says, to start it. Development costs are low with advanced software development environments (Ruby on Rails) and open source tools ready for off the shelf integration. You should be employee efficient, since the technology that you build to run the website can be leveraged for use by any human resources.
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