
Last version published: 24/11/2016 09:43
Publication number: ELQ-85571-2
View all versions & Certificate

Internet Business Financial Model SIBM - Spartina
Manage your Cash, Increase Startup Revenue & Grow your Profits
Further information
A
key
differentiator
for
Internet
businesses
is
that
revenues
are
based
on
traffic.
Your
financial
model
must
take
into
account
and
forecast
traffic
accurately.
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.