If you have 10 million customers on whom you earn on the average $10 per year you have revenues of $100 million. ( The service could be free for the consumer and paid for by the provider/advertiser. Alternatively it could be a fee paid by the consumer or a combination ). When you think of the Indian market there are large number of individual and business users.
Existing pain points , unmet needs and low service levels provide an interesting context.
The nice thing about these kinds of businesses is that doing an alpha version does not cost much. Building scale is tough and once built the barriers to entry become high. I hope over the next few months I can be an advisor/investor to some entrepreneurial teams who want to build elephants with a high volume low margin strategy.
Over the next few weeks I intend to add comments to this thread based on my experience in building these sorts of businesses. I hope this thread and the comments will help some elephants to emerge.
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What makes an online consumer business attractive in terms of investment at seed/angel level – product, team, market validation ? In terms of market validation – when does a early startup start gaining traction – any parameters at what an investor looks for ?