We have discussed some of these ideas on venturewoods before, but I thought I would get more specific thoughts. We are seeing more and more businesses around the theme to offer a $100 a year service to a million users. Few ideas that have got discussed here include:
1. Online DVD rentals
2. Online photo printing
3. Online tutoring (export oriented – ok more like 100k x $1000 here)
What are the views around feasibility and scale on some of these? Will these land up being more like 100k x $ 30 plans in the online context? Given that 5-10 startups are starting out at the same time, will the market fragmentation be too high?
Any other ideas that might fall in this conceptual framework?
Latest posts by Alok Mittal (see all)
- Promoters or Entrepreneurs – A choice for Private Equity players - August 3, 2019
- Startup Marathon Mindset - March 25, 2019
- What’s your Customer Culture? - March 4, 2019
Couple of other ideas that might fall in this conceptual framework
– Online Gifting Service
– Stock Recommendation Service (Similar to fool.com)
Crowded space?
Well while it is true that the Indian market is smaller than the US, its still large and growing fast. How many TV channels? FM Radio? How many matrimonial sites? Mobile companies? Pizza Delivery? Gellato palours? Newspapers?
So you won’t get to $100M in Y1, but possibly in Y3…I would take a punt on a good team
Alok,
I expect export-based online tutoring to be a $1000 * 50K a year business in FY5. Why do I say that?
Rough estimates –
– avg pricing of $100 per month for 10 months.
– 3 markets (e.g US, UK, SEA). Starting with 1000 students, y-o-y growth of 100% will lead to about 50K students in 5 years.
Fragmentation – yes it is possible to start with but consolidation expected as soon as brand name and quality of teacher network gets established for the top 2-3 players.
Hi
I am sceptical of the DVD rental business because of piracy and pricing issues.
Online photo printing: Can’t see much value in this business.
Online tutoring seems to be quite an opportunity (there are a few export-oriented companies here in Chennai that are thriving on it). $100 m? I don’t know.
The sucess will depend on the produt being offered…
DVDs yes can happen…maybe 1 million @ $100 in Bombay alone…Shemaroo charges Rs. 7000 for 70 rentals paid upfront…no expiry date.
Online Photos printing – my prediction, will not take off
Online Tutoring – I really don’t know here
Where it might work better is with travel websites: $100 for lets say “unlimited free delivery of tickets”, so not only does it get in revenue for the travel guys but keeps people loyal. The Taj does this succesfully with Innercircle, I know they have 100K plus in Bombay at $175 a head…