Expected Revenues
We expect Inoof revenues to be about 2.5 MM/month (0.25% of online advertisement spending) in 2 years after launch, as follows:
1. Advertisement revenues: With an average of 5 page views/user/day across the various channels (email/web/IM/SMS), 5 advertisement links/page, assuming 1 in 10 targeted advertisements will be clicked, and a reasonably premium rate on the hyper-targeted advertisements for the users’ lists, both for click-throughs (2 cents CPC or CPA) and impressions ($2 CPM), we expect revenues of $1.25 MM/month ($0.7/user/month).
2. Business Intelligence subscription revenue: this is expected to be another major source of revenues. We estimate this at about 0.6 MM/month. This will increase once Inoof achieves a critical mass of users that represents a significant purchasing power.
3. Sales referral commissions (across multiple channels): Based on 2 purchases / user / month via Inoof and an average referral fee of 25 cents, we expect revenues of about $0.4MM/month.
4. Service Auction and Technology license fees from the Inoof platform – This includes technology that enables businesses to sell via the multiple Inoof channels, to access the Business Intelligence data, to integrate their services into Inoof etc. About 0.25MM/month.