Bsys 2050 Team Business Model – JohnChow

Thursday, March 11th, 2010

We have completed the John Chow Business Model and I learned that starting up a website does not require a lot of expenses while the revenue can be as high as half a million.   (Of course, that is if the website is well established and has a large amount of subscribers.)  For the project I took part in setting up the What-if model.  Because we did not have a lot of numbers to work with so consequently we had to make a lot of assumptions.  The biggest assumption made was the  allocation of visitors from the Paid Traffic and the Organic traffic entering the Sales funnel, because the number of people entering that stage would directly affect the revenue made.  On top of that, we also had to make assumptions about number of Ad_clicks so that we can account for the cost per click (which we said it would be $0.20 that John has to pay out everytime someone clicks on an ad).  Having said, there was a lot learnt from this project and it was a great experience.

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