Comments on: Number of Users on Each Plan http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan A behind-the-scenes look at selling dropsend.com Wed, 8 Oct 2008 10:26:13 +0000 http://wordpress.org/?v=2.0.2 by: How To Be A Good Product Manager » Blog Archive » How can I buy your product? Let me count the ways http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan#comment-6531 Tue, 12 Dec 2006 13:30:50 +0000 http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan#comment-6531 [...] There are some additional considerations to be aware of. More customers is not always better — serving some customers may actually help you lose money, making it more important to focus on the most profitable customers. Many businesses find that a large part of their revenue comes from a small number of customers. For example, DropSend, a web application allowing people to email large files, reported that 50% of their revenue comes from 11% of their customers. Product managers who understand the economics of their customers will realize that more ways to buy your product does not usually equal more profit. [...] […] There are some additional considerations to be aware of. More customers is not always better — serving some customers may actually help you lose money, making it more important to focus on the most profitable customers. Many businesses find that a large part of their revenue comes from a small number of customers. For example, DropSend, a web application allowing people to email large files, reported that 50% of their revenue comes from 11% of their customers. Product managers who understand the economics of their customers will realize that more ways to buy your product does not usually equal more profit. […]

]]> by: Voodoo Ventures - Idea Fuel Blog » Basecamp vs. Dropsend Valuation Smackdown http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan#comment-5919 Mon, 27 Nov 2006 16:38:29 +0000 http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan#comment-5919 [...] DropSend Metrics: We start by building metrics for DropSend based on the public information on BareNakedApp. We break down revenue contribution for each account type, because this is the assumption that we will have to make for Basecamp. We also will use the percentage of accounts that are paid as a metric. [...] […] DropSend Metrics: We start by building metrics for DropSend based on the public information on BareNakedApp. We break down revenue contribution for each account type, because this is the assumption that we will have to make for Basecamp. We also will use the percentage of accounts that are paid as a metric. […]

]]> by: Blogroll Updated « Andrew Whitehouse’s Weblog http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan#comment-5773 Thu, 23 Nov 2006 07:21:20 +0000 http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan#comment-5773 [...] There are two feeds from Ryan Carson and co. from Carson Systems, namely Bare Naked App and Vitamin. Ryan’s posts on the process of building and latterly negotiating to sell DropSend have been very enlightening, and I’ve been impressed with the way that he has been prepared to share figures that I think other companies would guard jealously. I’ve signed up for the UK Future of Web Apps conference in February. (The podcasts from previous FOWA conferences are highly recommended.) [...] […] There are two feeds from Ryan Carson and co. from Carson Systems, namely Bare Naked App and Vitamin. Ryan’s posts on the process of building and latterly negotiating to sell DropSend have been very enlightening, and I’ve been impressed with the way that he has been prepared to share figures that I think other companies would guard jealously. I’ve signed up for the UK Future of Web Apps conference in February. (The podcasts from previous FOWA conferences are highly recommended.) […]

]]> by: GigaOM » YouSendIt Bigger Than We Thought http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan#comment-5755 Wed, 22 Nov 2006 22:22:31 +0000 http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan#comment-5755 [...] Another competitor, DropSend, has made subscriber and revenue numbers public because creator Carson Systems is selling off the product. They are much smaller. But this is a crowded market, and companies will have to offer more specialized services to get by. For instance, MyFabrik, which launched this week, is focusing on digital media and provides embeddable player widgets (also with 1 GB free). See our previous coverage. VentureBeat reports MyFabrik has raised $12 million in financing. [...] […] Another competitor, DropSend, has made subscriber and revenue numbers public because creator Carson Systems is selling off the product. They are much smaller. But this is a crowded market, and companies will have to offer more specialized services to get by. For instance, MyFabrik, which launched this week, is focusing on digital media and provides embeddable player widgets (also with 1 GB free). See our previous coverage. VentureBeat reports MyFabrik has raised $12 million in financing. […]

]]> by: James Deer http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan#comment-5467 Sat, 18 Nov 2006 19:42:02 +0000 http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan#comment-5467 He has done, many times before, there are a 100 podcasts of him explaining all the nitty gritty costs etc. http://www.thinkvitamin.com He has done, many times before, there are a 100 podcasts of him explaining all the nitty gritty costs etc. http://www.thinkvitamin.com

]]> by: Shai Shefer http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan#comment-5279 Tue, 14 Nov 2006 18:30:58 +0000 http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan#comment-5279 Ryan, Thanks for all the stats, really interesting stuff. As some others have posted, would you be willing to post some costing information? Things such as: 1. App development time and costs prior to go live 2. Cost changes during operations I think it would be informative to see the costs related to developing an app in addition to the rewards attainable if you have a hit. Keep up the great work. Ryan,

Thanks for all the stats, really interesting stuff.

As some others have posted, would you be willing to post some costing information? Things such as:
1. App development time and costs prior to go live
2. Cost changes during operations

I think it would be informative to see the costs related to developing an app in addition to the rewards attainable if you have a hit. Keep up the great work.

]]> by: Jim Hickstein http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan#comment-5243 Tue, 14 Nov 2006 01:20:40 +0000 http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan#comment-5243 Well, OK not "nothing" about costs, but it's not clear about capital. Also, how long do the files stick around, for free and for paying customers? If paying customers demand more space and this is created by deleting free-customer files earlier, how early can it go? Ultimately, what did you have to risk before you knew whether this would work? Well, OK not “nothing” about costs, but it’s not clear about capital. Also, how long do the files stick around, for free and for paying customers? If paying customers demand more space and this is created by deleting free-customer files earlier, how early can it go? Ultimately, what did you have to risk before you knew whether this would work?

]]> by: Jim Hickstein http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan#comment-5239 Mon, 13 Nov 2006 21:17:46 +0000 http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan#comment-5239 There is nothing in the numbers so far about your costs, especially to serve the >99% of your non-paying customers. Can you say something about how much capital is tied up in providing the service? I know that the cost of storage itself is not the whole of this, but I suppose it's a larger part in your case than for some others. How about bandwidth, if the focus is on very large files? And do you sense that you are reaching only users who have significant upload bandwidth on their end? After all, the dialup user might choose to cut a CD and mail it, not because their email server refuses to transmit a large file but because they don't have the patience. Can you say something about this factor? There is nothing in the numbers so far about your costs, especially to serve the >99% of your non-paying customers. Can you say something about how much capital is tied up in providing the service? I know that the cost of storage itself is not the whole of this, but I suppose it’s a larger part in your case than for some others. How about bandwidth, if the focus is on very large files?

And do you sense that you are reaching only users who have significant upload bandwidth on their end? After all, the dialup user might choose to cut a CD and mail it, not because their email server refuses to transmit a large file but because they don’t have the patience. Can you say something about this factor?

]]> by: dan http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan#comment-5197 Mon, 13 Nov 2006 08:26:46 +0000 http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan#comment-5197 What do you use to build these shiny charts? What do you use to build these shiny charts?

]]> by: Richard Bundock http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan#comment-5157 Sat, 11 Nov 2006 20:24:50 +0000 http://www.barenakedapp.com/dropsend/number-of-users-on-each-plan#comment-5157 Ryan I have to say that as someone who is running a busy, but not yet profitable, webapp -- your an inspiration. Please keep up the open, honest and transparent way you work. Its really refreshing. Best of luck Ryan

I have to say that as someone who is running a busy, but not yet profitable, webapp — your an inspiration. Please keep up the open, honest and transparent way you work. Its really refreshing.

Best of luck

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