4 {{ upvoteCount | shortNum }}
4 {{ upvoteCount | shortNum }}

Hybrid Online/offline/app creation question

by Jeremy James
3 replies
Hey guys,

In my local area, there is a website done by a guy who does the hot, recent, breaking news stories. This guy is part ambulance chaser, part National Enquirer, part journalist, and has created quite a site that just about everyone in my area knows about. Because of his local connections to the civil service organizations, he usually gets up to the minute converage and pictures of local news items (rulings, wrecks, accidents, school closings, etc.) If it's hot, he's all over it.

As a result, many people check that site MANY times a day. One of my co-workers lives on that site. Sometimes, there are 5-10 news items a day, sometimes, there are 1-2. However, it's THE place to go for news.

And, he's done it smartly. He has, on average, 15-20 consistent, local advertisers on that site, and while I don't know the specifics, I am assuming he's 'raking it in.'

Well, I had an idea earlier, and wanted to check in with you guys.

First of all, he does NOT have a mobile version of his site. $?

Secondly, I thought about creating an app for his site. We all know that apps are getting ever more popular and profitable (Angry Birds anyone?) Now, my current "metro" area is around 130,000 people, and I dare say that a large (and still growing) number have Smart Phones.

So, I had this idea. How about creating an App version of this site? What it would do is for all that have the app, they get an update on their phone instantly if there is a news report. Or, they can just click on the app, and it gives them a "Mobile Friendly" version of the site.

Anyway, how could I do this where it would be a "win-win" for everyone?

Who knows how App monetization works? Would I just get an outside company to advertise and the ad revenue go to me, or a split of it? (I am assuming that I can approach this website's owner and suggest that we do it and he accepts - at no cost to him."

Do I try to "sell" the app for $.99 cents each?

How could I convince the site owner to let me monetize his site some more?

Thanks.

Now, if there is a local news site in your market, take the idea and run with it. If not, start one! You'll be VERY successful. Partner with local busiensses. Get the word out!

Jeremy
#creation #hybrid #online or offline or app #question
  • Profile picture of the author Warrior Ben
    Hi Jeremy,

    I like how you are thinking on this one. My advice would be to help him set up a mobile version of his site that can be accessed by all types of smartphones. Unfortunately, it probably won't be a huge money maker for you. If he is using WordPress for his site, you can set him up with WPtouch Pro (WPtouch Pro » Premium Mobile iPhone, iPad, Android, Blackberry, and Palm OS Plugin for WordPress » BraveNewCode Inc.) It is a fairly inexpensive WordPress plugin that will mobilize his site.

    As for creating a specific App for his site, I think you might find the numbers to not work out. First, when you create an App (vs. a Mobile Site) you have to create at least 2 versions of the App-- one for iPhones and one for Android. Ideally you will also want to have an app that runs on BlackBerry and Windows phones as well. The cost of creating an App is usually a lot more than creating a website. It will usually start at around $2k and move up from there. For a lot of small business Apps I've seen an average cost of around $5,000.

    So if you need to create two apps that will cost $5,000 each, you are already $10,000 in. If you charge $0.99 cents for the App, you will get to keep about $0.70 paying the App Market fees. That means you will need to sell 14,285 Apps ($10,000 cost / $0.70 revenue) just to break even. You said your city has a population of 130,000 people, so that means over 10% of the entire city will need to buy the App just to break even.

    When you start looking into the number of people who have smartphones, the numbers appear even harder to obtain. Let's say 40% of the population has smartphones. That would be 52,000 people with a smartphone. 14,285 App sales out of a market of 52,000 people is over 27%. So you will need to get 27% of everybody with a smartphone just to break even. That is going to be an extremely difficult number to reach.

    I don't want to come off as shooting holes in your plan, but one of the most important things to do before starting a project is to run the numbers. I've seen people get so excited about a project where they just start and don't really calculate how much money they could make. If they would have done some simple calculations they would have seen from the beginning that it probably wasn't worth doing the project and could have spent their time elsewhere. Don't get me wrong, it's good to take action, but it is important to be smart about this.

    I hope this helps.

    -Ben
    Signature
    The Best of Warrior Ben: My Most Popular Warrior Forum Posts
    {{ DiscussionBoard.errors[5078591].message }}
  • Profile picture of the author Aaron Doud
    Honestly for the reasons Ben mentioned and a few of my own I do not think I would target this guy. Now he may help drive traffic to sites or such you create like a local directory but the things you can add to his current enterprise are likely not worth enough to you or him. In fact things like a mobile friendly site may just mean you wasted time pitching it for him to go do it himself.

    This is a man making his money off the net. He may know everything you suggest and more already but for various reasons he is not implimenting such ideas.

    I would see this guy as a potential partner or even as a place I would advertise vs. potential client.

    You see his value but I think you see his value in the wrong light. Insteado f trying to find a way to get some of his money think about how you can get more money for both of you. Either via a JV or via you paying advertsing to him to get local trageted traffic.
    Signature
    Aaron Doud - Sales & Success
    {{ DiscussionBoard.errors[5078800].message }}
  • Profile picture of the author Jeremy James
    Thanks for that, friends. I appreciate it. I just was trying to get more "high tech" and "high profit" in this area.

    Jeremy
    Signature

    Have you ever been a ticked off customer? My reports gets you Satisfaction and Resolution! Click HERE to check it out!

    {{ DiscussionBoard.errors[5080204].message }}

Trending Topics