1 david sánchez 24symbols

24symbols is a platform to read digital books on the Internet

24s = cloud + social + freemium

No file download needed, your readings go with you

On the cloud

Enriched and shared reading experience

Social

Freemium

! Free: ability to read ebooks, free and with non-intrusive ads.

! Premium: ability to read ebooks, ad-free, even without Internet connection. Price by subscription.

! Affiliation: we redirect traffic to your site or wherever you sell your printed books.

Product

Income model

! 24symbols income is based on advertising and subscriptions.

! 70 % of this revenue is shared equally among the total number of pages read.

Publisher’s Income

70% Total Income Publisher's Pages Read

Total Pages Read = x

Why 24S

+Income

+Marketing

+no downloads

+no exclusivity

+recommendation

+SEO +virality

+statistics

+proved business model

+sales (printed books)

+Control +flexibility (catalog)

+audited

! Combination of a free basic service with an advanced service based on a periodic subscription.

! Free service permits to easily get a huge number of users (no barrier of entry). •  Income source (ad-supported).

! No barrier of entry + high-quality service + interesting conversion factors = premium users •  Main income source.

A Freemium Model for Books

Free / Premium

time

users

Delayed subscription (test the service & engage)

free

premium

Conversion Rate

How to get users

Direct SEO SEM SMM Mobile Emailing MGM

! User generation rate will vary according to: •  marketing campaigns, •  product (new features & apps. for specific devices), •  tablet/device penetration, •  catalog…

! … but it will spontaneously speed up if the number of users reaches a critical mass.

! Typical purchase funnel, but with a delayed behaviour. •  Conversion requires enough time to test & engage.

! Why to subscribe: •  Offline reading + Extended catalog + Ad-free + Other features.

How to get premium users

Visits

Registered Users

Premium

Time

! Income = Ads (20%) + Subscriptions (80%). •  Ads are not so efficient as an income source…

! Income distributed to publishers according to the number of pageviews of each title.

➤ Pageview as the consume measurement unit in 24S.

How Pageview Price is determined

Pageview Price

70% Total Income

Total Pages Read =

How Pageview Price is related to Conversion Rate

Conversion Rate Goal: 10%

Pageview Price Pageview Price

! Freemium models need time to get: •  Critical mass (enough number of readers), •  and a profitable pageview price (enough premium users).

! Initially focused on registered users, gradually shift to focus on conversion rate. •  Detailed monitoring of subscription patterns (profile, speed)

to make business decisions that optimize it: ➤  Prices / Offers. ➤  Service differentiation for subscribers. ➤  New limitations for free users…

! Free service is still strategically interesting to get new users (eventually new subscribers).

How to manage a profitable Conversion Rate

time

users

better Conversion Rate!

registered

subscribers

How to manage a profitable Conversion Rate (II)

+ limitations for free users

+ value for subscribers

Premium Users

Premium + Free Users Conversion Rate =

! “Ads are never a relevant income source”. •  Right… but freemium models are built to be profitable with

subscriptions, not ads (just to monetize free users).

! “It is more profitable to have 100K premium users than 22M free users” •  Right… but free access is the only fast way to substantially

increase the number of users, that eventually will subscribe. •  In other words, it is more likely to get 100K premium users with

a freemium approach than without.

Typical misunderstandings

! “You don´t guarantee a minimum pageview price” •  Right… things need time to work out. Not much. •  Title discoverability increases from the first day. •  Backlist titles get a new income source. •  Bestselling titles can be initially limited to subscribers,

24symbols as an online marketing channel.

Typical misunderstandings (II)

Thank you

David Sánchez: Co-founder [email protected] @davidsanchez71 www.24symbols.com