What is the factor for growth now?

Let's say my web app has 10k monthly users and it's for free but it runs ads and the estimated earning would be 0.016$ per monthly user which sums up to be 160$. One part of it goes to Amazon Web Services (60$). What would you do with the remaining 100$? This estimation is completely inaccurate and abstract. As this is my first business, how can I be sure of my actions? I expect for earning to grow proportionally with the user base. Thanks for any advice :).

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Best Answer

You'd pay yourself a minimum wage, and invest the rest. You can invest in either;

Getting more users to raise your revenue

Creating a new way of generating money out of the people that are already subscribed

If you have the luxury of a bit of extra money, save it so you don't go bankrupt if your revenue declines a bit.

Other points

Marketing and/or improving the product based off customer feedback and trying to extract more money out of users with new features or income streams. 10k monthly active users and only $160 of income doesn't sound like a very good return. Try to look for investors soon if you haven't already.

Your gonna need to increase your revenue per user per month. If you can build something that gets 10k users in a reasonable period of time your opportunity cost for working on it is going to be high.

A product that gets that little revenue per month from each user is never really going to be viable I think, at least as anything more than a hobby.

Question asked by

u/Putarda

Date

May 22, 2020, 10:25:19 AM

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