Andy Bovingdon ‘How to generate revenue from a developer program?’ presentation
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Leaders in mobile billing & analytics How to generate revenue from a developer program? Mobile billing advice to maximize revenues for all Andy Bovingdon VP Product Marketing
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Presentation by Andy Bovingdon, VP Product Marketing at Bango, given at Mobile World Congress 2011. Topics covered: Why conversion rates are important * Direct billing * cross operator billing platforms * Payout rates and marketing
Transcript of Andy Bovingdon ‘How to generate revenue from a developer program?’ presentation
Leaders in mobile billing & analytics
How to generate revenue from a developer program?Mobile billing advice to maximize revenues for all
Andy BovingdonVP Product Marketing
The best developer program deliversmaximum earnings for minimum effort
Ways to make money
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Indirect
Advertising
Direct
Payments
AffiliateMarketing
SearchMarketing
Banner Ads
CreditCards
PayPal,Google Checkout, Amazon Payment
OperatorBilling
Mobile billing recommendation #1
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1. Focus on conversion rates– Higher conversion rates mean higher earnings– Give the consumer a clear and simple experience
• Show clear payment terms• Minimize the number of payment steps• Ensure most subscribers can pay with one click
– Operator billing delivers the highest conversions• ~7% is typical credit card conversion rate• ~60% is typical for traditional operator billing
• Example: 1000 customers each buying a $10 item
Why conversion rates are important
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Operator billing60% conversion rate40% fees
Credit cards10% conversion rate2% fees
$980Developer earnings
$3,600Developer earnings
$2,400Biller earnings
$20Biller earnings
Operator billing delivers considerably higher revenues to all
Further boosting conversion rates
• Consistent carrier billing over WiFi– Over 50% of connections are now via WiFi – http://news.bango.com/
• Optimal one-click payment experience – Avoid registration, logins, extra confirmation pages
• Identification and the network effect– Remember people & preferences across merchants
• Failover to credit cards or PayPal– Funds unavailable, monthly or daily limits reached– No identity, operator billing down,
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Mobile billing recommendation #2
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2. Use direct billing – not premium SMS– Direct billing provides
• Immediate response with detailed status• Full granularity of price points• Credit card like capabilities
– Problems with premium SMS include• Delays and message loss• Lack of status• Restricted price points
Mobile billing recommendation #3
3. Keep it simple– Use existing cross operator billing platforms
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Operator 1
Developer
Operator 2
Operator 3
Operator 1
Billing platform (e.g. Bango)
Operator 2
Operator 3
Developer
• Effort per operator• New work each time• Maximum effort
• Single effort• No extra work • Minimum effort
4. Don’t ignore payout rates or marketing– 40% fees are not viable or competitive today– Higher earnings drives increased marketing
Mobile billing recommendation #4
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EarningsMarketing
Sales
5. Information, information, information– Detailed payment reports for revenue & conversions
Mobile billing recommendation #5
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5. Information, information, information– Relate payments to marketing, websites and app use
Mobile billing recommendation #5
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Leaders in mobile billing & analytics
Andy [email protected]
web: bango.comwhite papers: bango.com/wp
twitter: @bangodotcom
Questions?
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