To build a successful and enduring company, you need more than just hype, publicity, or impressive fundraising skills.
Ultimately it all boils down to one simple principle: you must have a product that solves a pressing problem, and then the right amount of paying customers to make the math work.
Today’s infographic comes to us from Point Nine Capital, and it highlights five basic revenue models that startups can use to achieve $100 million in annual revenue.
The take home message here is that to build a long-term business, a team must implement a realistic strategy that considers multiple factors including product-market fit, user acquisition, pricing, and revenue per user.
Are you hunting flies, or are you trying to hunt elephants?
Just like in real life, these things require very different strategies and tactics. To build a $100 million revenue per year company, you’ll need to have a clear vision of your product-market fit and the customers you’re going after.
While the hunting analogy may be an oversimplification, it does help illustrate an undeniable truth to building large companies: how many users you will need depends on how much revenue you can earn per user.
This has implications.
If you are going to get $10 in annual ad revenue for each user, then you need a lot of users. If you’re going after Fortune 500 companies, you’ll need far fewer customers, but also a sophisticated and detailed sales strategy.
Flies – $10 per user x 10 million customers = $100 million in annual revenue
It takes a lot of flies to add up.
To build a big business with flies, you’ll need a product with a high viral coefficient (Instagram, WhatsApp, etc.) that spreads your brand quickly and inexpensively. Alternatively, you can build a platform that allows for the creation of massive amounts of user generated content (UGC) such as Yelp or Reddit.
Mice – $100 per user x 1 million customers = $100 million in annual revenue
Mice are still pretty small, but the expectations are higher than for flies. To get $100 per user, these customers will have to be directly paying for something, like a $10 monthly subscription. Music-streaming company Spotify is a good example of a startup hunting for mice.
Rabbits – $1k per user x 100k customers = $100 million in annual revenue
Once you hit rabbit territory, we are basically out of reach of B2C customers. That means to get 100k customers, they will likely have to be small businesses.
To do this, you’ll need a fantastic product, excellent inbound marketing, and an extremely high NPS (Net Promoter Score). The latter metric is used to measure the likelihood a customer would recommend you to their peers.
Deer – $10k per user x 10k customers = $100 million in annual revenue
We’re now getting up there in size – which makes it likely that deer have to be medium-sized businesses. These customers can afford to spend $10,000 per year, but expect a significant return on their investment.
While revenue per user is much higher than preceding levels, it is still not likely enough to warrant traditional enterprise field sales.
Elephants – $100k per user x 1k customers = $100 million in annual revenue
Going after elephants is a totally different world, and requires a skilled sales force, patience, and an enterprise-focused approach. You’ll need to educate Fortune 500 companies on why they should spend $100,000 with you each year – and you’ll need to be able to back that all up with a killer product.
Software as a Service (SaaS) companies like Workday or Salesforce often use this kind of strategy, and it allows them to key in on the features that their most important clients want to see. As we noted in a previous infographic, investors love the predictable revenue stemming from a well-positioned SaaS company.
Mapped: The Top Podcasts on Spotify Across Countries
Podcasting is now a billion dollar industry, attracting big names and audiences to match. Here’s a global look at the top podcasts on Spotify.
The Top Spotify Podcast Across Countries
We are amidst the breakout era of podcasts. Since the beginning of the smartphone revolution, the digital audio format has picked up serious traction with audiences all over. In the U.S. alone, it’s estimated that there will be 132 million podcast listeners by 2022.
Today, there are 850,000 active podcasts available in 100 languages, with over 30 million episodes to tap into—perfect if you have an afternoon to yourself.
Worldwide Podcast Chart-Toppers
The data in this infographic comes from Spotify, the top global streaming service in the industry by paid users. How do the top podcasts fare on a per country basis?
|Country||Top Podcast||Honorable Mention (Second Highest)|
|Canada||The Joe Rogan Experience||Call Her Daddy|
|France||Choses a Savoir||Mythes et Legendes|
|UK||The Michelle Obama Podcast||The Joe Rogan Experience|
|Germany||Gemischtes Hack||Fest & Flauschig|
|Italy||Blu Notte - Fisteri Italiani||Mushio Selvaggio|
|U.S.||The Michelle Obama Podcast||Call Her Daddy|
|Australia||From The Newsroom||The Joe Rogan Experience|
|India||The Michelle Obama Podcast||Purijagannadh|
|Ireland||The Joe Rogan Experience||The 2 Johnnies Podcast|
|Mexico||Leyendas Legendarias||La Cotorrisa|
|New Zealand||The Joe Rogan Experience||Call Her Daddy|
|Argentina||Concha Podcast||Entiende Tu Mente|
|Austria||Verbrechen||Fest & Flauschig|
|Brazil||NerdCast||Café da Manha|
|Chile||Tomas Va A Morir||Matriarcalmente Hablando|
|Colombia||DianaUribe.fm||Dani 3Palacios Podcast|
|Denmark||Morkeland||Her Gar Det Godt|
|Norway||Friminutt med Herman og Mikkel||G-punktet|
|Philippines||Sleeping Pill with Inka||Adulting With Joyce Pring|
|Poland||Kryminatorium||Ja I moje przyjaciółki idiotki|
|Spain||Nadie Sabe Nada||Entiende Tu Mente|
|Sweden||P3 Dokumentar||Sommar & Vinter i P1|
|Netherlands||Zelfspodcast||Man man man, de podcast|
Many of the top shows around the world follow a familiar interview or conversational format, but there are trends that deviate from that formula. In particular, there are a number of podcasts focused on health and wellness as well as current events.
The early beginnings of podcasting were dominated by upstart content creators, but as the market has matured, big media outlets and A-list personalities have been vying for listeners’ attention in an increasingly crowded field. As it stands now, two podcasts from America carry a large presence in foreign markets, and the two big personalities—Michelle Obama and Joe Rogan—stand a notch above the rest.
The Rogan-Obama tug of war in the podcast realm has had its back and forths. Obama pulled ahead in many countries in August, but in September the pendulum swung in favor of Rogan.
Follow The Money
In 2015, ad revenue in the podcast industry was a minuscule $69 million across the board. It’s expected to reach over $1 billion by 2021, and to grow further from there.
The podcast boom is powered by younger generations, and both millennials and Gen Z represent a sizable portion of the total podcast audience globally. In particular, demographic listenership numbers experience a big drop after the 35-54 age bracket.
Flexibility and variety are key features that are helping fuel the growth of the medium. One can keep up with serious world affairs or listen to Call Her Daddy—a podcast on sex and relationships by Barstool Sports, another podcast that frequently tops the charts.
Top Podcast Publishers by U.S. Audience
When it comes to key participants in the industry, National Public Radio (NPR) sits on the top spot with over 26 million unique monthly audience members. In close second, iHeartRadio holds a whopping 494 shows.
|Podcast Publisher||U.S. Unique Monthly Audience||Global Downloads & Streams||Active Shows|
|New York Times||13,102,000||145,961,000||15|
|Cumulus Media/Westwood One||6,473,000||40,912,000||115|
|This American Life/Serial||5,924,000||22,722,000||2|
|All Things Comedy||4,890,000||28,770,000||58|
|American Public Media||3,362,000||17,997,000||50|
|Fox News Radio||2,518,000||13,633,000||34|
If you’re bullish on podcasts, many in the top 20 are publicly traded entities who either stand alone, or are part of a larger corporation. Notable stocks include the New York Times, ESPN as part of Disney, and Warner Media as part of AT&T.
Spotify Today and Tomorrow
Spotify’s direct listing IPO was initially met with a lack of confidence, due to Big Tech’s entry in the space, as well as the profitability and monetization concerns that typically plague the music industry as a whole. However, the company has done well in abating those concerns, especially if you consider Spotify’s stock price, which has doubled in the last year. An impressive 21% of Spotify’s monthly active users engage with podcast content.
In addition, a wealth of personalities have entered the podcasting space. These big names suggest that the competition is dialing up.
In recent months, an exclusive deal between Spotify and Joe Rogan, valued at over $100 million took the podcasting world by storm. This is quite a monumental step for the podcast timeline, and one that suggests more deals could follow as Spotify looks to lock people into their platform with exclusivity deals.
Here’s What Happens Every Minute on the Internet in 2020
A lot can happen in an internet minute. This graphic looks at the enormous numbers behind the online services billions use every day.
What Happens Every Minute on the Internet in 2020
In 2020, an unfathomable amount of digital activity is occurring at any given moment. This ongoing explosion in activity is the aggregate output of 4.5 billion internet users today, a number that’s projected to increase even further in coming years.
This powerful visual from Domo helps capture what happens each minute in today’s hyper-connected internet era, and it’s actually the eighth edition produced since the year 2012.
What can we learn from the evolution of what happens in an internet minute?
How Times Have Changed
Over its relatively short history, the internet has been a catalyst for both the rise and demise of new companies and platforms.
By looking at which brands have appeared in the graphic in earlier years, we can roughly chart the prominence of certain tech segments, as well as observe brands with the most staying power.
As you can see above, platforms like Tumblr, Flickr, and Foursquare showed some promise, but eventually got omitted from the graphic as they dropped off in relevance.
Meanwhile, tech companies like Facebook, Amazon, and Google have had impressive staying power, evolving to become some of the biggest companies in the world. In the process, they’ve caught up to longer-standing titans like Apple and Microsoft at the top of the food chain.
The New “New Thing”
Not surprisingly, much of the internet landscape looks different in 2020. Here are a few of the digital hot spots today.
Nearly $240,000 worth of transactions occur on Venmo per minute. This has served as a catalyst for parent company PayPal, which evolved along successfully with fintech trends. PayPal’s stock now trades at near all-time highs.
Even before COVID-19 resulted in shuttered storefronts and surging online orders, e-commerce was a booming industry. It’s now estimated that $1 million is now spent per minute online. Amazon ships an astounding 6,659 packages every minute to keep up with this demand.
In a predominantly remote-working environment, tools like Zoom and Microsoft Teams host 208,333 and 52,083 users each minute respectively. Particularly in the pandemic era, it seems that this trend is here to stay.
The accelerated world we are in today means that many companies do not sustain a competitive advantage for as long. Social media companies have dwindled as observed above, and this is similarly reflected in the average lifespan of an S&P 500 company.
A typical company’s tenure on the S&P 500 is expected to shrink rapidly in the next few years:
- 1964: 33 years
- 2016: 24 years
- 2027E: 12 years
Companies are shaving anywhere between 15-20 years off those highs, with estimates of further declines. This metric symbolizes the rapid evolution of the business landscape.
What Lies Ahead
It’s seemingly easy to forget mankind is still very early in the developments when it comes to the internet. But in this short period, its rise to prominence and the broad digitization of the world has left us with a very eventful timeline.
If the last decade serves as a reference point, one can expect further and intensifying competition among tech companies. After all, the reward—winning in today’s digital economy—reaps much greater value.
All signs point to internet activity advancing to further heights, if not because of 5G and its associated breakthroughs, then perhaps due to the steady rise in people gaining internet access.
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