# Simulation (for Investors)

## Introduction

{% hint style="info" %}
We offer location based user generated content including AR experiences with AI tools to help users create better content and receive location based rewards. This simulation is based in Los Angeles only.
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## Step 1: User Growth and Revenues

<details>

<summary>Growth and Revenues</summary>

* NFT Sales on Marketplace: 2% of each sale on $2,500,000 in sales = $50,000.
* Token Vesting Of The $STRY Token: To be determined (TBD).

</details>

## Step 2: Costs

<details>

<summary>Costs Overview</summary>

Based on the information provided earlier, we have already calculated the total costs for the 1st year based on **250.000 new users**.

**We'll exclude the tokens from the profit calculation for now.**

</details>

## Step 3: Profit

> We will now calculate the potential profit after the 1st year based on the revenues and costs, including the newly added NFT sales.

#### 3 Income Streams for Year One

<details>

<summary>Subscription Model</summary>

10% users subscribe (25.000)

Total Revenues from User Subscriptions: $6,000,000

* Income Overview

  | Revenue Item                                                           | Estimated Revenue |
  | ---------------------------------------------------------------------- | ----------------- |
  | Users Subscriptions: Average $1.99 per 12 mos.                         | $6,000,000        |
  | In-app Purchases: $10 min. for 125,000 users                           | $1,250,000        |
  | Brands Content Marketing: $1,000 x 100 brands                          | $100,000          |
  | (% of Brand Sales to consumers with 100 brands taking 2% of each sale) | $1,000,000        |
  | NFT Sales On Marketplace: 2% of each sale on $1,250,000 in sales       | $50,000           |
  | Token Vesting Of The $STRY Token                                       | TBD               |

Total Costs: $2,100,000

* Costs Overview

  | Cost Item                                      | Estimated Cost |
  | ---------------------------------------------- | -------------- |
  | DappBack custom API for rewards                | $18,000        |
  | Metamask wallet usage (brands pay)             | $20,000        |
  | Custom AR/VR Experiences                       | $300,000       |
  | Sayl for NFT geo-dropping, brand backends, POS | $20,000        |
  | BEEM API usage                                 | $20,000        |
  | Possible Apple App Gas Fee Charges             | $2,000         |
  | Team Payroll & Operating Expenses              | $1,720,000     |
  | Estimated Total Outlay Year One                | $2,120,000     |

To find the time to profitability, we can divide the total costs by the monthly revenue generated from user subscriptions:

Time to Profitability = Total Costs / (Total Revenues / 12 months)

Time to Profitability = $2,100,000 / ($6,000,000 / 12)

Time to Profitability ≈ 4.2 months

Based on the subscription model alone, WHERE2! is expected to become profitable in approximately 4.2 months.

Note: The total costs have been distributed over 12 months, and December is the first profitable month.

#### Year One Overview

* Total Revenues: $6,000,000
* Total Costs: $2,100,000
* Profit: $3,900,000

</details>

<details>

<summary>Transaction Fees</summary>

Through our partner Sayl, we are connected to companies like McDonald's, KFC, Hilton Hotel, and Southwest Airlines. KFC alone has 28 branches in LA.

Additionally, we aim to collaborate with 50 local businesses, 10 public institutions (schools, universities, libraries), and shopping centers.

We will receive a **2% transaction fee** when users book hotels, tickets or purchase through our platform. There are hundreds of hotels in LA alone with whom we will partner.

</details>

<details>

<summary>Location based Advertisement</summary>

An average mid-sized Los Angeles restaurant might allocate $5,000 to $30,000 annually for advertising in third-party apps, while larger establishments in prime locations could invest over $50,000 for maximum visibility. Costs vary based on business size and competition.

We plan to gain 100 new restaurants or hotels (local businesses) that will advertise on our platform in our first year.

</details>

##

## Step 4: User Acquisition

> Assuming 10% of the users actively use WHERE2!, the cost of user acquisition is estimated €20 per user.

We'll assume that active users will use the app once a day.

<details>

<summary>Explanation</summary>

For example, if we spend €10,000 on marketing and advertising and acquire 500 new users, the cost per user is calculated as €10,000 / 500 users = €20 per user.

</details>

## Step 5: Events

> We will factor in the three major events and how they can drive user engagement and revenue.

<details>

<summary>Explanation</summary>

* Events: Rose Parade, Academy Awards (Oscars), LA Pride Festival
* Total attendance for all three events: 100,000 people.
* We plan to acquire 10% of that audience (10,000 users).
* These users are expected to:
  * Start subscribing.
  * Earn rewards.
  * Book hotel reservations.
  * Order food through our partners.

<img src="https://3368094014-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FVc0m3ljPspkmIWP9wqjY%2Fuploads%2FcWFaiZSXUflTHiPBQiLO%2FIMG_5617.jpeg?alt=media&#x26;token=243b5481-a4a6-432b-9237-69a96d572725" alt="" data-size="original">

</details>

## What will Further Boost Revenue

* Working with celebrities and influencers (to bring more people on the platform which will boost subscription fees and NFT Marketplace transactions)
* NFT Marketplace with transaction fees
* Working with travel & tourism industries that have their own communities
* We create custom content for enterprises

{% hint style="info" %}
Explore More Use Cases here at our GitBook “Use Cases“

➡️ [Content Creators](https://where2-world.gitbook.io/where2.world/use-cases-and-features/use-cases/content-creators)

➡️ [Events & Conferences](https://where2-world.gitbook.io/where2.world/use-cases-and-features/use-cases/events-and-conferences)

➡️ [Local Businesses ](https://where2-world.gitbook.io/where2.world/use-cases-and-features/use-cases/local-businesses)
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