🏗️Simulation (for Investors)

Introduction

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.

Step 1: User Growth and Revenues

Growth and Revenues

• 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).

Step 2: Costs

Costs Overview

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.

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

Subscription Model

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

Transaction Fees

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.

Location based Advertisement

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.

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.

Explanation

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.

Step 5: Events

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

Explanation

• 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.

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

Explore More Use Cases here at our GitBook “Use Cases“

➡️ Content Creators

➡️ Events & Conferences

➡️ Local Businesses