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“
