For the summative presentation I have looked more into other expensive for our website and worked out monthly rates fir everything, including paying off the set up fees over 12 months while building up a good traffic history in order to be able to sell ad space to bigger companies for a higher price that relate to our business more. I have also found out three methods that are used to set prices for advertising on websites.
Budget list
- Domaine name - £2.99 a year
- Web hosting - £5 a month
- Maintenance from a web designer - £ 80 and month
- Web design - £100 - £300
month one - £85
month two - £85
month three - £85
month four - £85
month five - £85
month six - £85
month seven - £85
month eight - £ £85
month nine - £ £85
month ten - £ £85
month elven - £85
month twelve - £85
plus £102.99 - £302.99 for web design and domaine name
Monthly overall fee - £110.25
Monthly break down:
- Domaine name - 25p a month
- Web hosting - £5 a month
- Maintenance - £ 80 a month
- Web design - £25 a month
year price - £1,122.99 - £1,322.99
To cover our monthly cost not including the start up fee:
£85 month £21.25 week £3.04 day.
1p per click means we need 304 clicks a day.
The problem is that not everyone that visits the website will click on the advert.
To pay off start up fee over six months - £17.17month £4.29 week 61p day 61 views - £64.66 month £16.17 week £2.31 day 231 views
overall first six months - 365 views - 535 views a day
To pay off start up fee over 12 months - £8.58 month £2.15 week 0.31p day 31 views - £25.25 month £6.31 week 90p day 90 views
overall 12 months - 315 views - 394 views a day
all with our advertising.
Web design you can get a web designer from £50 per hour, for a basic static website it will cost us £100, for a nice looking website it will cost us £200 and for a new looking website plus an admin panel it will be £300.
Google adsense uses a CTR (click through rate) payment system. this means we get paid a certain amount of money for each person that clicks on the advert displayed on our website. The same system is used for them charging us for our website.
We probably won’t be able to get advertiser that will buy and ad space for a decent amount of money until we have a good traffic history which could take six to nine months to build up.
when we finally can sell ad space to bigger companies we can choose to charge them in three different ways, these are:
- A monthly fee
- using CTR (click through rate)
- using CPM (charge per display)
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In the lecture on the 17th we presented our business plan and was given feedback of how to improve them for the summative submission.
For the formative I have found basic fees involved with setting up a website. from this information I have found I think it would be better to create a revenue by using a strategy of maximising sales in the short term, which means selling a lot ad space to cover our costs, and then when our website is more established selling less ad space to more relevant companies for a greater fee, meaning maximising profit in the long term. I have also made a cash inflow/ outflow table and look into possible investors.
Within our group's business plan I have been given the role of being in controll of fiance. For this I have looked at, revenue ( short term and long term), cashflow, investors, balance sheet and funding.
In the next E&E session well talk about, problems and how they can be solve directly and indirectly, this furthered to the area of direct and indirect competition. After doing a 30sec pitch of ourself, that we could use to sell ourself to an employer we went on to working on our group business plans.
E&E
This was an introductory lesson for the subject. From this we got the project brief and learned about trends and fads. I researched the trend of smart phones and the different ways in which they can be used to make money. From this I found that there is ways to make money form the phones themself, selling app and advertising space on apps.
lesson two I missed.