Business Model – Groh
By James Groh
February 12, 2017
DateAdvisor isn’t going to make much money in the first year of business. With the $10,000 given to me to start a business, I identified five different expenses that I will inevitably face. The five expense categories are; marketing, web-hosting/domain registration, legal services, and employee’s wages. The employee’s wages bite the most out of the budget. That is why in the first year I limited hours and wage to a minimum. It was designed to have them contribute a fair amount to the company but still work on it as a side project. The second largest expenditure is for marketing. This includes advertising and consulting charges.
The way the company will make money is via subscriptions and advertising. Customers who want more than just ideas and would like an online dating service can sign up for DateAdvisors own matchmaking service. The prices indicated in the cost sheet are the minimum for a subscription but premium packages can go as high as $75 a month. I will also start advertising with Google Adsense. However, once the site begins attracting more users, I will cut out Google Adsense and construct deals directly with advertisers and companies. The goal is to be able to attract advertisers specifically related to the content on the website. The last month of the year will be the first time that DateAdvisor makes money.