andy bovingdon ‘how to generate revenue from a developer program?’ presentation

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Leaders in mobile billing & analytics How to generate revenue from a developer program? Mobile billing advice to maximize revenues for all Andy Bovingdon VP Product Marketing

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Presentation by Andy Bovingdon, VP Product Marketing at Bango, given at Mobile World Congress 2011. Topics covered: Why conversion rates are important * Direct billing * cross operator billing platforms * Payout rates and marketing

TRANSCRIPT

Page 1: Andy Bovingdon ‘How to generate revenue from a developer program?’ presentation

Leaders in mobile billing & analytics

How to generate revenue from a developer program?Mobile billing advice to maximize revenues for all

Andy BovingdonVP Product Marketing

Page 2: Andy Bovingdon ‘How to generate revenue from a developer program?’ presentation

The best developer program deliversmaximum earnings for minimum effort

Page 3: Andy Bovingdon ‘How to generate revenue from a developer program?’ presentation

Ways to make money

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Indirect

Advertising

Direct

Payments

AffiliateMarketing

SearchMarketing

Banner Ads

CreditCards

PayPal,Google Checkout, Amazon Payment

OperatorBilling

Page 4: Andy Bovingdon ‘How to generate revenue from a developer program?’ presentation

Mobile billing recommendation #1

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1. Focus on conversion rates– Higher conversion rates mean higher earnings– Give the consumer a clear and simple experience

• Show clear payment terms• Minimize the number of payment steps• Ensure most subscribers can pay with one click

– Operator billing delivers the highest conversions• ~7% is typical credit card conversion rate• ~60% is typical for traditional operator billing

Page 5: Andy Bovingdon ‘How to generate revenue from a developer program?’ presentation

• Example: 1000 customers each buying a $10 item

Why conversion rates are important

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Operator billing60% conversion rate40% fees

Credit cards10% conversion rate2% fees

$980Developer earnings

$3,600Developer earnings

$2,400Biller earnings

$20Biller earnings

Operator billing delivers considerably higher revenues to all

Page 6: Andy Bovingdon ‘How to generate revenue from a developer program?’ presentation

Further boosting conversion rates

• Consistent carrier billing over WiFi– Over 50% of connections are now via WiFi – http://news.bango.com/

• Optimal one-click payment experience – Avoid registration, logins, extra confirmation pages

• Identification and the network effect– Remember people & preferences across merchants

• Failover to credit cards or PayPal– Funds unavailable, monthly or daily limits reached– No identity, operator billing down,

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Page 7: Andy Bovingdon ‘How to generate revenue from a developer program?’ presentation

Mobile billing recommendation #2

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2. Use direct billing – not premium SMS– Direct billing provides

• Immediate response with detailed status• Full granularity of price points• Credit card like capabilities

– Problems with premium SMS include• Delays and message loss• Lack of status• Restricted price points

Page 8: Andy Bovingdon ‘How to generate revenue from a developer program?’ presentation

Mobile billing recommendation #3

3. Keep it simple– Use existing cross operator billing platforms

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Operator 1

Developer

Operator 2

Operator 3

Operator 1

Billing platform (e.g. Bango)

Operator 2

Operator 3

Developer

• Effort per operator• New work each time• Maximum effort

• Single effort• No extra work • Minimum effort

Page 9: Andy Bovingdon ‘How to generate revenue from a developer program?’ presentation

4. Don’t ignore payout rates or marketing– 40% fees are not viable or competitive today– Higher earnings drives increased marketing

Mobile billing recommendation #4

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EarningsMarketing

Sales

Page 10: Andy Bovingdon ‘How to generate revenue from a developer program?’ presentation

5. Information, information, information– Detailed payment reports for revenue & conversions

Mobile billing recommendation #5

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Page 11: Andy Bovingdon ‘How to generate revenue from a developer program?’ presentation

5. Information, information, information– Relate payments to marketing, websites and app use

Mobile billing recommendation #5

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Page 12: Andy Bovingdon ‘How to generate revenue from a developer program?’ presentation

Leaders in mobile billing & analytics

Andy [email protected]

web: bango.comwhite papers: bango.com/wp

twitter: @bangodotcom

Questions?

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