Day 162
16:48 PM
Alright so we've got a money printer with the UK store.
£14.99/2 weeks is the winning offer.
I tested £8.99/week and that worked sliiightly better than 14.99/2 weeks but I'm gonna pass on that.
Idk why 14.99/2 weeks works better than 15.99/month but whatever floats their boat...
14.99/2 weeks
Spent a while doing the math on it trying to figure out stuff...
If cost per acquisition halves, I seem to make approximately 2x the money due to 2x the customers
Which is obvious, but that wasn't the case before due to margins and weird shipping rates etc.
I'm currently getting purchases for $8... I don't expect that to last, but idfk what's going on
I expect the upper bound will be $20-25-30
Lower it is the better of course
Anyway where was I...
£14.99/2 weeks (4 months)
Cost of goods: £25
Cost per purchase: £20
Revenue per customer (before VAT, after transaction fees) = £112*
VAT is a non-issue since we don't pay it too frequently.
£112 – (25 + 20) = £67 profit before VAT,
£47 profit after VAT
If I get 50k customers, which is 1/1200 UK people... doable...
That's like 2.3m pre-tax, 1.6m ish post corp tax
Anyway 50k idc about that number — I'm gonna do same thing in USA once cashflow is better
I'll have to figure out when to scale into US. Only running UK ads rn since cost per purchase is 2-3x lower than USA.
I can also sell multiple different products so easily sell to 10-20m people using the same model
Mid-ticket items (£100-200, buy now pay later model)... £50 net profit per customer = 500m
Even if my SAAS starts off slow I can just run this up.
ATM little-no work, will outsource customer service + my SAAS is obviously a customer service app so I'll make everything more efficient there...
I can just increase ad spend, job done.
Ah yes SAAS, I was previously waiting for Facebook Business Manager Verification so my app can integrate with Facebook and Instagram + I can publish the app....
But now I'm just gonna work on features and wait for that
I also made a new Facebook Business Manager so now I'm waiting for 2 to get approved at once... hopefully one of them does get approved.
Will likely have to make new company entity for SAAS but that takes 10mins.
Anyway so UK thing, depending on cost per purchase —-
£10k —> £30k in 3 months
£30k —> £90k in another 3
£90k —> £300k in another 3
£300k —> 1m in another 3
Are these conservative estimates? Maybe.
If my cost per purchase stays at £10-15, it will be faster.
After that point I might have to diversify into different products, which shouldn't be too hard at all.
I could ask for loans from bank, but by the time I get one... I'll likely not need it.
I need a month worth of data before I see how it gets on.
PLUS the fact that this product may be seasonal – or not-good-for-summer...
Anyway I'll just keep doubling money.
After a certain point I won't need to ask for a loan anyway since the loan would be too big/underwriting process too long.
Ah nope. Cashflow appears to be a non-issue, as long as I slowly scale.