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4. Revenues

So how do you build your asset and generate revenues?

Putting it simply, FIOFRO Limited provide you a fully branded platform and you market your new network to your followers, supporters, fans and people who are interested in your community, the system has a number of integrated revenue generating models that pay ALL revenues direct to your organisation.

For the purposes of this example; we have chosen 3 values and assumed a network of only 5,000 people sharing a common interest.

This is a direct comparison of you using a public social giant and running your own Social Engagement Platform.

Revenue Streams
 

Revenues from your own Platform

 

Revenues from a Social Media Giant

Subscriptions   £180,000   £0.00
Advertising   £20,000   £0.00
Asset Value   £650,000   £0.00
Upgrade   £60,000   £0.00
TOTAL
    £910,000
  £0.00

The above figures are based on only 5,000 users paying a £3.00 per month subscription with 50% upgrading by £2.00 within 6 months. The user value is based upon  a market rate of £130.00 per subscriber valuation. All figures are pre revenue share splits.

 

OK, so lets look at an example;

Let's say for example you are a a sports brand (maybe a football club) and you have 50,000 UK supporters and another 20,000 supporters spread throughout the world and your stadium holds 22,000 capacity of which 3,000 seats are reserved for the visitors. On a good day the brand engages with 19,000 supporters, twice a week, provided that the stadium is filled to capacity.

So who is engaging with the other 51,000 supporters, who did not buy a ticket, maybe do not or cannot attend fixtures and in many cases do not generate any revenues for the brand ?

Taking the above assumptions into account, at £3.00 per month, the average price of a programme, the sports brand could be generating an extra £153,000 per month just from the subscriptions of supporters who did not or do not attend fixtures and therefore make no revenues for the sports brand at present.

That's an extra £1,836,000 per annum without any capital outlay, ticket sales, merchandising, or advertising revenues.

At present market value of this asset would be worth an additional £6,630,00.00 yet most sports brands are currently giving this asset value to facebook for free.

Even if the sports brand only engaged with the 20,000 international supporters who often don't generate any revenues for the sports brand, this would still be generating an extra £720,000 per annum from a base subscription rate and generate an asset value of £2,600,000.00.

These figures are based purely on a base rate subscription of £3.00 per month and does not include any revenues from merchandising, subscription upgrades, events, prize draws, fee based access areas, pay per view items, targeted advertising, sponsorship, memorabilia, ticket sales, programme sales or any other forms of revenue.

In today's competitive market place, can any sports brand afford not to be generating these kinds of potential revenues from un-engaged, un-serviced supporters ?  Especially when there is no capital outlay to implementing such a solution.

It all sounds too good to be true. How do you make any revenues if you do not charge any set up fees, hosting fees or provision fees?

Well, we take all of the risk in the provision of your Social Engagement Platform and for this we share in the reward, in a form of an agreed revenue share. It is like a partnership, we provide all of the systems and support at our expense and you market the service to your followers and we all share in the success.

It's that simple.