Thanks Squeef for the heads up, just had a look at that Litmos website and jeepers guess i really underestimated my guess on the monthly fee being around $50 if we use our competitor fee structure as a guide.
Velpic has outlined its milestones as per below
Now I have done some really rough basic workings to illustrate how these milestones could be achieved using our competitor fee structure as guide.
Point ii - Revenue of $10,000,000
Assuming majority of our clients sign up to a package similar to our competitors 'silver package' which cost $299 per month.
$10,000,000 divided by 12 months = monthly revenue of $833,333.00 divided by monthly fee of $299.00 = 2787 clients
Point iii - Revenue of $50,000,000
Assuming majority of our clients sign up to a package similar to our competitors 'silver package' which cost $299 per month.
$50,000,000 divided by 12 months = monthly revenue of $4,166,666 divided by monthly fee of $299.00 = 13,935 clients
Like I said in a previous post the Australian Bureau of Statistic states that as at June 2014 there were 2.1 million businesses operating in Australia. So these milestones compared to the potential of the size of the market is easily attainable as milestone 3 only requires them to meet less than 1% of the available market (0.007% to be exact)
What's next after they meet their initial milestone targets? go for 3% to 5% more recurring revenue, larger market cap? under promise over deliver?
This is from my personal experience, I find when i use a cloud base system whether that is xero for my accounting or adobe for my editing the more content I start to put on there the more stickier i become to that product so the idea of changing programs is nightmarish having to restart, reinput, reconfigure, re-upload all my work just to save a few dollars per month would not be worth my time.
I would assume that would be the same with most other businesses/companies who decide to sign up with Velpic, the more content they start to create using Velpic the more reliant they become on the program and the thought of changing to save a few dollars wouldn't even cross their mind.
