PlayerSearch Blog

by Ted Kasten, Founder of PlayerSearch

Transaction Multiples for Media Companies for 2008

Great analysis on TechCrunch regarding M&A figures for media companies for 2008.  Consumer online media properties carried the richest valuations.


January 8, 2009 Posted by | Acquisitions, Mental Notes | Leave a comment

iPhone Apps

Good insights into selling iPhone apps from Craig Hockenberry and the App Cubby.

Kleiner funded iPhone games company here.

Story of RunKeeper learnings here.  Premium version ($9.99) sold 5k in two months…changed to ad supported free version that sold 120k in two months…

Update 2/23/09:

Another detailed analysis of iPhone application downloads.  Their analysis is wrong though as there download rate dropped off dramatically even before they charged a fee of $.99.

Average use of free apps lasts about 30 days

December 12, 2008 Posted by | iPhone, Mental Notes | Leave a comment

Top 10 Term Sheet Hacks

Courtesy of Mike Markson here.

October 14, 2008 Posted by | Entrepreneurship, Mental Notes | Leave a comment

Ning provides Data Point for “Freemium” Pricing Model

3% of Nings customers actually pay for premium services…

This is a good data point for all start-ups (including mine) that are contemplating the “Freemium” pricing model.  This pricing model is certainly the most popular on the web and allows a company to get a large customer base of free users to monetize with ads along with some subscription revenue from the power users.  I have heard some entrepreneurs state they plan to get 10-20% of their user base to pay for the premium features…but that is probably not going to happen.  Obviously this percentage depends on a lot of factors such as pricing, features, market and others, but I think the 3%  figure that Ning is reporting seems to be the ballpark for the premium component of the Freemium pricing model.

500,000 networks is a big number…what is even more impressive is the fact that 65% of them are active.

October 7, 2008 Posted by | Mental Notes | | Leave a comment