4 ms·

I think your analysis is flawed. While I think your costs are probably on target (except for compensation costs, which I think you are short by about 50-100%)

by davidu 16y ago

I think your analysis is flawed. While I think your costs are probably on target (except for compensation costs, which I think you are short by about 50-100%) your revenue guesses I think are grossly off the mark. Dropbox has 25,000,000 users. If 5% are converting at $100/year then they are making $125,000,000 a year in revenue. You're numbers are nowhere near that mark. And I think Dropbox probably has a much higher conversion rate than 5%. I wouldn't be surprised if they weren't on $200,000,000/year run rate.

espeed 16y ago
"Dropbox Could Generate $100 Million In Revenue This Year" http://www.businessinsider.com/dropbox-revenue-2011-3 http://www.businessinsider.com/dropbox-revenue-2011-3
roel_v 16y ago
"And I think Dropbox probably has a much higher conversion rate than 5%." Why do you think so?
webwright 16y ago
I love Dropbox as much as anyone, but unless you're using it for audio, video or (lots of) photography, the free offering is plenty. I'd be surprised if they were much north of 5%. That said, they've got a great "long game". Everyone will fill it up EVENTUALLY-- and then you have to choose between nuking files and converting to premium.
- revorad 16y ago
  I don't use Dropbox for audio, video or photos, and I'm already using more than 3.3G. A lot of my folders are probably things I put in there to quickly share it with someone or access it from another computer. I could move them now and free up some space. But, I can't be bothered. That's one reason why people will convert to premium. The hassle of sorting through folders is probably not worth $100 to many.
- enra 16y ago
  I've created over 1GB .psd files just in couple of weeks and my total usage is now around 40GB. So I guess lot of designers need the pro version if they want to use Dropbox.
TheSOB88 16y ago
There is no way conversion is anywhere near 5%. The vast majority of users hardly use it.
- davidu 16y ago
  That (brilliantly) is not directly related to conversion rate.

by davidu 16y ago

espeed 16y ago

"Dropbox Could Generate $100 Million In Revenue This Year" http://www.businessinsider.com/dropbox-revenue-2011-3 http://www.businessinsider.com/dropbox-revenue-2011-3

roel_v 16y ago

"And I think Dropbox probably has a much higher conversion rate than 5%." Why do you think so?

webwright 16y ago

I love Dropbox as much as anyone, but unless you're using it for audio, video or (lots of) photography, the free offering is plenty. I'd be surprised if they were much north of 5%. That said, they've got a great "long game". Everyone will fill it up EVENTUALLY-- and then you have to choose between nuking files and converting to premium.

revorad 16y ago
I don't use Dropbox for audio, video or photos, and I'm already using more than 3.3G. A lot of my folders are probably things I put in there to quickly share it with someone or access it from another computer. I could move them now and free up some space. But, I can't be bothered. That's one reason why people will convert to premium. The hassle of sorting through folders is probably not worth $100 to many.
enra 16y ago
I've created over 1GB .psd files just in couple of weeks and my total usage is now around 40GB. So I guess lot of designers need the pro version if they want to use Dropbox.

TheSOB88 16y ago

There is no way conversion is anywhere near 5%. The vast majority of users hardly use it.

davidu 16y ago
That (brilliantly) is not directly related to conversion rate.