How Business Like Mginger will survive

How Business Like Mginger will survive

Recently I was going through my email account and I found a very attractive referral offer by one of my friend Cyril. It was about a website Mginger that provides target specific messaging facility to its user on his cellphone and share the revenue with the recipient of the advertisement. if I am not wrong then it is the same business model which Google is following ;only platform has changed. Google is running its adsense program for websites. Any valid website publisher can get a publisher ID and can show target specific advertisement in his website .Only difference in two models is that here (Google Adsense) money is not passing to the end customer who is clicking on the flashy google advertisement but the money is shared between the Google and the publisher.

In terms of Mginger the money is shared between the customer and the database provider .Mginger is providing the the platform to the advertiser for sending the advertisement to intended audience by SMS.

Let’s do little bit of analysis of this business model.

So the company is giving you 20 paisa for the per advertisement and 10 paisa for your friends advertisement + 5 paisa for your friend’s friends advertisement.

Eg. if you have a chain of 5 people

You>>Friend>> Friend>>Friend>>Friend
(+20 +10 +5 +5 +5)
(+20 +10 +5 +5)
(+20 +10 +5)
(+20 +10)

= 45+40+35+30 = 150 paisa

Bulk SMS gateways charge minimum 30-50 paisa for per national level sms

It means sending 5 sms will cost 150 paisa.

Total = 150+150 = 300 paisa

If we will count website development +Administration+ Human capital Cost = 100 paisa per 5 users then total becomes:

300 + 100 = 400 paisa

If the company is charging 1 Rs per sms to the company for advertising their product and services then for per 5 user Mginger is saving 100 paisa..

So if the company gets 1million users( 10 lacs) then the company makes 2 lacks rs.

But the most interesting point here is that none of the company has the budget to send sms to all the users so they will be sending smses to the target users only so it will definitely bring some depreciation from our estimates. Bulk Smses campaigns are already running in India from long time and I guess there is certainly doubt about the success of these campaign. Rest all depends on you can still register yourself and make some quick bucks until the advertisers realizes that its worthless to advertise to the customers whom are just receiving and deleting the smses. I hope very soon we can find software that will automatically delete the smses receiving from a particular number.

Founders of the portal are ISB graduates so My apologies if they might have a long vision. Currently I have only one vision in my mind.. Now I need not to pay rentals for my cell phones... Mginger Hai Na