The Return

The financial return for this product could prove to be quite significant. Even though PrivacyCheck and other competitive products offer similar services, they lack the focus on the education market. With the majority of the education market in mind we would have a considerable return. PrivaSearch as a freemium product intended for individual teachers would reveal no return, of course; however, this product would attract the attention of school boards and districts and even government level education ministries or departments as a whole. Once these agencies have an idea of what PrivaSearch could do for the safety of the students that they teach, they will consider looking into the premium PrivaSearch product. At $0.50/month/teacher for the premium package (an eighth of what Google charges for individual G Suite Enterprise for Education student or staff licenses; Alcantara, 2018) I have created a few market scenarios below. Remember that PrivaSearch is a Chrome extension; therefore, using G Suite for Education numbers is important to ensure accuracy of this market. PrivaSearch would offer UT CID 10% of the return, which is calculated in the scenarios below.

The numbers below are based on a recent online article stating that 90 million students and staff use G-Suite for Education worldwide (Wan, 2019). From this number I am using a conservative 24:1 student to teacher ratio to understand how many teachers could be using PrivaSearch worldwide. This yields roughly 3.75M teachers worldwide who use G-Suite for Education. Now, to get even close to the entire global market is unreasonable, so I started with 25% of teachers on board for the high end.

As you notice, the lower end does not yield very much of a return, and this is likely the most accurate to market numbers for the first couple of years; however, it would be likely that once PrivaSearch gets past its start up phase it will have its name out there, especially through its useful freemium product, and will be adopted by more and more teachers and districts. We also have to consider that once PrivaSearch is built, that there will be little maintenance, so net revenue will be close to gross revenue very quickly.