Lookr monetizes its free users through advertisements. As depicted in the image on the left, ads are integrated into the AIGC sparks that users see. Lookr matches the subject's attributes with relevant brands, such as clothing labels, and showcases them to users. These clothing items come with tags that, when clicked, lead users to our brand partner's website. Lookr earns a commission from the resulting traffic.
Based on the ad revenue models of photo-focused platforms:
We estimate Lookr's revenue from free users to be around $10 per year. The unique presentation of brands on Lookr, closely resembling how users would actually wear the items, provides a more accurate sense of brand fit. This could enhance user engagement and drive more purchases. Consequently, we believe Lookr has the capability to outpace Instagram in terms of ad revenue - be more than $14.14 per user.
Subscription: $10/premium/month
<aside> 💬 [M]: The success of other AIGC products such as Midjourney has proved the market fit of this revenue stream. [U]: This revenue stream is validated from user survey.
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Unlimited Access to AIGC Spark [M]: Premium users have the advantage of unlimited access to AI-generated spark images through AIGC. This is an upgrade from the finite professional database available to free users. AIGC creates more accurate and inspiring images tailored to the current location. Freemium users will have 70 images / month for free.
<aside> 🧮 Why 70? This is based on our cost analysis where each image is valued at $0.02, derived from dividing $583 by 30,000 images (Source: AWS). Given our anticipated 14% paying rate and a user base of 100, we expect to generate $140 in revenue, which translates to $1.4 revenue per user. Therefore, to balance out this revenue, we've allocated 70 free images per user each month.
***Free Images/User = (Expected Revenue/User) / (Cost/Image) Where:
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Faster Spark Generation [M]: In photography, time is crucial. With premium membership, the waiting time for AIGC spark generation is significantly reduced. Free users have limited access and longer waiting times. Premium users benefit from quick and efficient spark generation, ensuring they capture their shots under optimal conditions.
Customized Pose Frames [U]: Premium users enjoy the added benefit of personalized pose frames that match their or their subject's body shape. This customization leads to more relatable and effective poses, as opposed to the generic pose frames available to free users. The customization accounts for individual attributes, ensuring that the subject is showcased in the most appealing manner.
Ads free:
Similar to a virtual fitting room, instead of proactively fit users in different brand, premium users won’t have any ads.
Mix & Match:
At the same time, we aim to maintain Lookr's distinctive brand presentation, which mirrors how users might actually don the items, offering a truer feel for brand compatibility. Our premium users will have the flexibility to mix and match brands of their preference, simulating a virtual fitting room experience, and purchase from attached tags.