It takes a special combination of ingredients to land in my “flops” file. You have to lose your parent company at least $50 million. You probably started out with big ambitious goals, all-at-once funding, leaders personally committed to a given approach and most of all, a boatload of assumptions relative to facts. It’s a recipe for totally unnecessary disaster.
Just to validate the math. In the article you stated:
"This is where the math becomes head-scratching – even if they succeeded at generating 60,000 sales per year, each transaction would have to generate over $300,000 in revenue to get to a $20 billion figure."
However the 20 billion figure comes in five years:
"It projected transaction volumes of 5,000 homes per month, with revenue potential of $20 billion within five years."
That means that each sale should generate roughly 67K USD in revenue. Instead of 300K, the number is more likely a 25% premium on the median price of a US household.
The latest for the Flops File - Zillow Offers
Hi!
Just to validate the math. In the article you stated:
"This is where the math becomes head-scratching – even if they succeeded at generating 60,000 sales per year, each transaction would have to generate over $300,000 in revenue to get to a $20 billion figure."
However the 20 billion figure comes in five years:
"It projected transaction volumes of 5,000 homes per month, with revenue potential of $20 billion within five years."
That means that each sale should generate roughly 67K USD in revenue. Instead of 300K, the number is more likely a 25% premium on the median price of a US household.
BR,
AF