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1.
Revenue Generation: How to Earn Money
A. Commission from Sellers (Vendors)
 How it works: You charge sellers (restaurants, stores, etc.) a percentage (15%-30%) of each
order's value.
 Example: If a seller has 500 orders/month, each worth PKR 1,000, and you charge a 20%
commission, your earnings would be:
o 500 x 1,000 x 20% = PKR 100,000/month per seller.
o If there are 500 sellers, your total commission would be:
o 500 x 100,000 = PKR 50,000,000/month.
B. Delivery Fees from Buyers
 How it works: Buyers pay a delivery fee for each order. The fee can be based on distance or
order value, ranging from PKR 50-200.
 Example: If you have 5,000 customers, each paying PKR 100 for delivery:
o 5,000 x 100 = PKR 500,000/month.
C. Advertising Revenue
 How it works: Sellers can pay to advertise their products or gain priority visibility on the
app.
 Example: If 50 sellers pay PKR 10,000/month for advertisements:
o 50 x 10,000 = PKR 500,000/month.
D. Subscription Plans for Sellers
 How it works: Sellers can opt for premium subscriptions offering additional features like
analytics, priority support, etc.
 Example: If 100 sellers pay PKR 5,000/month for a premium plan:
o 100 x 5,000 = PKR 500,000/month.
E. Partnerships and Sponsorships
 How it works: Collaborate with brands to create co-marketing campaigns or offer exclusive
deals for a fixed fee.
o Example: A brand could sponsor deliveries, paying you a set fee for each order
related to their product.
F. Convenience Charges
 How it works: Charge small extra fees for premium services like express delivery or cash-on-
delivery options.
2. Managing Expenses
To run a successful delivery business, handling expenses effectively is key. Below are your expected
costs:
A. Monthly Operating Costs
 Rider Payments:
o 25 riders who are paid PKR 50-100 per delivery.
o Example: If each rider completes 20 deliveries/month, and they are paid PKR 70 per
delivery:
 25 riders x 20 deliveries x 70 PKR = PKR 35,000/month for each rider.
 For 25 riders, total payment = PKR 875,000/month.
 Platform Hosting & Maintenance:
o The yearly cost for hosting is PKR 150,000, so monthly costs would be:
 PKR 150,000/year ÷ 12 = PKR 12,500/month.
 App/Website Maintenance (Excluding Developer Cost):
o Regular app/website updates and bug fixes may cost around PKR 50,000-100,000 per
month.
 Marketing Costs:
o Marketing expenses depend on your strategies, but they may range from PKR 50,000
to 100,000 per month for ads, promotions, and influencer campaigns.
 Customer Support & Admin Salaries:
o You may need a team for customer service, which could cost PKR
50,000-100,000/month depending on team size.
 Miscellaneous Costs:
o This includes office utilities, legal fees, and other operational costs, which may total
PKR 30,000-50,000/month.
B. Total Estimated Monthly Expenses:
 Rider Payments: PKR 875,000
 Hosting & Maintenance: PKR 12,500
 App/Website Maintenance: PKR 50,000-100,000
 Marketing: PKR 50,000-100,000
 Customer Support/Admin Salaries: PKR 50,000-100,000
 Miscellaneous Costs: PKR 30,000-50,000
 Total Monthly Expenses: PKR 1,100,000 – 1,300,000

3. Profit and Financial Projections
Assuming the business generates the following:
A. Monthly Revenue (based on expected volume)
 Commission from Sellers:

If 500 sellers generate PKR 1,000,000/month each:
o 500 x 1,000,000 = PKR 500,000,000/month.
 Delivery Fees:
If 5,000 users pay PKR 100 per order:
o 5,000 x 100 = PKR 500,000/month.
 Advertising Revenue:
If 50 sellers pay PKR 10,000/month for ads:
o 50 x 10,000 = PKR 500,000/month.
 Subscription Plans for Sellers:

If 100 sellers pay PKR 5,000/month for premium services:
o 100 x 5,000 = PKR 500,000/month.
 Total Monthly Revenue:
o PKR 1,500,000 + 500,000 + 500,000 + 500,000 = PKR 2,500,000/month
4. Break-Even Point
To cover your expenses, you need to know how many orders must be processed to break even:
 Total Monthly Expenses = PKR 1,100,000 - 1,300,000
 Average Revenue per Order (e.g., PKR 200 from commission and delivery fees)
o Break-even orders = Total Monthly Expenses ÷ Average Revenue per Order
o 1,100,000 ÷ 200 = 5,500 orders/month
o 1,300,000 ÷ 200 = 6,500 orders/month
5. Growth and Cash Flow Management
A. Increase Order Volume:
 Focus on growing your customer base. If you target 7,000-10,000 monthly users, your
revenue will increase proportionally.
B. Vendor Negotiations:
 Offer competitive commission rates to attract more sellers but focus on those who generate
high-volume orders to maximize revenue.
C. Flexible Rider Schedules:
 Use shared riders for low-demand hours to reduce idle time. Consider offering part-time
riders for certain shifts.
D. Targeted Marketing:
 Invest in local campaigns, social media ads, and influencers to reach more users in Gojra.
6. Cash Flow Management Tips
 Track Metrics:
Regularly monitor key performance metrics using tools like Google Analytics, Facebook
Insights, and your app's internal dashboard.
 Plan for Peak Times:

Increase marketing efforts and rider availability during high-demand periods like Ramadan
or national holidays.
 Reserve Funds:
Keep a portion of your monthly earnings aside as a contingency fund for unexpected costs or
slow business periods.
Conclusion: Profitability Outlook
 Projected Monthly Revenue: PKR 2,500,000
 Projected Monthly Expenses: PKR 1,100,000 – 1,300,000
 Monthly Profit: PKR 1,200,000 – 1,400,000
 Annual Profit (Estimated): PKR 14,400,000 – 16,800,000
If you implement the strategies outlined, you'll reach the break-even point quickly and begin
generating significant profits. Make sure to continue expanding your customer base, improving
service quality, and optimizing operational costs to maximize your success.

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1.

Revenue Generation: How to Earn Money

A. Commission from Sellers (Vendors)

o 500 x 1,000 x 20% = PKR 100,000/month per seller.

o If there are 500 sellers, your total commission would be:

o 500 x 100,000 = PKR 50,000,000/month.

B. Delivery Fees from Buyers

o 5,000 x 100 = PKR 500,000/month.

 Example: If 50 sellers pay PKR 10,000/month for advertisements:

o 50 x 10,000 = PKR 500,000/month.

D. Subscription Plans for Sellers

 Example: If 100 sellers pay PKR 5,000/month for a premium plan:

o 100 x 5,000 = PKR 500,000/month.

E. Partnerships and Sponsorships

A. Monthly Operating Costs

o 25 riders who are paid PKR 50-100 per delivery.

 25 riders x 20 deliveries x 70 PKR = PKR 35,000/month for each rider.

 For 25 riders, total payment = PKR 875,000/month.

 Platform Hosting & Maintenance:

 PKR 150,000/year ÷ 12 = PKR 12,500/month.

 App/Website Maintenance (Excluding Developer Cost):

 Customer Support & Admin Salaries:

B. Total Estimated Monthly Expenses:

 Rider Payments: PKR 875,000

 Hosting & Maintenance: PKR 12,500

 App/Website Maintenance: PKR 50,000-100,000

 Marketing: PKR 50,000-100,000

 Customer Support/Admin Salaries: PKR 50,000-100,000

 Miscellaneous Costs: PKR 30,000-50,000

 Total Monthly Expenses: PKR 1,100,000 – 1,300,000

Assuming the business generates the following:

A. Monthly Revenue (based on expected volume)

 Commission from Sellers:

o 500 x 1,000,000 = PKR 500,000,000/month.

o 5,000 x 100 = PKR 500,000/month.

o 50 x 10,000 = PKR 500,000/month.

 Subscription Plans for Sellers:

o 100 x 5,000 = PKR 500,000/month.

 Total Monthly Revenue:

o PKR 1,500,000 + 500,000 + 500,000 + 500,000 = PKR 2,500,000/month

 Total Monthly Expenses = PKR 1,100,000 - 1,300,000

o Break-even orders = Total Monthly Expenses ÷ Average Revenue per Order

o 1,100,000 ÷ 200 = 5,500 orders/month

o 1,300,000 ÷ 200 = 6,500 orders/month

5. Growth and Cash Flow Management

A. Increase Order Volume:

6. Cash Flow Management Tips

 Plan for Peak Times:

Conclusion: Profitability Outlook

 Projected Monthly Revenue: PKR 2,500,000

 Projected Monthly Expenses: PKR 1,100,000 – 1,300,000

 Monthly Profit: PKR 1,200,000 – 1,400,000

 Annual Profit (Estimated): PKR 14,400,000 – 16,800,000

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