Startup advice about commissions

i am still 19 years old so i really don’t know about how money works in business , so to not go in details i am making an android app which facilitates booking football arena online ,in our country in order to reserve pitch we need to call the stadium or go their and leave a deposit, we don’t have here any systems like this, it offers all arenas in our country and make them book any arena they want the date they want , i thought of two options of profit first to add fees on the player (but i really don’t like it) and the second (which i prefer) to take commission from the arena owner but i really don’t know as a football arena manger why would i give money from my profit to reservation application since the arena already book over phone , i am thinking of 5% commission from the stadium owner but i really don’t know how to balance that the owner accept my offer and i make profit at the same time

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  1. You should take try to capture thr market first instead of trying to be profitable
    1) Take the owners into confidence saying that you will offer them more and more bookings and hence greater profits
    2) Encourage them to give discounts via bookings from your app so that you can promote your app over bookings from phone
    3) Try to find investors as your app scales so that you can promote it over ads and offers
    4) You can also build other relevant services into your app as it gains user base and can also sell ad space to clients

  2. Who are the people that are seeking out your service? If it provides something of high value to them, they will pay for it.

    It seems like the seekers are the ones that want to play in the arena, so they’d be the ones paying for the privilege of using a service that makes that easier. But only if it’s a significant pain point for them.

    I would stray away from the build it and they will come strategy. Doesn’t work very well from past experience. You really need to speak to people to understand their pain points and speak to the ‘suppliers’ i.e. the arena’s, to understand the same.

    When you’ve got an understanding of your offering in your head, go back to both sides and ask what they’d pay to have this problem fixed.
    Then, something like: “If I have a product that fixes x, y, z for you for <amount they said>, would you sign up for that service today?” Don’t have them pay anything upfront, just capture their details and notify them when you launch.

  3. A lot of apps gain profits from advertising as opposed to charging their users. Focus on developing a consumer base then market your application as a platform for other companies to advertise. Maybe even the stadiums themselves will start to pay for advertising within your app if it picks up enough momentum.

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