At its core Task Pigeon is a SaaS task management application with both free and paid tiers. Our free tier is limited to a maximum of 5 users and has more limited functionality. The paid tier starts at $9 USD per user, per month.
Our marketplace offering augments this and provides an additional revenue stream. We have adopted a typical marketplace model and take 20% of the fee from the freelancer.
Long term I expect the split of revenue to be 70% from Monthly Recurring Revenue associated with the task management application and 30% coming from the marketplace.
Applications such as Asana have shown that there is demand for a paid task management application. According to recent reports they have 50,000 paying customers. Even if we assume an average of 10 team members per team (likely to be much higher once we engage enterprise level accounts) that would equate to 500,000 paying users or $4.5 million in Monthly Recurring Revenue (at $9 USD per user, per month).
I really only see that as the start though and am taking on this startup because I see a path to building a multi-billion dollar company. Why? Because the future of the workforce is likely to be split 50/50 between employees and freelancers.
That means that 50% of the current staff budget of corporations all across the world is potentially going to be allocated to engaging with freelancers. To make that process streamlined though there first of all needs to be a task management application that marries task management with access to freelancers together.
Task Pigeon provides this access, so in time we become much more important to a company than merely being a task management application. We provide access to freelancers on-demand so that their employees/teams can get more done each day (and without all the hassle of posting jobs, waiting for responses, haggling over times, etc).
With 125 million formal SME’s in the world even if we take just the top 10% of the market this results in 12,500,000 SME’s that could potentially benefit from our product and service. If we assume an average of 10 employees at this top tier and an average cost per user of $9 USD per month that equates to an total addressable market of $13.5 billion p.a. for the task management side alone.
If we then assume just 30% of the top 10% of SME’s engage with a freelancer platform that’s a total marekt of 3.75m SME’s. If they each spent on average $500 on outsourced work each year that’s an additional market of $1.87billion to target (with our marketplace set up to take 20% of all fees).
Targeting the SME market proves how there is a multi-billion dollar market in both segments. In time of course we believe going upstream to enterprise clients will only expand this number and our potential. In fact 25% of Fortune 500 companies are already using freelancers / on-demand workers and a report by Accenture showed that 85% of IT and Business executives expect to increase their use of freelancers in the coming year.