PowerPoint Presentation

something-something-something.comFormerly Personal Libraries

Upwardly mobile young professionals making $2-10K of discretionary online purchases a year (excluding travel)Discover online goods recommended by friends at the lowest possible price from trusted vendorsFB/TW posts from users you know

Company blog, FB, TW accountsWeek 7 CanvasAffiliate program

SEO/SEM/SM

IE/FF/Chrome App StoresFB/TW posts from cartpop users you knowDevelopersMarketersBloggers and Media targeting customer segment

Retail marketing partners

IE/FF/Chrome teams

Affiliate Program ProvidersAffiliate program feesLicensingSubscription feesAd revenueAWS InfrastructureSEMEng & Marketing OpEx

Pat the ProfessionalUpwardly mobile, $2-10K discretionary purchases/year (excluding travel)MVP: Trusted Adviceon products tailored to your needs by people and groups relevant to you. FB/TW posts from users you know

Company blog, FB, TW accountsWeek 8: Social ShoppingAffiliate program

SEO/SEM/SM

IE/FF/Chrome App StoresFB/TW posts from cartpop users you knowDevelopersMarketersBloggers and Media targeting customer segment

Retail marketing partners

IE/FF/Chrome teams

Affiliate Program ProvidersAffiliate program feesLicensingSubscription feesAd revenueAWS InfrastructureSEMEng & Marketing OpEx

Teaching TeamYou need to review what you did with Personal Libraries and redo as much as possible for Wantio

MentorsWhat experience and expertise does the team bring to this problem?What are your unique insights into the problem? What unmet needs that matter (offer the consumer tangible value) are you seeking to fulfill?Who else is trying to do this, and what is unique/interesting about their approach, and what is deficient?What is the scale? If you win this category, how big is the company?Who wins and who loses if you are successful?Feedback this Week

Customer Segment: Professional-class consumers shopping frequently online Pat the Professional

Upwardly mobile professional (some Grad Students)Salary: $40,000 150,000/yearFinance, Consulting, PR, MarketingFollows fashion/technology trendsSpends $1-15K on discretionary items onlinePurchased online in last 30 days

DemographicsMale/female, aged 18-35Minimum bachelors from expensive schoolTraits:Ideas from blogs & shopping websites Values celebrity trends & friends opinionsWants high ticket items at lowest priceEvent-driven shoppernew release or sale

MotivationCraves new productsHates tedious workIdentifies as influencer among friendsFears being cheated online

BehaviorSpends 5 hour+ monthly hearing about products Shares online and in person about products he loves

Budget$2-10K+/year in discretionary online purchases

The XXX is awesome, I really want one. I know I just bought the YYY, but its probably time to upgrade.

Source: US Bureau of Labor Statistics~5.9M Pat the Professionals in US

Drawn from top 1/3 of 17.8M frequent online shoppers

17.8M based on 40.2M Professionals (2008 Census) * 0.762 US Internet Penetration (Nielsen 2010Q1) * 0.58 consumers shopping online in last month (Nielsen 2010Q1)

Online Recommendation Market Opportunity (conservative strawman #s)Assuming 10% share, 5% affiliate fees

Top Shoppers (~$7B/year spend): ~ $35M/year

Professional-class frequent shoppers (~$1.8B/year): ~ $9M/year

Other Professional-class shoppers ($0.7B/year): ~3.5M/year Customer Segment: Top shoppers spend a lot of money

50%+ of monthly spending for Top Shoppers happens online~$7B spent by Top US Shoppers/yearBased on 918K top shoppers (given top 3% of professionals shopping online) * $7,625/year online spend1

1vetted against $1072 average weekly wage (US Census) * 2.84 weeks salary spent per month (given 51-75%, 75% spend levels) * 0.2 after tax discretionary income ratioCustomer Segment: US distinctly different from rest of world in key areasComparison shopping and aggregators less popular in US than in rest of worldUS most likely to share positive experiences online vs. rest of world

Customer Segment: Reviews & popularity highly disproportionate across productsBooks (2009: ~$40B retail, ~$24B wholesale, APA)Head of mobile strategy at major US publisher- Print in massive decline, eBooks exploding, players trapped in merchandising mindset

Electronics (2009: $171B, CEA) Entrepreneur with multiple successful affiliate marketing businesses, specializing in electronics High instances of fraud; affiliate programs monitor partners very closely, have pricing power

Recreational Boating (2009: $10B, BI)Entrepreneur in recreational boat marketReferrals major influencer of purchase decisions in $10B/year market7M new, 1.3M used boats sold in 07, vs. 3.2M new, 1M used sold in 09

Elite Fashion Startup helps consumers share shopping finds and facilitate purchase from vendor network

Higher EdCo-Founder of leading GMAT prep site (small business ~150K UVs/M)200K GMAT test takers, 10-15x considering (GMAC)

Paid Video ContentHedge fund manager on analysis of NetflixCan develop strong partner relationships monetizing remnant inventoryCategory Exploration, Research & Interviews / Potential Partners

Recreational Boating

Category Exploration, Research & Interviews / Potential Partners

Recreational Boating Books (2009: ~$40B retail, ~$24B wholesale, APA)Head of mobile strategy at major US publisher- Print in massive decline, eBooks exploding, players trapped in merchandising mindset

Electronics (2009: $171B, CEA) Entrepreneur with multiple successful affiliate marketing businesses, specializing in electronics High instances of fraud; affiliate programs monitor partners very closely, have pricing power

Recreational Boating (2009: $10B, BI)Entrepreneur in recreational boat marketReferrals major influencer of purchase decisions in $10B/year market7M new, 1.3M used boats sold in 07, vs. 3.2M new, 1M used sold in 09

Elite Fashion Startup helps consumers share shopping finds and facilitate purchase from vendor network

Higher EdCo-Founder of leading GMAT prep site (small business ~150K UVs/M)200K GMAT test takers, 10-15x considering (GMAC)

Paid Video ContentHedge fund manager on analysis of NetflixCan develop strong partner relationships monetizing remnant inventory

Phone call with founder Joe Einhorn10,000 users, 100 million objects in databaseVision: Wherever you are on the web or in the world, if you see something you like you can express it & learn more, Target user: anyone who owns / buysMost content is given free to user (without sign up), Avg unique visitor views 20 pages, priority is to get users viewing & publishing on the siteNo formal user acquisition process, want to keep user visits organicEarly adopters / active users rewarded with titles, ex: editor in chief, art directorPartners: 1. Media companies, journalists who discover cool things2. Stores that sell the same or similar itemsTheFancy.com : People connected via ObjectsCustomer Segment: Stanford Survey Results (n=40)Customer Segment: Stanford Survey Results (n=40)People spend more than they thinkCustomer Segment: Stanford Survey Results (n=40)People love a discount, but arent price conscious

Customer Segment: Focus on young & affluent

Young (18-34), affluent women ($50K-80K+)Young (18-34), affluent men ($50K-80K+)

BENCHMARK: Gawker Media crowd (~19M UV/month)

Pat the ProfessionalUpwardly mobile, $2-10K discretionary purchases/year (excluding travel)MVP: Trusted Adviceon products tailored to your needs by people and groups relevant to you. FB/TW posts from users you know

Company blog, FB, TW accountsWeek 8: Social ShoppingAffiliate program

SEO/SEM/SM

IE/FF/Chrome App StoresFB/TW posts from cartpop users you knowDevelopersMarketersBloggers and Media targeting customer segment

Retail marketing partners

IE/FF/Chrome teams

Affiliate Program ProvidersAffiliate program feesLicensingSubscription feesAd revenueAWS InfrastructureSEMEng & Marketing OpEx

Trusted AdviceShared WishlistShared PurchasesRecommendationsQ&AMBA students/prospectsShopping EnthusiastsPeoplePreference

Pat the ProfessionalBooksElectronicsPurchaseFavorite Vendors

Value Proposition: How to create Trusted Advice?

ExperimentsHypothesesSelf-selected people and groups join for shared advice relevant to their micro-communities

INCENTIVES: access (insider community), reciprocation (dialog, Q&A)

FIRST COMMUNITIES: MBAs, Stanford, shopping bloggersExpression of preference (tweet, FB, blog, Q&A, etc.)

INCENTIVES: reputation (likes/ratings, associations), ease of use (tools & templates)

FIRST FEATURES: Click to blog on products; auto-product researchBuy relevant items quickly & easily from vetted vendors

INCENTIVES: auto-analysis (price, tax & shipping comparison), implicit endorsement (insiders connected with product)

FIRST PRODUCTS: MBA Admission Books

Experiment 1: Community Recommendations (MBAs + Admission Books)

Experiment 1: Community Recommendations (MBAs + Admission Books)

Experiment 1: Community Recommendations (MBAs + Admission Books)

Expanding APRU (strawman numbers)Developing Community

Experiment 2: In-Context Shopping Recommendations

Pat the ProfessionalUpwardly mobile, $2-10K discretionary purchases/year (excluding travel)MVP: Trusted Adviceon products tailored to your needs by people and groups relevant to you. FB/TW posts from users you know

Company blog, FB, TW accountsAffiliate program

SEO/SEM/SM

IE/FF/Chrome App StoresFB/TW posts from cartpop users you knowDevelopersMarketersBloggers and Media targeting customer segment

Retail marketing partners

IE/FF/Chrome teams

Affiliate Program ProvidersAffiliate program feesLicensingSubscription feesAd revenueAWS InfrastructureSEMEng & Marketing OpEx

?Whats NextTHANK YOUTakeawaysWhat experience and expertise does the team bring to this problem?Large scale perspective - Former Windows Live manager experienced running multi-million user servicesRapid development - Engineer experienced in rapid development with open source community & web toolsEarly stage experience Serial web entrepreneur in niche lead gen business, 100K+ high quality UVs/monthData-driven design - Seasoned project manager focused on high speed research, analytics and usability

What are your unique insights into the problem?

What unmet needs that matter (offer the consumer tangible value) are you seeking to fulfill?

Who else is trying to do this, and what is unique/interesting about their approach, and what is deficient?

What is the scale? If you win this category, how big is the company?

Who wins and who loses if you are successful?