Inbound Marketing for Very Small Businesses

Bizyhood makes very small businesses stand out in today’s economy.

Bizyhood reinvents Main Street by putting the right small businesses in front of the rightpeople at the right time.

The Very Small Business (VSB)Marketing Dilemma

Advertising is the wrong product for VSBs

VSBs want to close deals in minutes or days.

Most VSBs want lead generation

VSB’s Need Lead Generation…

• 60% of VSBs do not use a website for promotional purposes.

• VSBs customers overwhelmingly come from a small geographic radius.

Their need is a local lead generation engine that they can pay small amounts for on a regular basis.

… Not Branding

Inbound Marketing for VSBs include:

• Lead Generation: Inbound requests for their product or service

• Lead Nurturing: Following up with new requests, and offering existing customers reasons to come back.

How to Succeed with VSBs

Don’t create a Marketplace from scratch

Focus on Lead Generation/Nurturing vs. Advertising

Implement a Sales Strategy that Leverages an Existing Channel

Introducing BizyhoodA bottoms-up, lead generation platform, powered by Local Digital Publishers.

• VSB gets a unique page on a local daily news site with authority.

• VSB can be “found” via local search.

• Lead generation options – Calls to Action, Events, Promotions.

• Self-service dashboard to manage lead generation, nurturing, content creation. An example Business Page on an LDP site

Traction

• Monthly Revenue growing 30% m/m since October 2015.

• Monthly VSB signups are averaging 300/mo

• 33 paying businesses as of Oct 2016.

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250

500

750

1,000

1,250

1,500

1,750

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Monthly Signups

Monthly Revenue

Total Signups: 3,381

Total Revenue: $7,735

Bizyhood Product OverviewWordpress PluginMultiple pieces of functionality that can easily be embedded into an existing Wordpress site. Widgets for Search, Promotions, Events and more. Business Directory, Signup flow, credit card processing all included

Mobile ManagementBusinesses can access their dashboard via mobile for “On the Go Management” of their business details and to communicate with customers

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ConsumersBusiness Owners

Why Local Digital Publishers (LDPs)The publisher’s existing marketplace combined with Bizyhood’stech platform creates instant value to publishers, local businesses and consumers.

• Only growing segment of the publishing industry over past 10 years.

• Focuses exclusively on local community

• Needs additional revenue beyond display ads.

• Users engage 10x longer on publisher sites when they are looking for something.

• > 70% of all visitors are on mobileredbankgreen.com

(Red Bank, NJ) bensonhurstbean.com

(Brooklyn, NY)racinecountyeye.com

(Racine, WI)

Case Study – Racine County Eye• Launched January 2016

• Generating $750/mo. recurring revenue and growing

• Organic search bounce rate 25 points lower than Social bounce rate

• Monthly visitors up 30% m/m

• Now getting annual Business Page subscribers as well as monthly

• 2 new “local features” launching that are based on Bizyhood features

racinecountyeye.com (Racine, WI)

Market Opportunity

Local is HUGE!

• There are over 10K1 local publishing outlets like Racine County Eye in the US, serving over 22M2

very small businesses (VSB). Each publisher represents ~$60K/yr revenue minimum.

• Local digital publishing is a growing market. We have direct access to 300 of them already.

• Each LDP typically serves a community with 25K –75K residents and 2,000 VSB’s.

$12BServiceable

Addressable Market[SAM]

$133BTotal Addressable Market [TAM]

1: Online Newspaper Association 2: sba.gov

Go-To-Market: The LDP Channel

• We provide training to existing LDP sales teams.

• "Launch" package helps them get the word out in their community.

• Training for publishers as well to learn how to leverage existing content with their new capabilities.

• Develop "combo" packages to upsell.

redbankgreen.com(Red Bank, NJ)

bensonhurstbean.com(Brooklyn, NY)

racinecountyeye.com(Racine, WI)

Projected Timeline

30 LDP’s, 1,000 VSB’s, 30 payingFocus is to build the “cookbook” using a small subset of this group (4-5 publishers in different market/segments).

Go Deep (60 LDP’s, 10K VSB’s, 500 paying)4-5 markets with “target” penetration of 100 paying businesses

400 LDP’s, 40K paying VSB’sWe already know the next 270 publishers – primarily from the LION association (digital-only publishers). This is the early scale period.

4K LDP’s, 400K paying VSB’s)Next, we hit the mainstream. These publishers are a mix of print and digital today, and the winners will move to primarily digital by 2020 and will need our platform to win.

Revenue

2016 2017 2018 2019 2020 2021

$10K $2M $12M $48M

Customer Development well under way. Early revenue, and on path to Product-Market Fit.

$120M$200K

Bizyhood’s focus is on the VSB first and is the only platform to leverage an existing and local sales channel and marketplace.

Competitive Landscape

Community & Geographic Focus

Local Geography that services 25-75K readers

Global, with an algorithmic News Feed that Facebook controls, not the publisher or business

Global, with an algorithmic search engine that Google controls, not the publisher or business

Super-hyperlocal. A neighborhood that is usually no more than 750-1000 households

Creator of Local Content

Curator of Local Content

Revenue Model

Publisher, User and Business

User and Business User

Publisher and Algorithm

Algorithm Algorithm & Volunteer Leaders

Monthly subscription from VSB via the LDP for Lead Generation

Advertising None to date

Everyone

Algorithm

Advertising

Who is Bizyhood?

Scott BarnettFounder

• Serial entrepreneur, Software Developer, Product Manager, Sales/ Marketing Exec

• AT&T Bell Labs, Transarc (acquired by IBM), Novera(acquired by TSG Commerce), eB2B, Atomica/GuruNet(public), BEA, GE (helped start new battery business)

• Started and boot-strapped Bluenog Corp. in 2006 (raised $4M VC)

• CEO, Evident Software, 2009 (raised $1M)

• Founder, Bizyhood - 2012

• MS in CS, Columbia University

• Architect/CTO with deep experience leading technical teams, software engineering, as well as broad systems knowledge

• Navisys (acquired by Accenture), Cybershift(acquired by Sumtotal Systems), Opencrowd, Bluenog, Amazon.com

• Co-founder, Bizyhood - 2012

• BS in CS, Rutgers University

Eugene FabrikantCo- Founder

Advisors

Jared RanereGrowth Partner, Thrv

John PiekosVP, EngineeringVoltDB

25+ years experience in enterprise IT. Previous leadership positions at Progress Software, EasyAskand Novera.

5 years in Business Development, Product Management for Outside.in/Patch.Spyros

WordpressDeveloper

KarenSearch

KrisDeveloper

Bootstrap to Growth

Funding Needs: Raising $1M in Q4 ’16 - Q1 ’17

• Bootstrapped our way to 35 LDP and 1200 VSB (33 paying).

• Next major goal – 100 LDP with 100 paying monthly VSB each, generating $500K/mo. in revenue.

• Funding provides 18 months of runway (increases monthly burn from $15K/mo to $60K/mo.)

1

Goal$1,400,000

Invested To Date

$400,000Convertible Note

Founders & Family

$

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Contact Info

Your Logo

Here

facebook.com/bizyhood

twitter.com/bizyhood

info@bizyhood.com

angel.co/bizyhood

(732) 972-8015

Appendix

Appendix - Testimonials

“We typically have 30-40 advertisers on the site at any one time. However, there are approximately 2,500 small businesses in our market and Bizyhood gives us options that might better fit their needs and get them on the site."

Mary MannPublisher, Village Green

Maplewood, NJ

“I’ve been reporting the news in Red Bank for over 10 years. The restaurant/food scene in town is strong, so we added a section of our site specifically to restaurant reviews. I’m consistently recognized as the leading authority of things going on in Red Bank, but not as much as I’d like online. Bizyhood is helping make me the authority online as well as off.”

John WardPublisher, Red Bank Green

Red Bank, NJ

Appendix - Architecture

InboundOutboundSurfaced on Publisher’s site and mobile app

Lead Generation

Near Me Search Results

News Reader

User Engagement

Push Notifications (user preferences)

Bizyhood Repository

Places(Biz Directory)

News

Promotions & Services

Events

Bizyhood Content

Publisher Content

Local Business Content

Readers Content

Local SEO’s

An Information Pipeline based on local content

Note – see Slide 26 for a list of the content we get from each

Appendix - ArchitectureList of Data Points Collected

BUSINESS: Name/Address/Phone, Category, Description, Hours, URL, Social Media

USER: Name/Email

Local News, Events, Promotions (all geo-tagged)

Photo Gallery, Events, Promotions, Blogs, Response to Feedback, “Wall” posts

Customer Feedback

Name/Address/Phone/URL/Category

Appendix - Business Model

Publishers offer VSB’s advertising capabilities only.

LDP’s provide valuable local news to residents of their community.

Readers click on ads and engage with businesses.

Appendix - Business Model

Bizyhood stores all data and interactions. Processes

subscriptions. Splits VSB revenue with LDPs.

VSB gets their own Business Page and can customize with content, promotions, calls to action.

LDP’s provide valuable local news, information and search to residents of their community.

Appendix - Business Model

Bizyhood stores all content and interaction.

Support for both Web and Mobile.

Publisher becomes a local platform for all local interaction, lead generation and nurturing.

VSBs leverage the LDP’s local reach to engage with current and prospective customers.

Readers find what they need via search and get promotions they want directly from VSBs.

LDP’s provide valuable local news, information and search to residents of their community.

Appendix - Signup and Revenue Plan

1. LDPs include the Bizyhood functionality in their Price Book and can sell it directly to VSBs. As part of Bizyhood, they get all the businesses in their community on their site from Day 1, with each business getting their own URL on the publisher site.

2. VSBs also have the ability to sign up themselves via a self-serve page, e.g. http://racinecountyeye.com/dirsignup.

3. VSBs choose a free tier (basic info on their Business Page) or a premium tier (basic info + lead generation + Local SEO + Events + Promotions). Upgrade is simple and via credit card, all handled by Bizyhood

4. Bizyhood collects all monthly revenues. Issues revenue share to LDPs at the end of each month

5. VSBs get a dashboard to manage their listing, track analytics, view reports and follow up with leads

• LDPs already have a marketplace, we don’t need to create them from scratch

• Partnering with local story tellers get local benefit and curation

• Open platform allows for Local SEO benefits

• In local, we turn the “law of large numbers” upside down

• Leads vs. Branding

• We’re the only platform that focuses on the VSB primarily. The others focus on the consumer.

Appendix - Why Bizyhood Will Win

Community Curation

Algorithm Only

Closed Platform Open Platform

Appendix - Competitive Info

1. Google announces text messaging in Google Ads for Business Owners

Text messaging is huge, we’ll have a “dashboard” of all messages which is the lightweight CRM the business owners need. And it can be used all the time, not just with an Ad.

2. Facebook announces recommendations and appt. setting for business owners

Taking on Yelp, but in their own walled garden. Still, a great idea, and we’re focusing on the “your own page on the publisher site” idea that Facebook has made popular (4M business owners have their own page).

Their #1 focus is the consumer. Our VSB focus will be an advantage

3. Nextdoor adds Business Profiles

Finally a way for local businesses to be involved, but still no revenue model. And not focused on the business owner.