PERSONAL LIBRARIESWEEK 7

Revenue Model & Pivot

Reference Library Product Library

Week 6 Canvas

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 vendors

FB/TW posts from users you know

Company blog, FB, TW accounts

Week 7 Canvas

Affiliate program

SEO/SEM/SM

IE/FF/Chrome App Stores

FB/TW posts from cartpop users you know

DevelopersMarketers

Bloggers and Media targeting customer segment

Retail marketing partners

IE/FF/Chrome teams

Affiliate Program Providers

Affiliate program feesLicensingSubscription feesAd revenue

AWS InfrastructureSEMEng & Marketing OpEx

Week 6 Teaching Team Feedback

What category are you in?Do you need to pivot?  If so, where to?

How can you test these different categories instead of refining your existing software solution?  Do you need to setup simple landing pages for other

ideas, e.g., document management?

Pivoting this late can be really hard

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 vendors

FB/TW posts from users you know

Company blog, FB, TW accounts

Week 7 Canvas

Affiliate program

SEO/SEM/SM

IE/FF/Chrome App Stores

FB/TW posts from cartpop users you know

DevelopersMarketers

Bloggers and Media targeting customer segment

Retail marketing partners

IE/FF/Chrome teams

Affiliate Program Providers

Affiliate program feesLicensingSubscription feesAd revenue

AWS InfrastructureSEMEng & Marketing OpEx

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 vendors

FB/TW posts from users you know

Company blog, FB, TW accounts

Week 7 Canvas

Affiliate program

SEO/SEM/SM

IE/FF/Chrome App Stores

FB/TW posts from cartpop users you know

DevelopersMarketers

Bloggers and Media targeting customer segment

Retail marketing partners

IE/FF/Chrome teams

Affiliate Program Providers

Affiliate program feesLicensingSubscription feesAd revenue

AWS InfrastructureSEMEng & Marketing OpEx

Key Decisions Complete “Paper Libraries” campaigns

Since it’s a going concern, continue E245 course assignments (revenue model, financial model, etc.) with Peaya

Pivot E245 project to “Product Libraries”Like Peaya, users lookup, organize, annotate, and share their

product information. New concepts include automated comparison shopping and

appraisals of used items.

Drop other investigationsDocument management and verticals (legal, pharmaceutical)

aren’t panning out—too many competitors, too much complexity, we have little expertise, advantage or passion

Personal Libraries

Peaya conservatively pricedBelow niche competitors, above generalists

7M users2.6M active users last month0.25M paid users (~3%)22K new users / dayrevenue >1M / month

2K users0.4K active last week0.008K paid users (0.4%)0.005 new users / dayrevenue ~ 0.05K / month

Endnote Refworks Mendeley Bookend Peaya Evernote

$70-299.95 $100/yr $4.99/month $99 Freemium, $25-50/yr

Freemium, $45/year

Purchase Subscription Subscription Purchase Subscription Subscription

Connecting with Media Outlets

• Hypothesis:

We can develop a direct/SEO channel via bloggers & social networks our audience frequents

• Experiment

Contacted 45 selected bloggers to solicit feedback

Experiment

• Findings

4 positive responses, bloggers want: - Backlink to their blog- Reference chart vs. competitors

• Next steps:

Follow-up to generate reviews

ResearchGate

Academia.edu Epernicus

Posting to Forums manually is easy, but time consuming

Assumptions

Core Freemium (up to ~$180K)- 30x user growth (to 60K users)- 200x conversion (to 10%)- 3x price increase- 2 FT engineers @$40K/year

Ads (up to ~$30K)- $5-10 CPM- 4-10 hours in app- 60K user base

Content Sales (up to ~$30K)- 8-10% affiliate commission- 0.02-0.05% CTR- $15-50 mean purchase price

Personal Libraries could be $240K/year business in 2 years

Product Libraries

Sam the Shopper Upwardly mobile young professional (some Grad Students)Salary: $40,000-$250,000/year

Demographics• Male, aged 18-35• Minimum bachelors from expensive school

Motivation• Craves new tech products• Hates tedious work• Identifies as influencer for tech products• Fears being cheated online

Behavior• Spends 5 hour+ monthly hearing about

products • Shares online and in person about products

he lovesBudget• $2-10K+/year in discretionary online

purchases

“The XXX is awesome, I really want one. I know I just bought the YYY, but it’s probably time to upgrade.”

Value Proposition

Promise• Discover products recommended by respected

friends, available at the lowest possible price, either new from trusted vendors, or used from friends or local sellers

Differentiation • Only social shopping system spanning all major online

retailers, plus local used goods markets.

Evidence• Instantly research a million products with price

history, local availability

Cost• FREE for service• 5% to sell products, escrow service included

Risks• Privacy• Identify/Credit Card Theft• Malicious software on PC

Effort• Account sign-up• Friend adding• Install add-in

Product Libraries Customer Segment & Value Prop Hypotheses

Year

 

$ billion % change

   

2004 69

2005 88 27.5

2006 115 30.7

2007 137 19.1

2008 142 3.6

2009 (est.) 144 1.4

2010 (fore.) 161 12.1

2011 (fore.) 181 12.4

2012 (fore.) 208 14.7

2013 (fore.) 235 12.7

2014 (fore.) 261 11.1

   

SOURCE: Mintel/U.S. Census Bureau,  

Annual Retail Trade Survey, March 2010 

• Rebound in 2010• Double-digit growth projected• Total market size $200bn+ within 5 years

E-Commerce rebounding, heading to $200B+/year

Only category with sustained increase since 2006 is electronics and appliances.

Apparel and media are by far the most frequent

Electronics growing consistently; Apparel & Books top categories

Categories of internet purchase, 2006-09 

May-Oct

2006

Apr-Dec 2008

Apr-Dec 2009

Any internet purchase (all adults (aged 18+)) 54 59 59Apparel/accessories 37 41 54Books/music/video 41 42 39Computer products 20 19 18Toys/games 15 18 16Travel services/packages 19 18 16Electronics/appliances 11 13 15Tickets for events other than movies 17 17 15Footwear/shoes 13 16 14Banking services 12 15 12Sporting goods/equipment 9 13 9Tickets for movies 10 11 9Cosmetics - - 8Prescription drugs 8 9 8Automotive products 8 10 7Home furnishings 9 9 7Housewares 6 6 7Collectibles 8 7 6Food/perishables 7 6 6Giftware 7 7 6Office supplies 9 7 6Other health/medical items 4 5 6Credit cards 7 5 4Gardening 5 5 4Insurance 3 4 4Hardware 3 4 3Educational programs 4 4- Real estate/real estate services 1 2- Religious products 4 4- Stocks/bonds/mutual funds 4 4- Other items 22 23 23   SOURCE: Mintel/Experian Simmons NCS/NHCS, POP/Simmons, June 2010

Popularity of Price Comparison Sites (% used in last month) Male Female All

Yahoo! Shopping or a search on Yahoo! 19 12 15Froogle/Google Search 16 11 13BizRate 14 13 13PriceGrabber 14 8 11NexTag 10 9 9A search on Microsoft Bing 10 7 9Shopping.com 10 8 9AOL Shopping 11 5 8Smarter.com 8 3 5Thefind.com 5 3 4Shopwiki.com 5 3 4Dealtime.com 4 2 3Other price-comparison site 2 2 2

Any 47 37 42

SOURCE: Mintel, March 2010

Usage is widespread

Fragmentation may suggest a lack of differentiation

Men, 25-34-year-olds, and higher earners (more than $75K) are heavy users

Largest comparison shopping sites (~20M UVs) target men 25-34

Shopping tools are largely unsophisticated today

• Coupons, email, review sites dominate • Facebook and video growing in influence• Online ads are relatively weak

• Coupons, email, review sites dominate • Facebook and video growing in influence• Online ads are relatively weak

Shopping tools are largely unsophisticated today

Question 1: What Product Library features resonate best?

MVP Landing page tests

Sample: ~800 subjects, 70/30 male/female, average 2011 income ~$120K

Results: 197 UVs, “Price Recommendations” top choice (~13% CTR), “Don’t be fooled shopping online” (11% CTR)

Benchmarks

Affiliate Revenue - $0.20-$0.30 CPC in apparel/fashion

(Shopzilla)- 5-7% in electronics (Amazon)- 7-10% in digital goods (Amazon)

Comparison Shopping Add-in- $0.4 APRU for electronics (70 user sample)- $0.7 APRU for women’s furnishings- $0.25-0.30 CPC furnishings

Ads- $20-40 CPM premium ads- $3 CPM remnant

Subscriptions- $20-50/year Consumer Reports/Angie’s List

Question 2: What’s the best way to develop revenue streams?

Question 3: Do we go after men, or women?

Pat the ProfessionalSalary: $40,000 – 150,000/yearFinance, Consulting, Public Relations, MarketingKeeps up with trends in fashion and technology

Traits:• Gets ideas from blogs and shopping

websites • Values celebrity trends and friends’

opinions• Wants to buy high ticket items at lowest

price• Interested in shopping opportunities –

either being the first to have something, or getting an alert when a price drops

Purchase Power: • Spends $1,000 – 15,000 in online shopping

per year on discretionary items

Value Proposition• Promise: Save & hassle time

shopping online• Differentiation:

Discover online goods recommended by friends at the lowest possible price from unspammy vendors

• Evidence: Price recommendations, social features

• Cost: Free to user• Effort: Download an install,

initially requires chrome• Risk: Concerns about privacy,

browser crashing, biased search results, valuable use of time

Revised Customer Segment & Value Prop HypothesisBased on ~20 interviews, ~800 subject MVP tests, market & competitive research

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 vendors

FB/TW posts from users you know

Company blog, FB, TW accounts

Affiliate program

SEO/SEM/SM

IE/FF/Chrome App Stores

FB/TW posts from cartpop users you know

DevelopersMarketers

Bloggers and Media targeting customer segment

Retail marketing partners

IE/FF/Chrome teams

Affiliate Program Providers

Affiliate program feesLicensingSubscription feesAd revenue

AWS InfrastructureSEMEng & Marketing OpEx

Next Week:

Experiment 1: Comparison Shopping Add-in for Chrome

http://wantio.com

Thank you

Significant value in online distribution for e-commerce