something-something-something.com

Formerly “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 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

Developers

Marketers

Bloggers and Media

targeting customer

segment

Retail marketing

partners

IE/FF/Chrome teams

Affiliate Program

Providers

Affiliate program fees

Licensing

Subscription fees

Ad revenue

AWS Infrastructure

SEM

Eng& 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 accounts

Week 8: Social Shopping

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

Teaching Team

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

Mentors

• What 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

Demographics• Male/female, aged 18-35• Minimum bachelors from expensive schoolTraits:• Ideas from blogs & shopping websites • Values celebrity trends & friends’ opinions• Wants high ticket items at lowest price• Event-driven shopper—new release or sale

Motivation• Craves new products• Hates tedious work• Identifies as influencer among friends• Fears being cheated online

Behavior• Spends 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 it’s probably time to upgrade.”

Source: US Bureau of Labor Statistics

~5.9M “Pat the Professionals” in USDrawn from top 1/3 of 17.8M frequent online shoppers17.8M 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 ratio

Customer Segment: US distinctly different from rest of world in key areas

Comparison shopping and aggregators less popular in US than in rest of world

US most likely to share positive experiences online vs. rest of world

Customer Segment: Reviews & popularity highly disproportionate across products

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 market- Referrals major influencer of purchase decisions in $10B/year

market- 7M 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 Netflix- Can develop strong partner relationships monetizing remnant

inventory

Category 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 market- Referrals major influencer of purchase decisions in $10B/year

market- 7M 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 Netflix- Can develop strong partner relationships monetizing remnant

inventory

Phone call with founder Joe Einhorn

• 10,000 users, 100 million objects in database

• Vision: 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 / buys

• Most content is given free to user (without sign up), Avg unique visitor views 20 pages, priority is to get users viewing & publishing on the site

• No formal user acquisition process, want to keep user visits organic

• Early adopters / active users rewarded with titles, ex: editor in chief, art director

• Partners:

– 1. Media companies, journalists who discover cool things

– 2. Stores that sell the same or similar items

TheFancy.com : People connected via Objects

11%

73%

8%

8%

Average Salary Range

0 - 20,000

20 - 40,000

40 - 60,000

60 - 80,000

80 - 100,000

100,000+

Finance, Consulting

11%

Law73%

Engineering8%

Education8%

Profession or Field of Study

Male36%

Female64%

Gender

22-2558%

26-3036%

30-353%

35-403%

Age

Customer Segment: Stanford Survey Results (n=40)

Less than Once a Month

27%

Once a Month

30%

2-3 Times a Month

24%

Once a Week

8%

2-3 times/ wk

11%

How Often Do You Make Purchases Online?

389 395 320 242136

1172

220

Total Average = $2,900

Average Amount Spent in Past Year

Customer Segment: Stanford Survey Results (n=40)

People spend more than they think

Which Features Are Most Useful When Shopping Online?

What Are Your Biggest Concerns With Online Shopping?

3428

12 136

111

Why Do You Shop Online?

27

6 8 10 103

Browsing shopping websites

Blogs or trend sites

Magazines Friends & family

See in person

Other

Where Do You Find Products to Buy?

Customer Segment: Stanford Survey Results (n=40)

People love a discount, but aren’t 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 accounts

Week 8: Social Shopping

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

Trusted Advice

Shared Wishlist

Shared Purchases

Recommendations

Q&A

MBA students/prospects

Shopping Enthusiasts

People Preference

Pat the Professional

…

…

Books

Electronics

Purchase

…

Favorite Vendors

…

Value Proposition: How to create “Trusted Advice”?Ex

per

imen

tsH

ypo

thes

es

Self-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 bloggers

Expression 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 research

Buy 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 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

?

What’s Next

THANK YOU

Takeaways

• What experience and expertise does the team bring to this problem?– Large scale perspective - Former Windows Live manager experienced running multi-million user services– Rapid development - Engineer experienced in rapid development with open source community & web tools– Early stage experience – Serial web entrepreneur in niche lead gen business, 100K+ high quality UVs/month– Data-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?