GiftlessWeek 6 (aka: One extraordinarily tough week)

Paul HayesAdam Neumann

Facebook ads from May 5 - May 12

Poor affiliate enabled CTR

CPA (signup) per campaign

Star wars ad - $2.20Generic ad - $29.97

Geek ad - $30+Hackernews YC - Free but not scalable

Signups are NOT customersLTV = $0

Signup CPA - $2.20Average commission per sale 5%

Break even point - $44.00 worth of goods sold IF conversion rate of signups to customers was 100%

Estimated conversion rate - 5% (best case scenario)Break even point - $880 worth of goods sold per

customer

Do the maths

ProsAverage User session is 3 minutes+

Click throughs are approx 5%Interest based ads

Interest based product discovery validated

1 > Viral co-efficient > 0Karma has been acquired by Facebook

ConsMales buy last minute regardless of

remindersPeople only buy a small number of gifts

a yearCPA (far)> LTV

Do we have a business?

Can we get up and to the right?

Gift Discovery

Pivot OptionsCustomer Segment Pivot - Focus on females

From B2C - B2BOnly recommend Affiliate enabled products

Focus on USA

Our Conclusion

We are trying to fit a square peg into a round hole

Simple (Pool money - give a prepaid American Express card)

Viral as a core user case scenariogroup purchasing (more incentive to share)

Giftiki pays a $1 user get user incentiveGift Card Market

Learn from our Competitors

Simple Viral as a core user case scenario

Photo CardGift Card Market

Learn from our Competitors

Learn from our Competitors

Simple (Give free $10 gift cards)Viral as a core user case scenario

group purchasing of Gift CardsGift Card Market

Wrapps X-Factor

Leverages companies pre-existing customer databasePartners pay the user get user incentive

Friend to friend marketing platformLead Generation for Companies

Another study by Sage Pay, revealed that while on average 7% of visitors to an online store make

a purchase, when directed from social media network, the percentage of visitors who will go to

the transaction section goes up to 71%. Social proof is even more important for e-commerce, as

Simon Black, managing director at Sage Pay, says: “The modern shopper often looks for

reassurance from a positive review, a special offer to make it more affordable, inexpensive

delivery options and a quick, easy and secure way to pay.”

Wrapp went ViralGiftiki and Yougift are adding users fast

Simple Viral as a core user case scenario

Group purchasingFacebook Wall Posting & Lots of it

Gift Card Market

Common Themes

Leverages companies pre-existing customer databaseCompanies pay the user get user incentive

Friend to friend marketing platformLead Generation for Companies

Wrapps X-Factor

What core viral feature can we add that:

Hasn’t been done by our competitors (or preferably by anyone)Is social, viral, fun and awesome!

Is an activity people already do offlineGet’s better the more people you invite!

Fills the missing gap of a group purchased Gift Card?

(Offline) Group Card (online) Group Photo eCard

Everybody signs with a messageEverybody signs with a

single photo and a message

The Frankstein Pivot

Photo eCard

- Group Photo eCard

+ Group Purchasing

of Gift Cards

+ X Factor

eReflectHigh CPAHigh LTV

15,000 Buyers20,000 Prospects

VinspiHigh CPAHigh LTV

Getting customers is one of their biggest problems

USA Gift Card Market (billions)

GiftlessFeedback Most Welcome :)

Paul HayesAdam Neumann