Origins io columbia univ jan 2014

Team 6Interviews today: 5Total interviews: 49

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INTERVIEW BREAKDOWN Students Teachers Parents Administrators Tech Expert TOTAL %

Day 1 8 3 3 1 0 15 31%

Day 2 3 4 4 1 0 12 24%

Day 3 11 2 0 2 2 17 35%

Day 4 0 1 4 0 0 5 10%

TOTAL 22 10 11 4 2 49 -

% 45% 20% 22% 8% 4% - -

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DAY 1

(Initial idea)MARKETPLACE

Key Partners

•Analytics•Cloud Provider•Development Resource•College / SAT Prep Centers

Key Activities

•Data Maintenance (Pathways)•Web Maintenance & Development•Relationship forming (Marketplace)•Grassroots evangelism

Value Propositions

Simple uncluttered interface

•Discover career options; self assessment•Research career options•Career pathways•Career planning platform•Connect to mentors & coaches (marketplace)

Flow:1)Search / Test2)Career Options3)Pathways4)Coaching / Mentoring5)Facility for managing information

Customer Relationships

•Self Service•Community forums•Sales Pitches > Contracts•Progress Reporting•Drip marketing campaigns (marketing automation)

Customer Segments

•High School Students•School District (administrators, teachers, guidance counsellors)•Parents of Students•Career Coaches•Mentors

Key Resources

•Web & Mobile Engineer•Offshore Dev Team•UX/UI Design•Open APIs (Data)•Academic expert / Occupational therapists•AWS / Cloud infrastructure•IP (domain, trademark/servicemark, incorporation)

Channels

•Test prep centre partners•Parent magazines advertising•Direct to user (individual/self serve website)•Parent Teacher Meetings•Sales presentations to teachers & school admin•Presentations at conferences/ white papers•Online advertising

Cost Structure• Technology – Engineering & Platform• Customer Acquisition

Revenue Streams2 options: •Freemium – Search = Free; Pathways = Paid•Free – Advertising & Sponsorships

Value PropositionsSimple uncluttered interface• Discover career options; self

assessment• Research career options• Career pathways• Career planning platform• Connect to mentors & coaches

(marketplace)Flow:1. Search / Test2. Career Options3. Pathways4. Coaching / Mentoring5. Facility for managing information

Customer Segments

• High School Students

• School District (administrators, teachers, guidance counsellors)

• Parents of Students

• Career Coaches

• Mentors

DAY 1

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DAY 1 DAY 2 = PIVOT!

HYPOTHESIS ACTIONS RESULTS ITERATE

Marketplace for HS students and mentors = Value

Interviewed students, teachers, and parents.

FALSE(1) Security concerns(2) No clear

incentive for mentors

Drop it.

Simple career search and planning = Value

TRUEStudent engagement and ownership are the real needs.

Focus on it. Introduce ELI5 style.(Explain Like I’m 5)

HS Guidance counselors = Channel

FALSEMostly takes care of logistics.

Drop it.

Key Partners

• Cloud Providers

• Analytics• Development Resource• College / SAT Prep

Centers

Key Activities

• Algorithm development• Compose ELI5 renditions

of raw data• Web Maintenance &

Development

• Data Maintenance (Pathways)

• Relationship forming (Marketplace)

• Grassroots evangelism

Value Propositions

• One step career path search

• Career planning platform

• Natural language interpretation

• De-cluttered interface

• ELI5 style

Simple uncluttered interface• Discover career options;

self assessment• Research career options• Career pathways• Connect to mentors &

coaches (marketplace)Flow:1)Search / Test2)Career Options3)Pathways4)Coaching / Mentoring5)Facility for managing information


GET: • Grassroots evangelismKEEP: • Gamification & ELI5• Drip marketing

campaigns (marketing automation)

GROW: • Referral competitions

• Self Service• Community forums• Sales Pitches > Contracts• Progress Reporting

Customer Segments

• High School Students aged 14-18 with household incomes of $40,000+

• School District (administrators, teachers, guidance counsellors)

• Parents of Students• Career Coaches• Mentors

Key Resources

• Full Stack Engineering Team (UX/UI, Cloud, Mobile, Web)

• Writers• IP (algorithm)• Open APIs (Data)• Web & Mobile Engineer• Offshore Dev Team• Academic expert /

Occupational therapists• AWS / Cloud

infrastructure

Channels

• High School Teachers• Direct to user• Test prep centers• Parent magazine ads• Online ads

• Parent Teacher Meetings• Sales presentations to

teachers & school admin• Presentations at

conferences/ white papers

Cost Structure• Technology – Engineering & Platform• Customer Acquisition• Writers

Revenue Streams2 options: • Freemium: Free with ads. Pay to remove ads.• Free – Advertising & Sponsorships

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DAY 2 DAY 3 = some iterations


Generates profit 100% from advertising

Crunched numbers. FALSELoss even at target market share

Come up with a new revenue model.

All HS students need a career search tool.

Interviewed more students and teachers.

FALSEFound no interest from Freshman/Sophomore.

Narrow our archetype to Juniors and Seniors.

ELI5 style would improve student engagement.

TRUEPositive feedback

Keep it.

CHANNELS, GET, GROW, $

High School Teachers + Direct-to-User

Student runs free searches

Create account and save searches

$10 or refer 10 friends to unlock more features

Referral*See $ numbers at the end of presentation.

Key Partners

• Universities• Test Prep Centers• Cloud Providers

Key Activities



Development

Value Propositions

• Career discovery - simplified

• Career planning - gamified



• ELI5 style


GET: • Grassroots evangelism• Online and print media

advertisingKEEP: • Gamification & ELI5• Drip marketing



Customer Segments

• High School Juniors & Senior aged 16-18 who are unsure of their career/college choice

Key Resources


• Writers• IP (algorithm)• Open APIs (Data)

Channels

• High School Teachers• Direct to user


Revenue Streams• Freemium: Free with ads & hidden content. Pay to remove

ads and reveal additional content• Partner Advertising - $11.4M (1% of College Adv. Spend)• Subscription - $2.1M (25% of Target as paying)

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DAY 3 DAY 4 = $ Day


Users like our new freemium referral model.

Interviewed students.

TRUEPositive feedback. Received some idea of WTP.

Keep it.

Our cost estimations make sense.

Validate the cost estimations with tech experts

TRUECost estimates are in line with industry averages.

Keep it.

Market size estimation

Launch a targeted ad campaign on Facebook.

See results at the end of DAY 5.

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USER FLOW• Sketch user flow chart• Start building wireframe

Key Partners


Key Activities



Development

Value Propositions


• Career planning - gamified



• ELI5 style






Customer Segments


Key Resources



Channels



Revenue Streams• Freemium: Free with ads & hidden content. Pay to remove

ads and reveal additional content• Partner Advertising (Colleges spend 1.1bn annually in adv.)• Subscription - $2.1M (25% of Target as paying)

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DAY 4 DAY 5 = !!!

• Gathered feedback from more students DAY 4 morning. Identified 0% interest!!

• “Do we have a business?!”• “Are we focusing the wrong customers?!”• “Should we go for college students?!”• “Who are the competitors in that market?!”?

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DAY 4 DAY 5 = !!!

• Reassessed the situation.• Found:

• The high school we interviewed has highly competitive admissions process, high graduation rate, etc.

• We were interviewing the wrong archetype!

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DAY 4 DAY 5 = GAIN!

• Archetype hypothesis confirmed!

• Our primary archetype is a high school junior or senior who is UNSURE of his/her future.

Key Partners


Key Activities



Development

Value Propositions




• ELI5 style

• Career planning – gamified (Postponed from MVP)






Customer Segments


Key Resources



Channels


Cost Structure• Web/Algorithm Development – $51k (One-time)• Hosting and Maintenance – $70k (Ongoing per year)• CAC – $4.4m (Ongoing per year)• Writers – $25k (Ongoing per year)

Revenue Streams• Freemium model: Pay/refer friends to unlock features.• Subscription – $6.5m (25% of target as paying, per year)• Advertising – $60k (based on target page views, per year)• Partner Advertising (Colleges spend 1.1bn annually in adv.)

MARKET SIZEFACEBOOK AD RESULTS• Pay-per-click campaign• Target: U.S. high school juniors and seniors (age 15-18)• Landing page: www.origins.io

We’ve collected 124 email addresses in < 48 hours!

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2

3

MARKET SIZE

1 HS Juniors & Seniors = 6.8M

2 38% showed interest ina search tool = 2.8M

3 Capture 25% of this market= 646K

REVENUE ESTIMATION

TOTAL ESTIMATED ANNUAL REVENUE = $10 x 646k = 6.46m

COST ESTIMATION (in 1,000s)

SUNK ONE-TIME COSTS

Web/Algorithm Dev 41(30 days, 5.3 offshore staff, pricing average $41 per hour)

Writers 10 (1,000 hours @ $10)FIXED COST (PER YEAR)

Web/Algorithm Maintenance 60 (1.5 offshore staff per year)Writers 25 (0.5 writers per year)

VARIABLE COST (PER YEAR)

Hosting 11 (Linear cost directly proportional to traffic/customer count)

CAC 4,414 (Results based on CTR of Facebook campaign)

TOTAL ESTIMATED ANNUAL COST = 4.51mTOTAL ESTIMATED ANNUAL PROFIT = ~2m

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DEMO

demo.origins.io

http://demo.origins.io/

NEXT STEPS• Improve demo. Launch video ad.• Launch Kickstarter.

Origins io columbia univ jan 2014

Technology

Transcript of Origins io columbia univ jan 2014