Lean Startup Machine July 2010

The Mob

Problem for Consumers “ Group buying” doesn’t empower individuals to drive purchasing decisions

“ Group buying” doesn’t empower individuals to drive purchasing decisions

Problem for Retailers Retailers and manufacturers have capacity for bulk sales

In-Going Assumptions Consumers Retailers

Validated Assumptions Consumers Retailers

Lessons Learned Middle-market retailers with web presences will be our target market Smaller retailers are more flexible and more eager to move merchandise Focus on smaller businesses High volumes are needed to provide discounts Some retailers are willing to provide discounts at low volumes Allow minimum size of Mob to be low List products exclusively because it would be too difficult to compare services Services can be “ product-ized” when listed specifically for a provider (NYSC vs. Equinox) Include both products and services Retailers are sitting on inventory that they are eager to move Many retailers need to work with their suppliers to fulfill large orders Target manufacturers and fulfillment centers to fill Mob orders Assumption Pivot Lesson

Smaller retailers are more flexible and more eager to move merchandise

Focus on smaller businesses

Solution: The Money Mob Consumers Retailers

Consumer Value Proposition Consumers decide what to buy and what to pay Join : commit to minimum price or bid higher Create : start a new mob at YOUR price Choose : Find the exact item consumers want What to Buy What to Pay

Choose : Find the exact item consumers want

Retailer Value Proposition The key elements of the business value proposition Sell high inventory while selecting from multiple price points Gain new customers Market to interested consumers The Money Mob connects retailers with particular Mobs and takes a percentage fee Offer 1 : 100 people at $X Offer 2 : 35 people at $Y $ # of Customers Value Proposition Price Points

The key elements of the business value proposition

Sell high inventory while selecting from multiple price points

Gain new customers

Market to interested consumers

The Money Mob connects retailers with particular Mobs and takes a percentage fee

The Money Mob MVP Competitive advantage : consumer-driven business model Monetization : Percentage fee for connecting retailers with particular Mobs Marketing : viral marketing inherent incentivized, promotional Mobs, posting on relevant forums, and partner with other discount sites Key Elements Current MVP

Appendix

Consumers’ Willingness to Prepay ~60% of respondents indicated they were strongly willing to prepay to capture a deal

How People Find Deals Online Group buying is the most popular way for people to find deals online

Deal Sharing Among Consumers 67% of respondents share deals with their friends at least some of the time