2012 online roadmap final v5

2012 Growing Online – David Wolfe

Online – objectives
• Develop a new customer acquisition channel
– High volume
– Cost effective
– Target demand against existing content
• Sell a standardized set of products online
– Learn how to resale products
– Sell online
– Create content to support emerging search demand
• Improve key elements of the user experience

2

Online – objectives & key hypothesis
– Acquisition hypothesis  We can acquire visitors to our properties cost effectively
– Market size hypothesis  Meaningful online demand for our product exists
– Activation hypothesis  We can persuade visitors to trial our content products online

‒ Revenue hypothesis  We can persuade trialers to purchase products online
‒ Retention hypothesis  We can retain our online subscribers over time
‒ Resale hypothesis  We can sell our products to more than one individual

• Improve key elements of the customer experience
‒ Referral hypothesis  We can persuade subscribers to refer others to use our products
‒ Delight hypothesis  We can provide an engaging experience to our users

3

Online – validating hypothesis with metrics
‒ Acquisition hypothesis  # visits, eCPC
‒ Market size hypothesis # of sources, size of source
‒ Activation hypothesis  visit/trial conversion rate, avg(trial length), # trialers

‒ Revenue hypothesis  trial/subscriber conversion rate, avg(revenue per subscriber),
# subscribers
‒ Retention hypothesis  avg(subscriber churn)
‒ Resale hypothesis  avg(# of subscribers per product)

• Improve key elements of the customer experience
‒ Referral hypothesis  avg(# referrals per subscriber)
‒ Delight hypothesis  net promoter score

4

Online – roadmap
Q1 Q2 Q3 Q4
Create Online Optimize & Grow New Distribution- New Distribution-
Focus

Apps & Mobile Partner Platform

• Redesign and enhance • Continue re-designing core • Distribute content & • Create affiliate
primary user experience features and functionality. services via marketplace
Objectives

• Test SEM, FB, & LinkedIn • Implement test • Open Social & FB •Syndicate content
as key traffic sources frameworks. applications
Recommendation Engine • Affiliate/partner portal
• Identify & curate key • Mobile experiences
content products • Impact all core metrics

Home Page  XHTML/WAP application  Partner/affiliate portal
 A/B testing framework
 Event Stream  IPhone Application  Co-branded experience
 Price sensitivity testing
Approach

 Trial experience & wizard framework  Open Social app(s)  Partner sign-up
 Company & Industry profiles Recommendation engine  FB app(s)

 Delivery vehicle management Referral tools  API

 Purchase  Personalized email campaigns
(win back, upsell, new product,
etc.)

5

Online – roadmap/hypothesis mapping
New customer acquisition channel Sell standardized products Improve user exp

Acquisition Activation Revenue Retention Resale Referral Delight

Logged out Landing pages &
website initial trial exp

Q1 – ** acquisition Trial wizard Product Product Product Core stream
create marketing discovery discovery discovery experience
online
** acquisition Purchase, Delivery Core stream
marketing + SEO Delivery Pref preferences experience
frame
** acquisition A/B testing frame- Price point A/B Referral tools
marketing work testing
+ APIs
Q2 - ** acquisition ** trial conversion Upsell Recommend Recommend
optimize marketing testing messaging engine engine
system
** acquisition ** trial conversion ** price point Multi-user
marketing testing testing account mgt,
+ Intelligent CRM Win-back
** acquisition ** trial conversion Mobile web Mobile web
marketing+ Open testing
Q3- apps Social apps
& mobile
** acquisition ** trial conversion Mobile – Mobile – Mobile –
marketing testing native app native app native app
6

Current client acquisition & content investment model

8

Online client acquisition & content investment model

9

Online/Direct Sales – Customer Lifecycle Comparison
Direct Sales Online

Brand and Lead Driven Online Demand Driven
High quality lead-driven clients from networks, channel SEM/SEO exposes our current coverage universe to interested
partnerships, etc. Focus on developing value proposition searchers, funneling them to keyword-driven landing pages.
and branding Additionally, Google trends & insights exposes emerging
demand for new content products (new coverage)

Acquire Customer for Free Trial Acquire Customer for Free Trial
BD can create highly-directed, customized trial coverage for Begin customer on time-limited free trial, no new
clients. Discovery is done through conversation and companies/topics available – 0% cost trial model
solution-building

Prove Value Prove Value
Persistent monitoring of trial by BD, coverage quality Recommend additional products and automated
monitored by Operations. Coverage changes frequently. monitoring of usage patterns. Present customer with
Begin discussing contract terms leading towards … milestones leading towards…

Invoice Get Payment Information
Contract negotiation concludes and often quarterly to Customer enters credit card payment information into site –
year-long contracts are executed self-service of their news stream

Relationship Maintain and Improve Value
Continue focusing on high-touch relationship through Use brightwire.com to continue upselling user, provide
Client Development team, upsell and improve value through content and recommendations
directionality of coverage

10

Online growth phases
1. Amortize existing content – Q1/Q2
– Form “newswire” (21) products based upon existing high flow content opportunities. Sell
them online. Drive new traffic by purchasing associated key words
– Sell existing company tickers (264) online. Drive new traffic by purchasing related keywords

2. Expand coverage universe – Q3/Q4
– Identify top 10 searched for industry/region combinations we currently do not cover.
Modify GMA coverage. Sell them online. Drive traffic by purchasing relevant key words.
– Identify top 100 searched for companies we do not currently cover. Modify GMA coverage.
Sell them online. Drive traffic by purchasing relevant key words.
– Identify top 10 searched for financially focused topics we do not currently cover. Modify
GMA coverage. Sell them online. Drive traffic by purchasing relevant key words.

11

Existing resalable newswire products (21)
Newswire name Newsflow: Last 90 Days Newsflow: Daily Average
Europe 16,999 188.9
Asia Pacific 11,665 129.6
Finance 10,688 118.8
North America 9,100 101.1
Europe Finance 5,984 66.5
Materials & Natural Resources 5,557 61.7
Consumer 5,468 60.8
Technology 4,746 52.7
Latin America 4,230 47.0
Industrials 4,135 45.9
Energy & Utilities 4,098 45.5
Media & Telecom 3,263 36.3
Asia Pacific Finance 2,579 28.7
Middle-East & Africa 2,514 27.9
Asia Pacific Consumer 2,315 25.7
Europe Industrials 2,175 24.2
North America Finance 2,165 24.1
Europe Energy & Utilities 2,105 23.4
North America Technology 1,975 21.9
Asia Pacific Technology 1,939 21.5
Europe Consumer 1,815 20.2

12

Existing resalable company ticker products (264)
Top 14 Companies (out of 264)

Dena Co. Ltd.

Gree, Inc.

Li & Fung Limited

Chaoda Modern Agriculture (Holdings) Limited

Evergrande Real Estate Group Limited

SINA Corporation

Youku.com Inc.

Tencent Holdings Limited

Cree, Inc.

Exxon Mobil Corporation

Mindray Medical International Limited

Yamada Denki Co. Ltd.

K's Holdings Corporation

Sanrio Co. Ltd.

13

Harvesting demand (SEM) for existing industry newswires
• Keyword Targets & CPC Determination Process
– 65 total industry newswires (5 geographies, 10 industries, 50 combinations)
– 21 of which are robust enough to market (throughput of 20+ news items per day)
– Up to 5 “nicknames” created for each newswire (e.g. Asian from Asia Pacific)
– For each name & nickname, 6 variations used to create keyword set (e.g. Asian Tech News,
Asian Tech Research, Asian Tech Sector News, Asian Tech Sector Research, etc.)
– Google Keyword tool used to derive average searches & approximate CPC for each keyword
(CPC $1.35 - $2.52)

165,734,560 X 0.5% X 3.5% = 29,004 trials
Google searches in the US Of searchers Who visit us,
(estimated) based on a 415 Click-Through start a trial of
Keyword set (potential 800K BrightWire
visitors) service for at
least one
industry

* approximate result from Q1 2011 SEO/SEM Test)

14

Harvesting demand(SEM) for existing companies covered
– 264 total companies currently covered by BrightWire (1.5x average languages/company)
– Up to 2 “nicknames” created for each company (e.g. BYD from BYD Company Limited)
– For each name & nickname, 3 variations used to create keyword set (e.g. BYD, BYD News,
BYD Research)
– Brand names (e.g. Acer) and likely error-prone keywords (e.g. tam research) removed (CPC
$.40 - $1.35)

12,415,213 X 0.5% X 3.5% = 2,173 trials
(estimated) based on a 1968 Click-Through start a trial of
least one
company


15

Harvesting demand(SEM) for expansion industry newswires
– 21 of 65 total industry newswires included in the initial roll-out
– Remaining 44 newswires not included in initial roll-out provide opportunity for expansion
– Expected inclusion of 10 additional newswire per expansion period
– Up to 5 “nicknames” created for each newswire (e.g. Asian from Asia Pacific)
– For each name & nickname, 6 variations used to create keyword set (e.g. Asian Tech News,
Asian Tech Research, Asian Tech Sector News, Asian Tech Sector Research, etc.)
(CPC $1.35 - $2.52)

41,817,856 X 0.5% X 3.5% = 7,318 trials
(estimated) based on a 1,123 Click-Through start a trial of
least one
company


16

Harvesting demand – social media
• LinkedIn CPC segment data
– Targeting major US geographies, London, Australia & Hong Kong and Legal, Financial,
Research and Consulting industries
– Produces a target audience of 658,057
– Average suggested CPC of $3.00

• Facebook CPC segment data
– Targeting those users interested in financial services, investment management, ETFs,
Stock Market, Market Research, Public Relations, M&A, Investment Banking, Venture
Capital, and Hedge Funds
– Produces a target audience of 290,200 users
– Average suggested CPC of $0.94 (vs. ~$1.50 from 2011 test (used in model))

17

Unpaid demand acquisition approaches
• SEO
– Optimize information rich sign-up pages for search engine placement
– Create crawlable industry, company, & topic based directories
– Publish all information assets
– Train GMAs
• Viral/referral models
– Build simple mechanisms for sharing & micro publishing
 Via Facebook
 Via LinkedIn
 Via Twitter
 Via email
– Create simple signup funnels for referees
– Experiment with incentives

18

Model Inputs
Mar '12 Apr '12 May '12 Jun '12 Jul '12 Aug '12 Sep '12 Oct '12 Nov '12 Dec '12 Jan '13 Feb '13

Trialer / Subscription Metrics
SEM Vi s i tor to Tri a l er % 3.7% 3.7% 3.7% 3.8% 3.8% 3.8% 4.9% 4.9% 4.9% 6.0% 6.0% 6.0%
Fa cebook Vi s i tor to Tri a l er % 3.5% 3.5% 3.5% 3.8% 3.8% 3.8% 4.9% 4.9% 4.9% 6.0% 6.0% 6.0%
Li nkedIn Vi s i tor to Tri a l er % 3.5% 3.5% 3.5% 3.8% 3.8% 3.8% 4.9% 4.9% 4.9% 6.0% 6.0% 6.0%
Di s pl a y Ad Vi s i tor to Tri a l er % 3.5% 3.5% 3.5% 3.8% 3.8% 3.8% 4.9% 4.9% 4.9% 6.0% 6.0% 6.0%
Orga ni c/Vi ra l Vi s i tor to Tri a l er % 3.5% 3.5% 3.5% 3.8% 3.8% 3.8% 4.9% 4.9% 4.9% 6.0% 6.0% 6.0%
Referra l Vi s i tor to Tri a l er % 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0%
Pa i d Tri a l er to Subs cri ber % 8.0% 8.0% 8.0% 9.0% 9.0% 9.0% 10.0% 10.0% 10.0% 11.0% 11.0% 11.0%
Orga ni c/Vi ra l Tri a l er to Sub % 12.0% 12.0% 12.0% 13.0% 13.0% 13.0% 14.0% 14.0% 14.0% 15.0% 15.0% 15.0%
Revenue per Subs cri ber per Month $100 $100 $100 $100 $100 $120 $120 $120 $120 $120 $120 $120
Subs cri ber Churn 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%

Spend Metrics
SEM (Adwords ) Spend - Indus tri es $7,368 $7,368 $7,368 $17,895 $17,895 $17,895 $24,000 $24,000 $48,000 $96,000 $214,000 $214,000
SEM (Adwords ) Spend - Compa ni es $12,632 $12,632 $12,632 $27,368 $27,368 $27,368 $48,000 $48,000 $96,000 $192,000 $406,000 $406,000
Fa cebook Spend -- -- -- $8,421 $8,421 $8,421 $24,000 $24,000 $48,000 $96,000 $192,000 $192,000
Li nkedIn Spend -- -- -- $6,316 $6,316 $6,316 $18,000 $18,000 $36,000 $72,000 $100,000 $100,000
Di s pl a y CPM Spend -- -- -- -- -- -- $6,000 $6,000 $12,000 $24,000 $48,000 $48,000

Cost Metrics
SEM (Adwords ) CPC - Indus tri es $1.35 $1.35 $1.35 $1.35 $1.35 $1.35 $1.95 $1.95 $1.95 $1.95 $2.52 $2.52
SEM (Adwords ) CPC - Compa ni es $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.85 $0.85 $0.85 $0.85 $1.35 $1.35
Fa cebook CPC $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50
Li nkedIn CPC $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85
Di s pl a y eCPM $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00

Specific Metrics
Di s pl a y CPM Cl i ck Through 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
Vi s i ts from Orga ni c Sea rch (% pa i d) 1.0% 1.0% 1.0% 3.0% 3.0% 3.0% 5.0% 5.0% 5.0% 7.0% 7.0% 7.0%
Vi s i ts from Di rect Tra ffi c (% pa i d) 0.3% 0.3% 0.3% 0.5% 0.5% 0.5% 0.8% 0.8% 0.8% 1.0% 1.0% 1.0%
% Subs (pa i d) l i kel y to refer (new) 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
Sends per Sha rer 60 60 60 60 60 60 60 60 60 60 60 60

19

Model – GMA Cost
GMA Salary Per Year $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000
GMA Salary Per Month 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000

GMA Cost - Newswires
GMAs per newswire 4 4 4 4 4 4 4 4 4 4 4 4
GMA Cost Per Newswire $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000

Subs Per Newswire 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Total Subscribers 127 249 365 720 1,060 1,387 1,894 2,380 3,410 6,402 10,873 15,164

Prescribed Newswires 1 1 1 1 2 2 2 3 4 7 11 16
Incremental Newswires - over 21* -- -- -- -- -- -- -- -- -- -- -- --
Incremental GMA Cost -- -- -- -- -- -- -- -- -- -- -- --

* Existing Derived or "Pseudo" Newswires

GMA Cost - Companies Online
Companies Per GMA 20 20 20 20 20 20 20 20 20 20 20 20
GMAs Per Company 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05
GMA Cost Per Company $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250

Subs Per Company 20 20 20 20 20 20 20 20 20 20 20 20
Total Subscribers 127 249 365 720 1,060 1,387 1,894 2,380 3,410 6,402 10,873 15,164

Prescribed Companies 7 13 19 36 54 70 95 120 171 321 544 759
Incremental Companies - over 264* -- -- -- -- -- -- -- -- -- 57 280 495
Incremental GMA Cost -- -- -- -- -- -- -- -- -- $14,250 $70,000 $123,750

Total Incremental GMA Cost -- -- -- -- -- -- -- -- -- $14,250 $70,000 $123,750

* Existing Company Coverage

20

Model – Paid Marketing (Display & Search)

Display Advertising
CPM Spend (display, adnetworks) -- -- -- -- -- -- $6,000 $6,000 $12,000 $24,000 $48,000 $48,000
eCPM $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00
Click through rate % 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%
Visits From CPM Spend -- -- -- -- -- -- 857 857 1,714 3,429 6,857 6,857
Visit to Trialer conversion % 3.5% 3.5% 3.5% 3.8% 3.8% 3.8% 4.9% 4.9% 4.9% 6.0% 6.0% 6.0%
Trialers from CPM Spend -- -- -- -- -- -- 42 42 84 205 411 411

SEM (Adwords) Advertising
SEM (Adwords) Spend - Industries $7,368 $7,368 $7,368 $17,895 $17,895 $17,895 $24,000 $24,000 $48,000 $96,000 $214,000 $214,000
SEM (Adwords) CPC - Industries $1.35 $1.35 $1.35 $1.35 $1.35 $1.35 $1.95 $1.95 $1.95 $1.95 $2.52 $2.52
SEM Clicks / Visits - Industries 5,458 5,458 5,458 13,255 13,255 13,255 12,308 12,308 24,615 49,231 84,921 84,921

Trialers from SEM - Industries 201 201 201 503 503 503 603 603 1,206 2,953 5,095 5,095

SEM (Adwords) Spend - Companies $12,632 $12,632 $12,632 $27,368 $27,368 $27,368 $48,000 $48,000 $96,000 $192,000 $406,000 $406,000
SEM (Adwords) CPC - Companies $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.85 $0.85 $0.85 $0.85 $1.35 $1.35
SEM Clicks / Visits - Companies 31,579 31,579 31,579 68,421 68,421 68,421 56,471 56,471 112,941 225,882 300,741 300,741
Trialers from SEM - Companies 1,165 1,165 1,165 2,600 2,600 2,600 2,767 2,767 5,534 13,552 18,044 18,044

Trialers from SEM - Total 1,366 1,366 1,366 3,103 3,103 3,103 3,370 3,370 6,740 16,505 23,139 23,139

21

Model – Paid Marketing (Social Networking)

Facebook Advertising
Facebook Ad Spend -- -- -- $8,421 $8,421 $8,421 $24,000 $24,000 $48,000 $96,000 $192,000 $192,000
Facebook CPC $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50
Clicks / Visits From Facebook -- -- -- 5,614 5,614 5,614 16,000 16,000 32,000 64,000 128,000 128,000

Trialers from Facebook -- -- -- 213 213 213 784 784 1,568 3,840 7,680 7,680

LinkedIn Advertising
LinkedIn Ad Spend -- -- -- $6,316 $6,316 $6,316 $18,000 $18,000 $36,000 $72,000 $100,000 $100,000
LinkedIn CPC $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85
Clicks / Visits From LinkedIn -- -- -- 2,216 2,216 2,216 6,316 6,316 12,632 25,263 35,088 35,088

Trialers from LinkedIn -- -- -- 84 84 84 309 309 618 1,515 2,105 2,105

22

Model – Paid Marketing Summary

New Trialers from Paid Marketing 1,366 1,366 1,366 3,400 3,400 3,400 4,505 4,505 9,010 22,065 33,335 33,335

Total Monthly Online Mktg Cost $20,000 $20,000 $20,000 $60,000 $60,000 $60,000 $120,000 $120,000 $240,000 $480,000 $960,000 $960,000
Effective Online Cost per Trial (CPL) $14.64 $14.64 $14.64 $17.65 $17.65 $17.65 $26.64 $26.64 $26.64 $21.75 $28.80 $28.80

Accumulated Paid Mktg Trialers 1,366 2,732 4,098 7,498 10,898 14,298 18,803 23,308 32,318 54,383 87,718 121,053

Paid Trialer to Subscriber % 8.0% 8.0% 8.0% 9.0% 9.0% 9.0% 10.0% 10.0% 10.0% 11.0% 11.0% 11.0%
New Subscribers from Paid Mktg 109 109 109 306 306 306 451 451 901 2,427 3,667 3,667
Effective Online CPA $183.02 $183.02 $183.02 $196.08 $196.08 $196.08 $266.37 $266.37 $266.37 $197.76 $261.81 $261.81

Subs from Paid, Beg. of Period -- 109 214 315 608 890 1,160 1,564 1,952 2,775 5,091 8,555
Monthly Churn 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%

Subs from Paid, End of Period 109 214 315 608 890 1,160 1,564 1,952 2,775 5,091 8,555 11,879
Revenue per Subscriber $100 $100 $100 $100 $100 $120 $120 $120 $120 $120 $120 $120

Payback Period (Months) 1.83 1.83 1.83 1.96 1.96 1.63 2.22 2.22 2.22 1.65 2.18 2.18

TOTAL REVENUE - SUBS (Paid) $5,464 $16,173 $26,455 $46,160 $74,914 $123,021 $163,490 $211,010 $283,660 $472,003 $818,762 $1,226,034

23

Model – Organic / Viral Marketing

Organic Search Visits
Organic Search Visitors 370 370 370 2,685 2,685 2,685 4,598 4,598 9,195 25,746 38,892 38,892
Trialers from Organic Search 12 12 12 102 102 102 225 225 450 1,544 2,333 2,333

Direct Traffic Visits
Direct Traffic Visitors 93 93 93 448 448 448 690 690 1,379 3,678 5,556 5,556
Trialers from Direct Traffic 3 3 3 17 17 17 33 33 67 220 333 333

Referral Visits
Percent of new subs referring 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
Referrals per subscriber 60 60 60 60 60 60 60 60 60 60 60 60
Referral visitors 656 656 656 1,836 1,836 1,836 2,703 2,703 5,406 14,563 22,001 22,001
Trialers from Referrals 131 131 131 367 367 367 540 540 1,081 2,912 4,400 4,400

Organic / Viral SUMMARY
New Trialers from Organic / Viral 146 146 146 486 486 486 798 798 1,598 4,676 7,066 7,066
Accumulated Organic Trialers 146 292 438 924 1,410 1,896 2,694 3,492 5,090 9,766 16,832 23,898
Organic/Viral Trialer to Sub % 12.0% 12.0% 12.0% 13.0% 13.0% 13.0% 14.0% 14.0% 14.0% 15.0% 15.0% 15.0%
New Subscribers from Organic 18 18 18 63 63 63 112 112 224 701 1,060 1,060
Subs from Org., Beginning of Period -- 18 34 50 112 170 227 329 428 635 1,311 2,318
Monthly Churn 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
Subs from Org., End of Period 18 34 50 112 170 227 329 428 635 1,311 2,318 3,285
Revenue per Subscriber $100 $100 $100 $100 $100 $120 $120 $120 $120 $120 $120 $120
TOTAL REVENUE - SUBS (Organic) $876 $2,593 $4,241 $8,107 $14,100 $23,825 $33,366 $45,438 $63,747 $116,704 $217,714 $336,193

24

Model – Summary

Total Monthly Revenue $6,340 $18,766 $30,696 $54,267 $89,014 $146,846 $196,856 $256,448 $347,407 $588,707 $1,036,476 $1,562,227
Total Monthly Marketing Cost 20,000 20,000 20,000 60,000 60,000 60,000 120,000 120,000 240,000 480,000 960,000 960,000
Total Monthly Online Margin ($13,660) ($1,234) $10,696 ($5,733) $29,014 $86,846 $76,856 $136,448 $107,407 $108,707 $76,476 $602,227
Online Margin % N/A N/A 34.8% N/A 32.6% 59.1% 39.0% 53.2% 30.9% 18.5% 7.4% 38.5%

Incremental GMA Cost -- -- -- -- -- -- -- -- -- $14,250 $70,000 $123,750
Gross Margin, Online ($13,660) ($1,234) $10,696 ($5,733) $29,014 $86,846 $76,856 $136,448 $107,407 $94,457 $6,476 $478,477
Online Margin % N/A N/A 34.8% N/A 32.6% 59.1% 39.0% 53.2% 30.9% 16.0% 0.6% 30.6%

Accumulated Revenue $6,340 $25,106 $55,802 $110,069 $199,083 $345,929 $542,785 $799,234 $1,146,641 $1,735,347 $2,771,824 $4,334,051
Accumulated Marketing Cost 20,000 40,000 60,000 120,000 180,000 240,000 360,000 480,000 720,000 1,200,000 2,160,000 3,120,000
Accumulated Margin ($13,660) ($14,894) ($4,198) ($9,931) $19,083 $105,929 $182,785 $319,234 $426,641 $535,347 $611,824 $1,214,051
Accumulated Margin % N/A N/A N/A N/A 9.6% 30.6% 33.7% 39.9% 37.2% 30.8% 22.1% 28.0%

Accumulated GMA Cost -- -- -- -- -- -- -- -- -- $14,250 $84,250 $208,000
Accumulated Gross Margin, Online ($13,660) ($14,894) ($4,198) ($9,931) $19,083 $105,929 $182,785 $319,234 $426,641 $521,097 $527,574 $1,006,051
Accumulated Gross Margin % N/A N/A N/A N/A 9.6% 30.6% 33.7% 39.9% 37.2% 30.0% 19.0% 23.2%

Overall Monthly Cost / Trial (CPL) $13 $13 $13 $15 $15 $15 $23 $23 $23 $18 $24 $24
Overall Monthly Cost / Acq. (CPA) $158 $158 $158 $163 $163 $163 $213 $213 $213 $153 $203 $203

Total Monthly Trialers from Online 1,512 1,512 1,512 3,886 3,886 3,886 5,303 5,303 10,608 26,741 40,401 40,401
Total Monthly Subs from Online 127 127 127 369 369 369 562 562 1,125 3,129 4,727 4,727

Accumulated Trialers from Online 1,512 3,024 4,536 8,422 12,308 16,194 21,497 26,800 37,408 64,149 104,550 144,951
Accumulated Subs from Online 127 254 380 750 1,119 1,488 2,050 2,612 3,737 6,866 11,592 16,319

TOTAL REVENUE FROM ONLINE $6,340 $18,766 $30,696 $54,267 $89,014 $146,846 $196,856 $256,448 $347,407 $588,707 $1,036,476 $1,562,227
TOTAL SUBSCRIBERS FROM ONLINE 127 249 365 720 1,060 1,387 1,894 2,380 3,410 6,402 10,873 15,164

25

Growth Scenarios – Accumulated Rev (Varying RPU)

$8,000,000

$7,000,000

$6,000,000

$5,000,000 Breakeven
$25 px point

$50 px point
Breakeven
$3,000,000
$100 px point

Breakeven
$2,000,000 $300 px point

$1,000,000

--
Mar 2012 Apr 2012 May 2012 Jun 2012 Jul 2012 Aug 2012 Sep 2012 Oct 2012 Nov 2012 Dec 2012 Jan 2013 Feb 2013

$25 Initial Price Point $50 Initial Price Point $100 Initial Price Point $300 Initial Price Point

26

Growth Scenarios – Accumulated Subs (Varying RPU)

45,000

40,000

35,000

30,000
Breakeven
$25 px point
25,000
Breakeven
$50 px point
20,000
Breakeven
$100 px point
15,000
Breakeven
$300 px point
10,000

5,000

--

$25 Initial Price Point $50 Initial Price Point $100 Initial Price Point $300 Initial Price Point

27

Growth Scenarios – Monthly Revenue (Varying Spend)

$3,500,000

$3,000,000

$2,500,000

$2,000,000

$1,500,000

All Scenarios

$500,000

--
$2,500/Month Initial Spend $5,000/Month Initial Spend $10,000/Month Initial Spend
$20,000/Month Initial Spend $40,000/Month Initial Spend

28

Inbound Traffic Logged out Experience Logged in Experience
& Intent

Sales Referral
LO Home Page Products [what we How it works
[get product info] do]

LO Home Page Company Ticker

Ver 1 - brochure Who we are
SEM/SEO Industry Newswire

get ticker / topic LO Home Page Team
info] Custom Solutions
Ver 2 – minimal &
Board
Versions to signup
test
LO Home Page Industries [who we
Paid Display serve]
Ver 3 –combo &
Careers
[get product info]
newsfeed Financial Services

Click on
LO News Detail & news item
Public Relations Contact Us
Sign-up
Viral Referral Corporate Dev
Accessible in footer
[sign up / get off all pages
LO Company &
product info] Legal
Sign-up
Search First Time Trialer
LO Industry & Wizard
Email Post sign-up trailer
Sign-up onboarding
[evaluate/use
products]

Signup or LO Sign-up or
login Login LI Home Page
Login [news feed]
Direct Login

[use products] Search Results

News Detail Page

34

Search
Results
Page

37

2012 online roadmap final v5

Recommended

Recommended

More Related Content

What's hot

What's hot (18)

Similar to 2012 online roadmap final v5

Similar to 2012 online roadmap final v5 (20)

2012 online roadmap final v5