14. Market Size
● TAM = $2.8B
● SAM = $644M
● Target = $129M
● Stats:
○ TAM: $229B donated by individuals to
NPs ($101B to churches)
○ $7.3B donated to non-denom churches
○ 1.8M NPs & Churches
● Assumptions:
○ Capture 20% donations, 80% still via checks/cash,
34% of orgs. fit target + willing to use mobile, we
earn 1% fee on donations
○ $25/month SaaS fee
Customer development interviews; most customers were interviewees
What we did
We got out of the building and spoke with both sides of the market (donors and churches along with different religions, geographies, organization sizes, people inside & outside of our networks, referrals). We also spoke with many other industry participants like Channel partners, Suppliers, Competitors, Investors & others.
To cap it off, we spoke to hundreds of customers at a conference.
What we did
Landing page experiments for revenue model
AdWords campaigns to calculate CAC
Facebook campaigns to calculate CAC
Church conference to test CAC
…And ultimately we learned about our sales model
What we learned
When we formed our team in the fall, one clear strength was our team member involvement in churches and nonprofits. Despite this, what we learned and how much we learned surprised each one of us….
For example, wWe thought mega churches with thousands of members and celebrity pastors were are target customers…turns out, we were mistaken
What we learned
We learned we actually have many potential customers, on each side of the market…
Tithing Tina – gives 10% already but would give extra to special causes through GiveModo
Finance Fred – Is worried we will make his accounting more complicated
Busy Brett – Hates the way the giving process works and is ready to go to mobile
Checkless Chuck – wants to give but doesn’t have a way to
Lead Pastor Paul – Has a vision to cultivate generous giving in his church
Camp Director David – wants to be able to collect donations at camp, when nobody has their computer or checkbook
AND…Church Planter Peter – is running a startup church with tech-savvy members who want to use mobile
What we learned
Another surprising learning to us…just how bad our customers’ pain is ….they are hacking their own MVPs and that means asking donors to write down their credit card numbers on paper…doesn’t that defeat the purpose of credit cards?
What we learned
Since GiveModo is a mobile app, naturally we thought we could generate most demand online…turns out, we were mistaken again
What we learned
CACs are high through search, better through social and perhaps best in person
We will be spending our time going forward at conferences, knocking on doors and cold-calling as we develop our new market
Maybe for 1: “Self-fund until we hit profitability”
Maybe for 1: “Self-fund until we hit profitability”
Maybe for 1: “Self-fund until we hit profitability”
Maybe for 1: “Self-fund until we hit profitability”
