Team membersHaohan (Alfred) YuanMaster of Financial Engineering, ’13HackerKuan (Kevin) YangMaster of Financial Engineering, ’13Customer DevelopmentZhibai (Blake) HanM.Eng. IEOR, ’13Chinese Social Media ExpertHarvey DuanEWMBA, ’14Business Development
What we foundNumber of Twitter Users 140,000,000% of Twitter Users with over100,000 followers1%Number of Twitter Po 1,400,000% of converting users 2%Number of paying customers 28,000Average payment per customerper month$100Target Market $33,600,000
What We Learned―Follow the money.‖Brett Wilson, CEO of TubeMogul
Canvas Version 2: ServeBusinessesFocus:BusinessesFindTalentedMarketers;AddAuthenticFollowers;Partner:ChineseSocialMediaMarketingAgenciesMatchingAmericanBusinesseswith ChineseAgencies
What we found ―We were a bit surprised at the monthlyfee —we really are not in a budgetaryposition to partner with you.‖—Lia L. KennettGeneral Manager, D: All Things Digital
Canvas Version 3: Business ModelValidationEnterprise weibo management feevsEnterprise subscription fee platformEducatingcustomersegmentsEducatedvsNon-educated
Customer Acquisition Cost Educated customer 1 hour lead gen 4 hours of education +business development 25% acceptance rate $50 per hour CAC = $1,000 Non-educated customer 1 hour lead gen 1 hours of education 10% acceptance rate $50 per hour CAC = $1,000020040060080010001200Educated Non-educatedCustomer Acquisition Cost
LTV – Subscription FeePlatform LTV = expected life x avg revenue x grossmargin Tweet re-posting only for non-educatedcustomers Expected life = 6-9 months Avg revenue (tweet re-posting) = $100 permonth Gross margin = 90%CAC > LTV$1,000 > $810
LTV – Weibo Management LTV = expected life x average revenue x gross margin Full-service social media agency Expected life = 2 years Average revenue per customer over expected life = $17,840 Months 1-2 = $2,000 per month (basic) Months 3-4 =$4,000 per month (advanced) x 50% retention =$2,000 Months 5-6 = $6,000 per month (pro) x 25% retention = $1,500 Months 6-12 = $6,000 per month x 10% retention = $540 Months 12-24 = $6,000 per month x 5% retention = $300 Gross margin = 50% LTV = $8,920LTV > CAC$8,920 > $1,000More Lucrative!
Conclusion1. Not a venture backed business.2. Small and medium size businesses are notyet ready to adopt Chinese social mediamarketing strategies.3. Our sales cycle includes educating thecustomers about the importance of Chinesesocial media marketing.
Is this a viable lifestylebusiness?YesTwibo, LLCOnethousand1,000.00Weibo Consulting StudentUniverse, Inc.