High-Speed File Sharing Service Proposal Summary

1Jmartin 7/20/01 PassIt.ppt
Date: July 2001 Reference: PassIt.ppt
Presentation:
Jay Martin
PassIt.com
Parking for High Speed
Files Acquisition

II Problem & SolutionProblem & Solution
IIII Marketing & CompetitionMarketing & Competition
IIIIII FinancialsFinancials
IVIV Future Enhancements & IssuesFuture Enhancements & Issues
VV Our ProposalOur Proposal
Agenda

Given the need to send large files via email, people wind up wasting
massive resources with both necessary and unnecessary files space.
The Problem Current System
• Server space taken up by large files being send to lists of people
• People who are remote have huge files in their queues, and cannot
determine if they want to receive them until after they have downloaded
• Specific files cannot be stopped from receipt on the road, on-line time for
service at remote locations prolonged due to file receipt
• Email inboxes, hard disk space, server space for past received all
wasted unnecessarily
• Areas of Waste Include:
– Corporate or ISP Email Systems - Space
– Personal Email Boxes & Hard Drives - Space
– Low Speed Connection - User time & access time/dollars
Though not huge inconveniences and with assistance such things as
‘size limits for emails’, is there another answer? What else can we do?

Create a Web-based SSP to temporarily store file attachments so
they can be retrieved when recipients have high speed access.
The Solution The Solution - New Service
User Sends
Email to Site
USER
SITE
RECIPIENT
User then
forwards
link with
message to
people he wants
to get it
Recipients
receive message
with link
Recipients hit
link and retrieve
file (counter
buried into file as
a bcc on the
email forward)
Recipient
receives file
Site sends back
link with title the
same, stores file,
waits for retrieval
Site downloads
file with a
window which
shows ads and
will close upon
completion
System deletes
file after counter
filled or timing
expires. Advises
user that files is
being purged
$
$
Sender receives
email notice of
deletion and
what addresses
picked it up
$
$
End
$ Symbols represent ad placement opportunities, revenue generation.

To avoid any confusion, we will restate the course of events of a
‘transaction’ here in text form.
The Solution The Solution - New Service
• 1) User attaches file to email and sends to ‘PassIt@PassIt.com’
• 2) PassIt.com stores file and creates email with link back to file
• 3) PassIt.com sends User file with link and HTML email ads
• 4) User then Forwards email out to addresses
• 5) Addressees receive email with HTML ads and link back to file
• 5) Addressees click on link, delete email or leave in ‘inbox’ until later
• 6) Addressees click on link in email, file down loads, ads are displayed
• 7) Addressees delete email with link
• 8) After all addressees get file or time period ends, PassIt emails User
$
$
$
$

Our proposed system presents benefits for everyone involved and
incentives for all to both utilize and promote the service to others.
The Solution Benefits for Customer(s)
• User - fewer complaints and higher chance people read his stuff
• User Email Server - less chance kicked back emails clog system or
return replies with file inadvertently attached
• Recipient Server - much less space used, not clogged with attachments
• Recipient
– Less time to download, avoid files clogging email
– Email boxes do not fill up due to file attachments
– Can delete if they so choose
– Less downtime for PC in picking up email from low speed
– Less charges for phone & service provider to pick up emails
– Can screen files
– Can consolidate email pick up
– Personal email box system does not become clogged (backup, etc)

Given its simplicity and ease of duplication, we are recommending
that it be an ‘ads-based’ model and free access to all.
The Solution Revenue Generation - How It Makes Money
• A ‘transaction’ provides four places to display ads
– 1) User confirmation email, html format
– 2) User email to Recipients, html format with link to files
– 3) Recipient Access to site, pop-up windows, piggy back ads
– 4) User notification of files deletion, can recapture file, resend, close
• Other methods to obtain revenue from this model could be:
– Have people register, pay for membership
– Charge companies/domains a fee, usage based
– Charge by use (not recommended)
– Allow as an add-on for other services (ex: free to all AOL
subscribers)
Our research showed that many other people have tried to tackle this
issue, but both their model (monthly fees) and execution were faulty.

In response to a ‘Sender’, we will create an email which will have the
following characteristics and be sent back to him.
The Solution Email Structure
• Have a two letter prefix (TBD) before title he typed in.
• File will have been striped off, placed in storage and link created.
• Email will be an html full color with:
– Original text preserved at top in original form
– A ‘very prominent ‘ button which when clicked opens browser window
to the file to be downloaded
– Multiple advertisements with links to their sites
– Additional buttons for assistance or for help with our system
• The second email, “Closing email” will have additional info
– Information on downloads (is who possible?), how many & when
– Button requesting an extension on our network
– Time of placement and total time on system
– Thanks for using our services & advanced tips

Agenda

This services does not currently exist, but our objective is to partner
with an SSP with excess capacity and get first mover advantage.
Marketing & Competition The State of the SSP Industry
• Industry has a huge capacity excess
• Performance at most/all companies poor, recent lay-offs at some
• Consolidation will not take capacity off-line, just reduce overhead costs
• Adoption of their core service slower than expectations
• Need new ways to utilize their capital investments
• Economic downturn hurting them a little, but not in all cases
• Poor revenue forced some to turn to their VCs for more funding rounds
Our service will only use assets when they are needed, and if they are
being used they will be generating money. Opportunity cost is zero!!

The other SSPs are well-financed and have good VC ties, but they are
not making money and will require VC approval to move on this.
Marketing & Competition Competitors
• Need to work clandestinely
• Need to become ‘the one’, dissuade competitive investments
• Need to tie major companies with free ads, disallow advertising on others
• Need massive front end PR and Marketing effort, must be FAST
• Email companies, administrators need to be target, word must get out
• Need to incentivize people to use it, prizes etc. - ‘good dotcom idea!!’
• Need to become ‘in’ with Geek/techie crowd
• TALK ABOUT INDUSTRY AND HOW PEOPLE ARE DOING

No competitors currently exist for this need, but we expect massive
entry after our launch (no barriers). First mover needs to dominate.
Industry Competition and Competitive Response
• Only barriers are site and interface development, storage capacity and
advertisement selling.
• Consumers will not pay anything.
• Massive launch in a Skunkworkesque environment required.
• Secrecy is of the essence
• Need to pitch service to Corporate CIOs, Email Administrators & ISPs
• Everyone benefits - offer free ads to ISPs to promote, possible prizes to
people who forward the message on.
• With PDAs & Mobile access growing, this becomes even more prevalent
in dealing with emails while away from a high-speed line.

For the existing know businesses who provide the service we are
proposing, we analyzed them with regard to specific attributes.
Marketing Competition
Name/Site Service(s) Cost/Revenue Founded/Owner
XXXX XXXX XXXX XXXX
XXXX XXXX XXXX XXXX
XXXX XXXX XXXX XXXX
XXXX XXXX XXXX XXXX

XXXX XXXX XXXX XXXX
XXXX XXXX XXXX XXXX
XXXX XXXX XXXX XXXX
XXXX XXXX XXXX XXXX

The Marketing Strategy will require a number of components, and is
somewhat simple given the ‘ads-based’ model we are proposing.
Marketing Marketing Strategy
• Launch
– This is the most critical. Most be a ‘home run’ for this to work well.
• Market/encourage people to use service (keep it anonymous & free)
– Primary challenge is awareness
– Secondary challenge will be continued use
• Promote over competitive services
– Existing services are payment-based, different model, lower yield
– Competitors need to be watched - expect good ideas, need to copy
– Work with or lock-in ISPs to promote our service to their customers
The revenue component here will be the selling of ads, promoting
pass throughs and providing additional services. Need to show ad
buying population that we are better and cheaper than most.

Given the different existing hardware configurations of our targets to
sell this idea, we will not discuss in detail the technical requirements.
Marketing Operations & Facilities
• Website - simple (describe the service, how to use it, 1-3 pages)
• Email interfaces & email creator for ads/html emails
• Data storage and security
• Sales force to sell advertisements and manage alliances
• Technical support to field emailed problems (no phone support)

Before launch we will need to build alliances with a variety of people
if possible and maximize adoption and fend off competition.
Marketing Alliances
• Other SSPs - try to get them to sign non-competes for a deal to buy
some of their excess storage. This is a long-shot, but worthwhile.
• ISPs & Email Providers - need their advertising and support to their base.
Pitch future services, get non-competes and try to lock-up in single
support agreements (I.e. they will not place ads on future competitors) to
offer/warn that ads can be used to lure their customers
• Major e-Businesses - look for support in exchange for free ads and
enhanced services, pitch usage from their in their ads and try to get
support agreements so they can’t advertise on future sites
• Email Software Makers/Installers - look to them for links and support
The super critical issue is to be able to tap into the corporate and
organization email administrator community for support and
enforcement. This has huge benefits for them, and the future could
be blocking of large size emails with a response to see ‘PassIt.com’.

Alliances
Marketing Alliances
• For our service, we imagined that it will stay free for basic
• Alliances need to be made with major eBusinesses and ISPs

The first challenge is raise awareness and incentivize people to use
the system and encourage others instead of traditional file attach.
Marketing Challenge One - Get People To Use It (Awareness)
• Let them know it is out there and free
• Make it easy to use and show how it is done
• Provide incentives, other than ‘hey check this out’ to get word out
Once someone uses our system or another, the next challenge is to
get them to choose us over something else.

For both starter customers and capturing the repeats, we need to
focus on a number of bases of competition.
Marketing Second Challenge - Use US over the competition
• Ease of understand directions/how to use it
• Ease of use
• FREE
• Lack of errors
• Lack of confusion
• Added value

Customers will choose us over the competition because of one of the
following reasons.
Marketing Second Challenge - Use US over the competition
• Knowledge that it exists, first time use
• Quality of directions to use
• Past use, positive experience
• Ease of use as compared to options
• FREE
• Quality of service
• Lack of intrusiveness, one shot, not gathering information, no accounts
• Added value
• Content
• WHAT ARE THE OTHER Bases of Competition?

Agenda

Per Transaction, we are estimating a range of revenue from $X to $Y
and need to agree that this is the best means for obtaining revenue.
Financials Pricing & Advertising Potential
1
2
3
4
Email to
Sender with
Link
Email from
Sender with
Link to
Address List
Download of
File(s) from
PassIt by
Recipient(s)
Close Email
confirming
receipt and
deletion from
system
Link
PassIt
Link
PassIt
Closed
Note: Some of the enhanced services, like pick-up confirmation also present revenue opportunities.
This first email is the response email to
when a user uploads a file for PassIt to
store. An HTML email (full color) is sent to
the Sender from PassIt with various ads on
it from our partners.
This first email which was sent to the user
is now forwarded to his recipient list. This
takes the first ads and multiplies their views
buy the number of people opening the
email informing them of the PassIt file.
When the Recipient clicks on the link, a
new browser window will open and display
the file names, sizes, address of sender
and then a meter showing time left. This is
also an excellent venue for multiple ads.
This first email is the response email to
when a user uploads a file for PassIt to
store. An HTML email (full color) is sent to
the Sender from PassIt with various ads on
it from our partners.
Download
Info
$?
$?
$?
$?

Fixed Costs (broken down as best as possibly by activity)
Financials Fixed Costs & One-Time Investments
IT Labor - Executive/Senior Management Assistance
IT Labor - Server Configuration
IT Labor - Email Receipt Software & Interface
IT Labor - File Storage Organizer
IT Labor - Email & Link Creator
IT Labor - Virus Scan
IT Labor - Account Monitoring & Tracking Development
IT Labor - Timing and Size Discipline
IT Labor Sub-Total 50 250 400
Sales - Selling Initial Ads, Creating Relationships 5 10 20
Marketing - Contact High Volume Sites, ISPs, etc. 10 25 40
Marketing - Advertising Research & Placement 30 50 100
Admin - Executive/Senior Management Assistance 0 10 20
Miscellaneous - Hardware, etc. 50 155 220
Total 145 500 800
Best Base Worst
Note: All numbers in thousands

Operating Costs (broken down as best as possibly by activity)
Financials Operating Costs (Yearly Estimates)
IT Labor - Senior Admin
IT Labor - Server Maintenance
IT Labor - Technical Help & Support Services
IT Labor - Software Updates
IT Labor - Conformance Changes
IT Labor Sub-Total 180 300 700
Sales - Sales Staff Expenses 180 240 300
Marketing - Staff Expenses 80 150 200
Miscellaneous - Hardware, etc. 40 80 100
Total 480 770 1,300
Best Base Worst
Note: All numbers in thousands and on a yearly basis

First we will understand the value of a transaction and how revenue
can be gained on average as compared to the typical cost.
Financials Revenue Generation
• Assumptions
– Revenue range of $30-65 per managed Gigabyte per month
– Month is comprised of 30 days
– Four places to place ads/generate revenue per transaction
– Average files size is 2 Megabytes
– Time permitted for free storage is 7 days (1 week)
– XXXX
– XXXXX
• New Data Values
– Revenue (opportunity cost of storage) is $30-65/(1000/(30/7) to equal
- Weekly ‘cost’ per Megabyte is $.007-.0152
- ‘Cost’ of storage per average transaction is $.014-.03

We need to better understand the revenue per transaction as a
function of the advertising income and long-term projections.
Financials Revenue Generation
• Clicks, CPM and HTML emails, what are they worth here?
– Need to get current and future revenue values for these
• How to do HTML emails?
• How many ads can we cram in each? What will companies accept?
• During #3 opportunity, download, how can we rollover multiple ads and
possibly get paid for ‘time’ in the consumers face?

Work Up for 1 Gig of space
XXXXXXXXXXX XXXX
1 Gig per month
at $30/month
1 Gig = $1/day
100 Meg = $.10/day
10 Meg = $.01/day
1 Meg = $.001/day
100 Meg = $.70/wk
10 Meg = $.07/wk
1 Meg = $.007/wk
Average transaction sizes have different Break Even revenues.
100 Meg = $.70/wk
10 Meg = $.07/wk
1 Meg = $.001/wk
5 Meg = $.035/wk
2 Meg = $.014/wk
750 K = $.005/wk

Chart showing Operating Margin using an Opportunity Cost
XXXXXXXXXXX XXXX
$1.07
$.65
$.56
$.05
$.01
5 10 15 25 35
Note: Use $60/month per managed Gigabyte, which is 0.2 cents per managed Meg-Day.
.97 .87 .77 .57 .37
Average Megabyte Days per Transaction
Revenue Per
Transaction
XX XX XX XX XX
XX XX XX XX XX
XX XX XX XX XX
XX XX XX XX XX

Chart showing Operating Margin using an Opportunity Cost
XXXXXXXXXXX Revenue per Managed GigaByte
$1.07
$.65
$.56
$.05
$.01
5 10 15 25 35
Note: Use $60/month per managed Gigabyte, which is 0.2 cents per managed Meg-Day.
6042 .87 .77 .57 .37
Average Megabyte Days per Transaction
Revenue Per
Transaction
XX XX XX XX XX
XX XX XX XX XX
XX XX XX XX XX
XX XX XX XX XX

Agenda

During the development and planning by whoever picks this up, a
number of things should be reviewed for consideration.
Future Enhancements Additional Services
• Secured by password
• Semi-secured - only people from same domain can get it
• Can have links compiled from different messages or massive download
• Block specific emails, domains or unknowns
• Have jokes, news, comics or stocks (content for emails or wait)
• Can notify you if and when someone picked up file
• Limit to 50 (choose number) people, avoid people spamming
• Should we have ‘direct net’ upload via a browser for people who want to
circumvent email system. Need to enter in their emails.

These are some issues we wanted to bring up to ensure
identification.
Other Issues Things to think about
• What should name be (we will use PassIt at this stage)?
• Security of site
• Charges for using it for larger files, what will be cut-off
• Potential to secure per domain (ex: McKinsey@PassIt.com)
• What time periods to use
• What to provide in Close email (list of who accessed it)?
• How to discipline people who abuse it?
• Need to get people to register?
• Enhanced services, what and when
• Secrecy must be maintained!!!!! Think about massive launch
• What else could we do, additional value to users (news during dwnload)
• Why not get files by email, some give preview abilities for messages?
• Can we eliminate the send and wait, act as a transfer, kill forwarding?

We suggest a name just for discussion, but in the end a real ‘naming’
exercise and website acquisition will be acquired.
Marketing Naming the Site
• Two syllables
• No acronyms, must be able to pronounce
• Convey things like the list below:
– File, Park, Retrieve, Link, Speed, Easy, HiSpeed, Attachment
– Prefer .net address over .com, less baggage in today’s lingo
• Forget something cute (example: FileMonkey)

Name ideas
XXXXXXXXXXX XXXX
• Uplink
• Freelay
• ePark
• eLimbo
• eTran
• Grabit
• iPass
• ePass
• PassIt
• MegStop
• RestStop
• Layover
• PitStop
• XXXX • Lodge
• Hotel
• Depot
• Archives
• Cargo
• Freight
• Load
• Trailer
• Bulk
• Hand Off
• Sherpa
• Cart
• Haul
• Journey
• Go
• Proceed
• Seize
• Snatch
• Take
• Grasp
• Pull
• Get
• Obtain
• Warehouse
• Repository
• Move
• Transfer
• Pass
• Grab
• Snag
• Park
• Limbo
• Attachment
• File
• Storage
• PickUp
• Carry
• Transit
• Transport

Agenda

Slice Up IT Needs
XXXXXXXXXXX XXXX
• Expertise needed
– Email expert
- To make interface and stripper of files
- Creation of emails to Sender
- Structure links & ads
- Keep track of customers and ad revenue
- How to block bad people
– Storage expert to figure out
- How to store stuff and create links
- How to delete stuff at time of closure
- How to evaluate size and give file a time
- How to include anti-virus and spam software
– Webexpert
- How to create site
– Security expert - how to protect it

High-Speed File Sharing Service Proposal Summary

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