Pay Yourself First 7 27 07 V2 David Carrithers


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Pay Yourself First 7 27 07 V2 David Carrithers

  1. 1. Pay Your Family First Network ROUGH THOUGHTS July 27, 2007 David Carrithers
  2. 2. High Level Observations <ul><li>Ton of information out there on Pay-Yourself-First (web, seminars, booklets) </li></ul><ul><li>Most is very financial industry focused loaded with lingo, equations, industry terminology </li></ul><ul><li>Targeting kids, novice savers, underserved </li></ul><ul><li>Many banking intuitions have information or tie in with “charity & community good will” and PYF </li></ul><ul><li>Universities, businesses, financial planners all have an angle or advance </li></ul><ul><li>Today PYF seems fractured, self-serving, abstract and “OK now what” – lacking connection to action and ability </li></ul>
  3. 3. High Level Observations <ul><li>PYF movement needs simplification and individualization of message </li></ul><ul><li>Less about financial terms and equations and more about the end goal and goal attainment </li></ul><ul><li>The average person needs to see, feel and desire the end result/ goal – once they embrace this they will move mountains </li></ul><ul><li>Need to fit in with everyday life, the way we work, earn and live. </li></ul>
  4. 4. High Level Market Indicators <ul><li>Growth Of Acceptance Of Stored-Value Cards </li></ul><ul><li>The stored-value marketplace, which includes both prepaid debit cards and merchandise gift cards, is expected to grow from a $216 billion market in 2005 to $650 billion in 2010, according to a report released by the Pelorus Group, a U.S. market research group. </li></ul><ul><li>National Retail Federation Gift Card Survey, 2006 </li></ul><ul><ul><li>$24.8 billion: total gift card sales this holiday season </li></ul></ul><ul><ul><li>$116.51: average amount consumers will spend on gift cards this year </li></ul></ul><ul><ul><li>$88.03: average amount consumers spent on gift cards last year (2005) </li></ul></ul><ul><ul><li>79.7 percent: consumers who said they plan to purchase at least one gift card this holiday season </li></ul></ul><ul><li>Prepaid card sales at convenience stores jumped 68.5% in 2005, a phenomenal growth spurt by anyone's reckoning--and it looks like the next wave is prepaid debit cards. The entire prepaid market has a defined value of more than $2.5 trillion dollars, and the business-to-cardholder portion consumes more than $1.5 trillion of that, stated C Store 2006 Sales Trend Handbook </li></ul>
  5. 5. High Level Market Indicators <ul><li>To Keep In The Back Of Our Minds </li></ul><ul><li>The U.S. General Accounting Office has estimated that there are almost 60 million unbanked individuals in the U.S., including approximately 24.2 million U.S. house-holds that do not have a checking account. </li></ul><ul><li>Franchising, which employs more than eight million people domestically while generating retail sales in excess of $1 trillion annually, it is important to recognize that banking the unbanked into direct deposit can have a significant impact on the bottom line. This is true for franchise businesses and their unbanked employees. </li></ul><ul><li>More than half of all workers in the U.S. use direct deposit in one form or another. Ninety-seven percent of employees who sign up for direct deposit are very satisfied with it and more than 70 percent of employees who have access, use it. </li></ul><ul><li>Unbanked employees who are paid by paper check often resort to &quot;check-cashers&quot; or check-cashing services. These services charge as much as 8 percent of the face value of the check as a cashing fee. This is an expensive transaction, especially for those who can least afford it. </li></ul><ul><li>Teens spend about $153 billion on goods and services each year, mainly with cash, according to Visa. </li></ul>
  6. 6. Pay Your Family First Membership Program <ul><li>Free to users: educates & provides path to action </li></ul><ul><li>Web based enrolled membership program </li></ul><ul><li>Family Savings Goal Oriented: either by </li></ul><ul><ul><li>Family category, i.e. trip, college, retirement, home ownership or </li></ul></ul><ul><ul><li>Community oriented, i.e. church group, school, nonprofit or </li></ul></ul><ul><ul><li>Custom / personalized </li></ul></ul><ul><li>Downloadable software management tools (pay yourself first software) </li></ul><ul><li>Includes ways to increase earnings potential, self payment tools, account management, etc. </li></ul><ul><li>Allows for earnings to be accumulated, tacked and when ready applied to goals </li></ul>Features Of PYFF Membership Program Information & Tools Web Community PYF Tools Help In Capturing $ Account & Card Accumulating & Appling Funds Earnings Acceleration Retail Partners Goal Attainment Assistance In Use Of Earrings PYFF
  7. 7. Earnings Accumulation $$$ In PYFF Account Pay Check Bonuses Retail Partners Shopping Credit Card Programs Donations Family Contributions & Giving Fundraising Tithing Loyalty Programs Gift Card Funds Conversion Birthday Gifts Wedding Contributions Selling On Ebay Overtime % Of All Cash Flow
  8. 8. Earnings Improvement & Build Up $$$ While Saving PYFF Account <ul><li>Savings Account </li></ul><ul><li>Investment Tools </li></ul><ul><li>IRAs/401ks </li></ul><ul><li>Mutual Funds </li></ul><ul><li>Etc. </li></ul>
  9. 9. Goal Attainment $$$ Out PYFF Account Targeted Goal First Home Training Debit Reduction Church Need Special Needs Charity Program Starting A Business College Tuition Retirement Career Development Vacation & Travel New Car New Appliance Purchasing Assets Paying Of Home Loan
  10. 10. Income Expense Asset Taxes Rent Food Liability Job Save Invest Family Member 1 Income Expense Asset Taxes Rent Food Liability Job Save Invest Family Member 2 Income Expense Asset Taxes Rent Food Liability Job Save Invest Family Member 3 Pay Your Family First Program Diagram Concept From Rich Dad, Poor Dad Book, Page 174
  11. 11. PYFF Stand Program <ul><li>Standard Web </li></ul><ul><li>Base Account & Card </li></ul><ul><li>PYFF Branded </li></ul><ul><li>Off The Shelf Program </li></ul>PYFF Co-Branded Program Church XYZ <ul><li>Co-Branded Web </li></ul><ul><li>Co-Branded Account & Card </li></ul><ul><li>Co-Branded With Charity/Church </li></ul>PYFF Custom Program Financial Institution ABC <ul><li>Custom Web </li></ul><ul><li>Custom Account & Card </li></ul><ul><li>Total Customized </li></ul>PYFF Custom Program Business ZYX <ul><li>Custom Web </li></ul><ul><li>Custom Account & Card </li></ul><ul><li>Total Customized </li></ul>PYFF Personalized Program Nonprofit <ul><li>Standard Web </li></ul><ul><li>Base Account & Card </li></ul><ul><li>PYFF Branded </li></ul><ul><li>Limited Co-Branding </li></ul><ul><li>Pay Your Family First </li></ul><ul><li>Centralized Platform </li></ul><ul><li>Centralized Data </li></ul><ul><li>Centralized Accounts </li></ul><ul><li>Centralized Payments </li></ul>30,000 Feet View
  12. 12. Ideas On Revenue Stream <ul><li>Network As Private Currency – Power of Accumulated Funds </li></ul><ul><li>Ability to accumulate and aggregate funds into a private network and currency program (creates a pool of funds) – can invest, can manage and greater value, savings and returns </li></ul><ul><li>Spending funds through a stored value card program with filtered redemption option allows for negotiating commissions with merchants </li></ul><ul><li>Custom cards and materials allows for fee generation </li></ul><ul><li>Data accumulation and reports </li></ul><ul><li>Could develop a credit instrument for expense and liability management (capturing acquisition fees) and a stored value product for spending on asset accusation </li></ul><ul><li>Provide way for asset conversation (things like gift cards, checks, loyalty points, etc.) into account – processing or conversation fees </li></ul>
  13. 13. Ideas On Revenue Stream <ul><li>Network As Added Value – The Program Reach </li></ul><ul><li>Network could be developed so that it could be attached to other financial and/or loyalty programs out there (i.e. enhancement to loyalty programs, banking programs, credit unions, credit card programs, etc.) – set up fees, issuance fees, transaction fees, interchange fees/sharing, etc. </li></ul><ul><li>Custom Branding/White Label version – set up fees, issuance fees, transaction fees, etc. </li></ul><ul><li>Corporate Benefit Programs – Allows for offering helpful benefits to employees, partners and others supporting a company - Membership fees, set up fees, etc. </li></ul><ul><li>Credit Reports - Fees </li></ul><ul><li>Community Support – Allows companies to help people and local communities and outreach programs – Participation and sponsorship fees </li></ul>
  14. 14. Ideas On Revenue Stream <ul><li>Network As Loyalty Program – Buying Behavior & Funds In </li></ul><ul><li>Allows for the support of existing card programs out there, tapping into existing program earnings, rebates, etc. </li></ul><ul><li>Develop retail partners and promotions that allows for the accumulation of funds </li></ul><ul><li>Potential to develop a credit instrument (or charge card) that has favorable terms and again allows for the development of a loyalty program on buying behavior driving percentages to the PYFF account </li></ul><ul><li>Promotion and publishing revenues and opportunities – merchant partners, supporters, etc </li></ul><ul><li>Fundraising avenue – allowing for a platform to raise funds through a variety of fundraising channels, including scrip, products, etc. </li></ul>
  15. 15. Ideas On Revenue Stream <ul><li>High Level – To Be Shared With Members, Foundation, Partners </li></ul><ul><li>Filtered Merchant Commissions - (3% to 30% Potential Based On Transaction Amount) </li></ul><ul><li>Program Customization Fees - (Per Card Fee $1.50 to $5.00 Potential) </li></ul><ul><li>Credit Card Interchange Sharing - (10 to 30 Biases Points Potential) </li></ul><ul><li>Accusation Commissions - ($25 to $100 Per Potential) </li></ul><ul><li>Membership Fees – Sponsor paid or individual paid (Yearly, Monthly, One Time Potential $15 to $25 Per Potential) </li></ul><ul><li>Bank or Partner – Sponsor Fees ($50k to $200k) </li></ul><ul><li>Value Of Money – Interest (TBD by market and type) </li></ul><ul><li>Promotion & Advertising – Fees (Per Click, Banner, Sponsored Magazine, etc. $500k per year) </li></ul><ul><li>Fundraising Tools/Products – Commissions (2% to 20% off face value) </li></ul><ul><li>Loyalty & Partnership Marketing – Conversion of Points/Miles, Discount Off, etc. (TBD) </li></ul>
  16. 16. Things To Drill Down On <ul><li>Ability to get lower income and/or unbanked to utilize PYFF concept </li></ul><ul><li>Building trust between people who may live off the “grid” into a program that builds an account and data </li></ul><ul><li>Those that are not utilizing direct deposit of payroll and how to improve this acceptance, which would improve the results </li></ul><ul><li>Ongoing management requirements of the marketing, development, operations and support of this concept </li></ul><ul><li>Making it easy to understand, easy to set up and easy to use </li></ul>
  17. 17. Just A Start <ul><li>Best In Spirit, </li></ul><ul><li>David Carrithers, Chief Bee Keeper </li></ul><ul><li>707-484-3620 </li></ul><ul><li>[email_address] </li></ul><ul><li> </li></ul>