Friends of Friends - Technology Entrepreneurship Opportunity Execution Project
Friends of Friends (Froffr) Team Connectors Stanford Venture Lab Technology Entrepreneurship Fall 2012
Our Story More and more of Audrey’s single friends were requesting her to introduce them to her other single friends, but she encountered some challenges: These friends were living and working in different cities They did not have common circles of friends Some of her friends who were dating online were also not having much luck finding quality dating partners. Upon further research, Audrey found that in 2010, approximately 30- 35% of all couples met through friends. After pitching the idea and creating a team for the Venture Lab Technology Entrepreneurship class three other students also expressed their interest in the startup idea: Alan, Ubi, and Will. Our surveys conducted when we were testing our value proposition showed that the majority of customers wanted to safely meet new people for a certain purpose or activity. Therefore, not only could this website be used for dating, it could used for introducing friends for any casual activity.
The Opportunity Meeting Introducing• Lack of means for people in their twenties • Awkward introductions via e-mail or in to turn connections online into long-term person relationships in person • Unable to introduce friends personally• Lack of safety meeting others online due to time or distance• Too much time spent searching online for • Finding the right context for introductions new people to meet in the same location • Forgetting names• Difficulty finding common interests • Not knowing the right fit• Lack of privacy in online meet up websites• Difficulty scheduling meeting times Total internet users in 2010: 240M Users ages 20-29: 42.7M Potential customers based on a 7.4% market share: 2.4M Sources: Market data based on www.census.gov and www.internetworldstats.com. Market share based on average market share of online dating and meetup sites such as match.com and meetup.com
The Product Prototype here: http://froffr.com Convenience and usability Introducing friends online is easier and faster than setting up a live, in-person meeting. Customers can link their Facebook, E-mail, Twitter, Google+, and LinkedIn accounts to populate all their friends and easily introduce them all in once location The product will streamline this process while providing features such as: matcher reviews and an incentive system to set up positive matches. Meaningful, quality matches Due to the smaller degree of separation, there would be a greater likelihood of a long-term relationship forming that using sites that match you up with strangers. After being introduced, users will have a more focused platform to start new conversations with follow-ups and suggested activities.
The Product Features Purpose or objective of • Specify common interests or goals as part of the introduction introduction template Commitment / Follow-up • We will provide e-mail follow-up on all introductions or introduction requestsReal-time feedback and a sense • Future mobile website and communication through of urgency to the interactions mobile messages Less Awkwardness • Common interests, activities, and friends reduces awkwardness Scheduled meeting time • If calendar is imported, we can schedule meetings during common available timesConfirmation that parties agree • Users will click on an “agree” or “like” button to confirm on meeting interest in an activity or person Most comfortable introduction through friends or activities • Show common friends and suggest common activities
Sales & Marketing Facebook Launched two day marketing campaign at $15 per day Based on keywords: friendship, friends, dating, matchmaking, introduction, finding new friends, find friends We didnt see results at the $1 and $1.50 bid amount. I upped it to $2 on day 2 and thats where we got 17 clicks (from 83K views) and paid 0.88 per click. We would have had more clicks if we allocated a bigger budget or or if FB had the budget rollover feature. StumbleUpon Launched two day marketing campaign at $12 per day Directed toward people ages 18-35 with interests of: Business, Dating Tips, Education, Married Life, Matchmaking, Relationships, Internet Tools, Self Improvement, University/College, Facebook Applied Google Analytics tracking to the website Other (Craigslist, Facebook Groups, and Reddit) Craigslist: Advertised in the platonic relationships section Facebook: Posted in dating and meetup related fb groups Reddit: Asked questions and posted links in 10 subreddits
Partnerships and Distributions Key partnerships with companies that will sponsor or provide discounts to casual activities such as movies, restaurants, concerts, etc. Customers can link their Facebook, E-mail, Twitter, Google+, and LinkedIn accounts to populate all their friends that they can introduce to each other Website • The need to invite friends in order to create introductions on our website will add users to the site Partners & Affiliates • Promote through activities that we partner with Social Media • Avenues such as Facebook and Twitter will help us get the word out Pilot Groups and Interviews • Gain a strong early evangelist following Create searchable content and buzz • Through a blog and articles on other blogs/websites, create excitement and PR around Froffr Mobile application • Eventually, this will also have a mobile version for using on-the-go
Revenues & Costs Revenues Freemium model: premium accounts which will provide additional features such as introducing or meeting 2nd or 3rd degree contacts Online advertising: Companies that would like to advertise activities or events through our website. Pricing model similar to Facebook or GoogleAdwords once we have obtained a large enough audience Mobile ad revenue once mobile app is launched Cost Structure Focuses on creating the best value for its customers while maintaining a free, user-friendly website. Fixed costs: utilities, rent, website domain name, SG&A Variable costs: server costs, employee salaries (depending on how many are hired), marketing/advertising
Funding • Bootstrap product using our own team to develop and bring to market 1 • Obtain funding from angel investors 2 • Obtain funding from Venture Capital firms once user traction has increased 3
Risks & Mitigations Risks Mitigations • Lack of adoption due to: • Increase adoption rate by: • Complications setting up • Simple, user friendly profile interface • Complications setting up • Familiar messaging introductions system like e-mail • Awkwardness in online • Provide ice breaker such introductions as mutual “like” button • Competitor sites more • Build incentives such as aggressively promoting status recognition, news introducing friends of feed, and activity discounts friends to differentiate product • Technical difficulties in • Be flexible to pivot the idea implementation as necessary