Google Adwords Results: - 208 clicks were generated in 7 days from Google Adwords ads - The average cost per click (CPC) was $0.22

1. TEAL Bridge
Final Presentation
Tiffany. Etosha. Alessandra. Lillian
3/12/2013
Interviews: 9/148 Total
Survey Responses: 163

2. Our Path

3. Video of our path
Link

4. Retractable High Heel Shoes
Additional Highlights

5. Pivots

6. Hypotheses Concluded
Key Partners Key Activities Value Prop Customer Customer
• Manufacturing • Product quality
• Aesthetics is chief
above all
Rel. Segment
partners will be • Customer service • Reliability
critical • Marketing/promo • Shoe should not look
• Retention
• High end shoe stores tions “functional”
• Referrals
need to carry the • Reducing 2-shoe
shoes in order for burden is important
high-end customers
• Versatility important
to see and purchase • Women who wear high
them Key Resources • #1 reason women wear heels to work would
• Online partnerships high heels to work is to Channels find our product
• Shoe designer is look professional
(e.g. Zappos) will be appealing
important imperative • The #1 reason women • Online
• Shipping • Funding wear high heels is to • Boutique & Dept
partnerships will be feel sexy/stylish stores not an option
critical • Customers find the
until demand proven
• TV partnerships (e.g. design of the (online & trunk
QVC) will be telescoping heel shows)
important aesthetically pleasing
Cost structure Revenue streams
• Customers purchase 3-4 pairs every year for going out
• Encourage repeat revenue by offering different styles for
different seasons
Total Validated Hypotheses: 22 Total Invalidated Hypotheses: 3

7. 3 Most Surprising Lessons
• Value Prop.: Aesthetics is chief above all
• Key Resources: Shoe designer is imperative
• Channels: Boutique & Dept stores not an
option until demand proven (online & trunk
shows)

8. Break-ups and Therapy
Additional Highlights

9. Hypotheses Concluded
Key Partners Key Activities Value Prop Customer Customer
• Fit w/counselor is most
• Developing match imp. attribute Rel. Segment
algorithm requires • Organizing group • Online acquisition
collaboration w/ therapy is a pain point • Only small segment of
model works for
psychologists for therapists people looking to be
therapy
matched with (paid)
• Insurance won’t pay for • Credentials / credibility
group counselors
therapy unassociated is an important attribute
• Adults experiencing a
w/ diagnosed condition • People don’t see need for timely and relevant
• Corporations unwilling “preventative” counseling trauma
to sponsor therapy Key • Urgency is a key Channels • Teenagers who don’t want
programs not covered
by insurance Resources requirement for seeking
a counselor
to talk to their parents or
friends about issues
• Price is a key • Couples going through
• Heavy marketing & PR • People strongly prefer
impediment to seeking a relationship issues
required to change to meet counselors in-
counselor • Adults who are isolated
perception person
• Anonymity is a and have shared
prerequisite for seeing a experience
counselor
Costs structure Revenue streams
• Customer Acquisition cost via Google Adwords campaign • Adverse selection problem when charging counselors monthly vs.
per-acquisition
• 1:1 in-person therapy match is a transactional business model
• Better control of revenue stream w/ group
Total Validated Hypotheses: 15 Total Invalidated Hypotheses: 6

10. 3 Most Surprising Lessons
• Value Prop.: Fit is the top priority when finding
a therapist, more than cost, creditability or
urgency.
• Revenue Streams: Adverse selection problem
when charging counselors monthly vs. per-
acquisition
• Key Partners: Insurance will not pay for
therapy for an undiagnosed condition

11. Mystery Mingle
Overview and Additional
Highlights
Mystery Mingle is a system which coordinates small to medium gatherings,
automates ice-breakers and aids in reservations or food ordering.

12. Ecosystem

13. Product-Market Fit

14. Key Metrics
Consumer sees ad 4 % delivery
3 Usage rate (% sign-up who plan)
(5% revenue
Facebook Plan Event
Mystery
Mingle Analyze
1 CPC friends’ profile Select prix- Order food
Site fixe menu for delivery
Google Guest list
suggestions 5
% prix fixe
2 Conversion Calendar
(15% revenue)
rate (sign-up) check: suggest
date/time Guests Guests
Customer signs-up pre-pay chips in
Select game
theme
Links to Facebook &
Google+ Organizer or friend hosts next event
% Participants
6 % Returning 7
turned organizers

15. Google Adwords CTR-Keywords
Mingle
208 clicks in 7 days dating service
Avg. Cost per click online dating site
online dating services
display networks= $0.16
0% 5% 10% 15% 20% 25%
Google Search=$1.54
CTR-Display Networks
grated.com
asiandating.com
faxo.com
metric-conversions.org
match.com
caribbeancupid.com
india-forums.com
answers.com
beautypageantnews.com
latinamericancupid.com
tinybytes.me
0% 20% 40% 60% 80% 100%

16. Business model leverages network effects
Number of organizers Network effects
800,000 P Participant
700,000
P
P P O Organizer
600,000
500,000
P O P
400,000
300,000 P P
200,000 P
100,000 P P
0
Year Year Year Year Year P O P
1 2 3 4 5
P P

17. Gross Margin
Profitability analysis Year 1 Year 5
2 Conversion rate (percent who sign-up) 10% 15%
3 Usage rate (percent who organize a mingle) 10% 18%
Total organizers 13,200 704,332
6 % Returning 50%
7 % Participants turned Organizers 10%
Delivery revenue
4 Percent of mingles ordering delivery thru site 15% 15%
Total delivery revenue $3,168 $422,599
Group in-restaurant revenue
5 Percent of mingles hosting prix-fixe event in restaurant 10% 10%
Total in-restaurant revenue $21,120 $3,380,795
Yearly ad revenue $28,512 $376,693
Total yearly revenue $52,800 $4,180,087
Average revenue/organizer $4 $6
Costs
1 CPC $0.12 $0.04
Average cost to accquire $12 $1
Gross Margin $(105,600) $3,652,087

18. Wireframe

19. Hypotheses Concluded
Key Partners Key Activities Value Prop Customer Customer
• Alleviates logistical
• Sell ads complexity of organizing Rel. Segment
• Build & maintain site events for friends • Create community of
• Recruit partners • Facilitates arranging • Organizers: Single
advocates through a
creative activities for a women
Facebook page
group • Organizers: Young wives
• Loyalty rewards
with active social lives, no
• Restaurants that deliver • Facilitates organizing • Referral incentives
kids
• Restaurant delivery groups of friends along
• Organizers: Single men
sites similar interests or stages
• Participants: Single
• Restaurants that host Key in life Channels people
large groups • People want to
Resources participate in a mystery
• Participants: Young
married couples with no
• Tech event organized by their
• Dedicated website kids
• Sales force: customer friend
• Customer acquisition • People wanting to
and partner acquisition • Facilitates collection of through Facebook & indirectly set up single
• PR funds Google ads friends
• Customer service agents
• Reduces social
awkwardness of getting
to know new people
Costs Revenue streams
structure
•Share of revenue from food ordered for delivery through the site
• Customer Acquisition Cost •Share of revenue for group prix-fixe pre-pay menu
• Build/maintain site •Ad revenue
• Overhead
•Booking fee from organizers
Total Validated Hypotheses: 23 Total Invalidated Hypotheses: 2
Total Untested: 5

20. Lessons from class
• Team dynamics can make or break a start-up
▫ Lot easier to work on something you are
passionate about
• Important to move beyond the right side of
the canvas
• Need to separate emotion from reason
▫ Recognize time to pivot

21. Acknowledgements
• TEAL Bridge would like to thank
▫ Mentors
▫ Interviewees
▫ Classmates

23. Backup

24. Metrics that matter
Key Metric Why it matters
1 Average CPC Determines acquisition cost
Conversion rate (visitors who Impacts customer
2
sign-up) acquisition cost
3 Usage rate (sign-ups who organize Impacts customer
a mingle) acquisition cost
4 % Mingles ordering delivery Key revenue stream
5 % Mingles organizing prix-fixe Key revenue stream
% Returning (% organizers who Impacts lifetime value
6 return subsequent year)
% Participants turned Acquisition cost virtually
7 Organizers zero; so lowers average
acquisition cost

25. Average acquisition cost declining due
to network effects
Acquisition cost per organizer
$14
$12
$10
$8
$6
$4
$2
$0
Year 1 Year 2 Year 3 Year 4 Year 5

26. Gross Margin Analysis Year 1 Year 2 Year 3 Year 4 Year 5
Population of US 300,000,000 300,000,000 300,000,000 300,000,000 300,000,000
Percent of US unmarried 44% 44% 44% 44% 44%
Percent of target population who clicks 1% 2% 6% 8% 10%
Conversion rate (percent who sign-up) 10% 10% 12% 14% 15%
Usage rate (percent who organize a mingle) 10% 12% 15% 16% 18%
New Organizers 13,200 31,680 142,560 236,544 356,400
Participants 105600 253,440 1,140,480 1,892,352 2,851,200
Participants turned Organizers 10,560 25,344 114,048 189,235
Existing Organizers 0 6,600 19,140 80,850 158,697
Total organizers 13,200 48,840 187,044 431,442 704,332
% Returning 50% 50% 50% 50%
% Participants turned Organizers 10% 10% 10% 10%
Number of participants per mingle 8 8 8 8 8
Number of mingles organized per year 2 2 2 2 2
Mingle revenue
Percent of mingles paying fee 0% 0% 0% 0% 0%
$
Charge per mingle organized through site $ 4.99 $ 4.99 $ 4.99 $ 4.99 4.99
Total mingle revenue $ - $ - $ - $ - $ -
Delivery revenue
Percent of mingles ordering delivery thru site 15% 15% 15% 15% 15%
$
Average order amount per person $ 5 $ 5 $ 5 $ 5 5
Commission on order 2% 3% 4% 5% 5%
$
Total delivery revenue $ 3,168 $ 17,582 $ 89,781 $ 258,865 422,599

27. Group in-restaurant revenue
Percent of mingles hosting event in-restaurant
through site 10% 10% 10% 10% 10%
Average order amount per person $ 20 $ 20 $ 20 $ 20 $ 20
Commission on order 5% 10% 15% 15% 15%
Total in-restaurant revenue $ 21,120 $ 156,288 $ 897,811 $ 2,070,922 $ 3,380,795
Ad Revenue
Number of visits/yr 1,425,600 3,030,720 9,416,352 14,011,536 18,834,658
Ad revenue CPM $4 $4 $4 $4 $4
Number of ads site 5 5 5 5 5
Yearly ad revenue $ 28,512 $ 60,614 $ 188,327 $ 280,231 $ 376,693
Total yearly revenue $ 52,800 $ 234,485 $ 1,175,919 $ 2,610,018 $ 4,180,087
Average revenue/organizer $ 4.0 $ 4.8 $ 6.3 $ 6.0 $ 5.9
Costs
CPC $ 0.12 $ 0.10 $ 0.08 $ 0.06 $ 0.04
Average cost to accquire $ 12 $ 5 $ 3 $ 1 $ 1
Total Ad expense $ 158,400 $ 264,000 $ 633,600 $ 633,600 $ 528,000
Gross Margin $ (105,600) $ (29,515) $ 542,319 $ 1,976,418 $ 3,652,087

28. What would it take to be a $10M/Yr
revenue business
• 20% usage rate
• 10 people per mingle
• Each organizer conducting 3 mingles/year
• 55% organizers return YoY
• 20% participants turned organizers

29. Google Adwords
Lillian-can you make
this pretty
208 clicks in 7 days
Avg. CPC = $0.22