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2012 Growing Online – David Wolfe
Online – objectives
• Develop a new customer acquisition channel
   – High volume
   – Cost effective
   – Target demand against existing content
• Sell a standardized set of products online
   – Learn how to resale products
   – Sell online
   – Create content to support emerging search demand
• Improve key elements of the user experience




                                                        2
Online – objectives & key hypothesis
• Develop a new customer acquisition channel
   – Acquisition hypothesis  We can acquire visitors to our properties cost effectively
   – Market size hypothesis  Meaningful online demand for our product exists
   – Activation hypothesis  We can persuade visitors to trial our content products online

• Sell a standardized set of products online
   ‒ Revenue hypothesis       We can persuade trialers to purchase products online
   ‒ Retention hypothesis     We can retain our online subscribers over time
   ‒ Resale hypothesis        We can sell our products to more than one individual

• Improve key elements of the customer experience
   ‒ Referral hypothesis      We can persuade subscribers to refer others to use our products
   ‒ Delight hypothesis       We can provide an engaging experience to our users




                                                                                             3
Online – validating hypothesis with metrics
• Develop a new customer acquisition channel
   ‒ Acquisition hypothesis  # visits, eCPC
   ‒ Market size hypothesis # of sources, size of source
   ‒ Activation hypothesis  visit/trial conversion rate, avg(trial length), # trialers

• Sell a standardized set of products online
   ‒ Revenue hypothesis         trial/subscriber conversion rate, avg(revenue per subscriber),
     # subscribers
   ‒ Retention hypothesis       avg(subscriber churn)
   ‒ Resale hypothesis          avg(# of subscribers per product)

• Improve key elements of the customer experience
   ‒ Referral hypothesis        avg(# referrals per subscriber)
   ‒ Delight hypothesis         net promoter score




                                                                                                  4
Online – roadmap
                          Q1                                   Q2                             Q3                     Q4
                 Create Online                  Optimize & Grow                 New Distribution-        New Distribution-
Focus




                                                                                 Apps & Mobile           Partner Platform


             • Redesign and enhance          • Continue re-designing core      • Distribute content &    • Create affiliate
             primary user experience         features and functionality.       services via              marketplace
Objectives




             • Test SEM, FB, & LinkedIn      • Implement test                  • Open Social & FB        •Syndicate content
             as key traffic sources          frameworks.                       applications
                                             Recommendation Engine                                       • Affiliate/partner portal
             • Identify & curate key                                           • Mobile experiences
             content products                • Impact all core metrics


             Home Page                                                         XHTML/WAP application    Partner/affiliate portal
                                              A/B testing framework
              Event Stream                                                     IPhone Application       Co-branded experience
                                              Price sensitivity testing
Approach




              Trial experience & wizard     framework                          Open Social app(s)       Partner sign-up
              Company & Industry profiles   Recommendation engine             FB app(s)

              Delivery vehicle management   Referral tools                    API

              Purchase                       Personalized email campaigns
                                             (win back, upsell, new product,
                                             etc.)




                                                                                                                                      5
Online – roadmap/hypothesis mapping
             New customer acquisition channel                    Sell standardized products                    Improve user exp

              Acquisition         Activation           Revenue           Retention            Resale      Referral          Delight

           Logged out         Landing pages &
           website            initial trial exp

 Q1 –      ** acquisition     Trial wizard          Product           Product           Product                         Core stream
 create    marketing                                discovery         discovery         discovery                       experience
 online
           ** acquisition                           Purchase,         Delivery                                          Core stream
           marketing + SEO                          Delivery Pref     preferences                                       experience
           frame
           ** acquisition     A/B testing frame-    Price point A/B                                    Referral tools
           marketing          work                  testing
           + APIs
 Q2 -      ** acquisition     ** trial conversion   Upsell            Recommend         Recommend
optimize   marketing          testing               messaging         engine            engine
                                                    system
           ** acquisition     ** trial conversion   ** price point    Multi-user
           marketing          testing               testing           account mgt,
                              + Intelligent CRM                       Win-back
           ** acquisition     ** trial conversion   Mobile web        Mobile web
           marketing+ Open    testing
Q3- apps   Social apps
& mobile
           ** acquisition     ** trial conversion   Mobile –          Mobile –                                          Mobile –
           marketing          testing               native app        native app                                        native app
                                                                                                                                      6
Online Customer Acquisition
Current client acquisition & content investment model




                                                        8
Online client acquisition & content investment model




                                                       9
Online/Direct Sales – Customer Lifecycle Comparison
                                    Direct Sales               Online

                              Brand and Lead Driven            Online Demand Driven
    High quality lead-driven clients from networks, channel    SEM/SEO exposes our current coverage universe to interested
   partnerships, etc. Focus on developing value proposition    searchers, funneling them to keyword-driven landing pages.
                                              and branding     Additionally, Google trends & insights exposes emerging
                                                               demand for new content products (new coverage)

                  Acquire Customer for Free Trial              Acquire Customer for Free Trial
BD can create highly-directed, customized trial coverage for   Begin customer on time-limited free trial, no new
      clients. Discovery is done through conversation and      companies/topics available – 0% cost trial model
                                           solution-building

                                            Prove Value        Prove Value
     Persistent monitoring of trial by BD, coverage quality    Recommend additional products and automated
   monitored by Operations. Coverage changes frequently.       monitoring of usage patterns. Present customer with
       Begin discussing contract terms leading towards …       milestones leading towards…

                                                  Invoice      Get Payment Information
      Contract negotiation concludes and often quarterly to    Customer enters credit card payment information into site –
                          year-long contracts are executed     self-service of their news stream


                                           Relationship        Maintain and Improve Value
       Continue focusing on high-touch relationship through    Use brightwire.com to continue upselling user, provide
              Client Development team, upsell and improve      value through content and recommendations
                                  directionality of coverage


                                                                                                                         10
Online growth phases
1. Amortize existing content – Q1/Q2
   – Form “newswire” (21) products based upon existing high flow content opportunities. Sell
     them online. Drive new traffic by purchasing associated key words
   – Sell existing company tickers (264) online. Drive new traffic by purchasing related keywords

2. Expand coverage universe – Q3/Q4
   – Identify top 10 searched for industry/region combinations we currently do not cover.
     Modify GMA coverage. Sell them online. Drive traffic by purchasing relevant key words.
   – Identify top 100 searched for companies we do not currently cover. Modify GMA coverage.
     Sell them online. Drive traffic by purchasing relevant key words.
   – Identify top 10 searched for financially focused topics we do not currently cover. Modify
     GMA coverage. Sell them online. Drive traffic by purchasing relevant key words.




                                                                                                 11
Existing resalable newswire products (21)
               Newswire name          Newsflow: Last 90 Days   Newsflow: Daily Average
      Europe                                  16,999                    188.9
      Asia Pacific                            11,665                    129.6
      Finance                                 10,688                    118.8
      North America                           9,100                     101.1
      Europe Finance                          5,984                      66.5
      Materials & Natural Resources           5,557                      61.7
      Consumer                                5,468                      60.8
      Technology                              4,746                      52.7
      Latin America                           4,230                      47.0
      Industrials                             4,135                      45.9
      Energy & Utilities                      4,098                      45.5
      Media & Telecom                         3,263                      36.3
      Asia Pacific Finance                    2,579                      28.7
      Middle-East & Africa                    2,514                      27.9
      Asia Pacific Consumer                   2,315                      25.7
      Europe Industrials                      2,175                      24.2
      North America Finance                   2,165                      24.1
      Europe Energy & Utilities               2,105                      23.4
      North America Technology                1,975                      21.9
      Asia Pacific Technology                 1,939                      21.5
      Europe Consumer                         1,815                      20.2

                                                                                         12
Existing resalable company ticker products (264)
                                               Top 14 Companies (out of 264)

                                  Dena Co. Ltd.

                                  Gree, Inc.

                                  Li & Fung Limited

                                  Chaoda Modern Agriculture (Holdings) Limited

                                  Evergrande Real Estate Group Limited

                                  SINA Corporation

                                  Youku.com Inc.

                                  Tencent Holdings Limited

                                  Cree, Inc.

                                  Exxon Mobil Corporation

                                  Mindray Medical International Limited

                                  Yamada Denki Co. Ltd.

                                  K's Holdings Corporation

                                  Sanrio Co. Ltd.



                                                                                 13
Harvesting demand (SEM) for existing industry newswires
  •      Keyword Targets & CPC Determination Process
            – 65 total industry newswires (5 geographies, 10 industries, 50 combinations)
            – 21 of which are robust enough to market (throughput of 20+ news items per day)
            – Up to 5 “nicknames” created for each newswire (e.g. Asian from Asia Pacific)
            – For each name & nickname, 6 variations used to create keyword set (e.g. Asian Tech News,
              Asian Tech Research, Asian Tech Sector News, Asian Tech Sector Research, etc.)
            – Google Keyword tool used to derive average searches & approximate CPC for each keyword
              (CPC $1.35 - $2.52)


                165,734,560                       X   0.5% X 3.5% = 29,004 trials
                     Google searches in the US         Of searchers     Who visit us,
                     (estimated) based on a 415        Click-Through    start a trial of
                            Keyword set               (potential 800K    BrightWire
                                                          visitors)     service for at
                                                                          least one
                                                                           industry



* approximate result from Q1 2011 SEO/SEM Test)


                                                                                                    14
Harvesting demand(SEM) for existing companies covered
   •      Keyword Targets & CPC Determination Process
             – 264 total companies currently covered by BrightWire (1.5x average languages/company)
             – Up to 2 “nicknames” created for each company (e.g. BYD from BYD Company Limited)
             – For each name & nickname, 3 variations used to create keyword set (e.g. BYD, BYD News,
               BYD Research)
             – Google Keyword tool used to derive average searches & approximate CPC for each keyword
             – Brand names (e.g. Acer) and likely error-prone keywords (e.g. tam research) removed (CPC
               $.40 - $1.35)


                    12,415,213                      X   0.5% X 3.5% = 2,173 trials
                       Google searches in the US         Of searchers     Who visit us,
                      (estimated) based on a 1968        Click-Through    start a trial of
                              Keyword set               (potential 800K    BrightWire
                                                            visitors)     service for at
                                                                            least one
                                                                            company



 * approximate result from Q1 2011 SEO/SEM Test)


                                                                                                      15
Harvesting demand(SEM) for expansion industry newswires
   •      Keyword Targets & CPC Determination Process
             – 21 of 65 total industry newswires included in the initial roll-out
             – Remaining 44 newswires not included in initial roll-out provide opportunity for expansion
             – Expected inclusion of 10 additional newswire per expansion period
             – Up to 5 “nicknames” created for each newswire (e.g. Asian from Asia Pacific)
             – For each name & nickname, 6 variations used to create keyword set (e.g. Asian Tech News,
               Asian Tech Research, Asian Tech Sector News, Asian Tech Sector Research, etc.)
             – Google Keyword tool used to derive average searches & approximate CPC for each keyword
               (CPC $1.35 - $2.52)

                    41,817,856                      X   0.5% X 3.5% = 7,318 trials
                      Google searches in the US          Of searchers     Who visit us,
                     (estimated) based on a 1,123        Click-Through    start a trial of
                             Keyword set                (potential 800K    BrightWire
                                                            visitors)     service for at
                                                                            least one
                                                                            company



 * approximate result from Q1 2011 SEO/SEM Test)


                                                                                                       16
Harvesting demand – social media
•   LinkedIn CPC segment data
     – Targeting major US geographies, London, Australia & Hong Kong and Legal, Financial,
       Research and Consulting industries
     – Produces a target audience of 658,057
     – Average suggested CPC of $3.00

•   Facebook CPC segment data
     – Targeting those users interested in financial services, investment management, ETFs,
       Stock Market, Market Research, Public Relations, M&A, Investment Banking, Venture
       Capital, and Hedge Funds
     – Produces a target audience of 290,200 users
     – Average suggested CPC of $0.94 (vs. ~$1.50 from 2011 test (used in model))




                                                                                              17
Unpaid demand acquisition approaches
•   SEO
     – Optimize information rich sign-up pages for search engine placement
     – Create crawlable industry, company, & topic based directories
     – Publish all information assets
     – Train GMAs
•   Viral/referral models
     – Build simple mechanisms for sharing & micro publishing
            Via Facebook
            Via LinkedIn
            Via Twitter
            Via email
     – Create simple signup funnels for referees
     – Experiment with incentives



                                                                             18
Model Inputs
                                               Mar '12    Apr '12    May '12    Jun '12     Jul '12    Aug '12     Sep '12    Oct '12    Nov '12     Dec '12     Jan '13     Feb '13

Trialer / Subscription Metrics
SEM Vi s i tor to Tri a l er %                   3.7%       3.7%       3.7%        3.8%        3.8%       3.8%        4.9%       4.9%        4.9%        6.0%        6.0%        6.0%
Fa cebook Vi s i tor to Tri a l er %             3.5%       3.5%       3.5%        3.8%        3.8%       3.8%        4.9%       4.9%        4.9%        6.0%        6.0%        6.0%
Li nkedIn Vi s i tor to Tri a l er %             3.5%       3.5%       3.5%        3.8%        3.8%       3.8%        4.9%       4.9%        4.9%        6.0%        6.0%        6.0%
Di s pl a y Ad Vi s i tor to Tri a l er %        3.5%       3.5%       3.5%        3.8%        3.8%       3.8%        4.9%       4.9%        4.9%        6.0%        6.0%        6.0%
Orga ni c/Vi ra l Vi s i tor to Tri a l er %     3.5%       3.5%       3.5%        3.8%        3.8%       3.8%        4.9%       4.9%        4.9%        6.0%        6.0%        6.0%
Referra l Vi s i tor to Tri a l er %            20.0%      20.0%      20.0%       20.0%       20.0%      20.0%       20.0%      20.0%       20.0%       20.0%       20.0%       20.0%
Pa i d Tri a l er to Subs cri ber %              8.0%       8.0%       8.0%        9.0%        9.0%       9.0%       10.0%      10.0%       10.0%       11.0%       11.0%       11.0%
Orga ni c/Vi ra l Tri a l er to Sub %           12.0%      12.0%      12.0%       13.0%       13.0%      13.0%       14.0%      14.0%       14.0%       15.0%       15.0%       15.0%
Revenue per Subs cri ber per Month               $100       $100       $100        $100        $100       $120        $120       $120        $120        $120        $120        $120
Subs cri ber Churn                               4.0%       4.0%       4.0%        4.0%        4.0%       4.0%        4.0%       4.0%        4.0%        4.0%        4.0%        4.0%

Spend Metrics
SEM (Adwords ) Spend - Indus tri es             $7,368     $7,368     $7,368     $17,895    $17,895     $17,895     $24,000    $24,000     $48,000     $96,000   $214,000     $214,000
SEM (Adwords ) Spend - Compa ni es             $12,632    $12,632    $12,632     $27,368    $27,368     $27,368     $48,000    $48,000     $96,000    $192,000   $406,000     $406,000
Fa cebook Spend                                      --         --         --     $8,421     $8,421      $8,421     $24,000    $24,000     $48,000     $96,000   $192,000     $192,000
Li nkedIn Spend                                      --         --         --     $6,316     $6,316      $6,316     $18,000    $18,000     $36,000     $72,000   $100,000     $100,000
Di s pl a y CPM Spend                                --         --         --          --         --          --     $6,000     $6,000     $12,000     $24,000    $48,000      $48,000

Cost Metrics
SEM (Adwords ) CPC - Indus tri es                $1.35      $1.35      $1.35       $1.35       $1.35      $1.35       $1.95      $1.95       $1.95       $1.95       $2.52       $2.52
SEM (Adwords ) CPC - Compa ni es                 $0.40      $0.40      $0.40       $0.40       $0.40      $0.40       $0.85      $0.85       $0.85       $0.85       $1.35       $1.35
Fa cebook CPC                                    $1.50      $1.50      $1.50       $1.50       $1.50      $1.50       $1.50      $1.50       $1.50       $1.50       $1.50       $1.50
Li nkedIn CPC                                    $2.85      $2.85      $2.85       $2.85       $2.85      $2.85       $2.85      $2.85       $2.85       $2.85       $2.85       $2.85
Di s pl a y eCPM                                 $7.00      $7.00      $7.00       $7.00       $7.00      $7.00       $7.00      $7.00       $7.00       $7.00       $7.00       $7.00

Specific Metrics
Di s pl a y CPM Cl i ck Through                  0.1%       0.1%       0.1%        0.1%        0.1%       0.1%        0.1%       0.1%        0.1%        0.1%        0.1%        0.1%
Vi s i ts from Orga ni c Sea rch (% pa i d)      1.0%       1.0%       1.0%        3.0%        3.0%       3.0%        5.0%       5.0%        5.0%        7.0%        7.0%        7.0%
Vi s i ts from Di rect Tra ffi c (% pa i d)      0.3%       0.3%       0.3%        0.5%        0.5%       0.5%        0.8%       0.8%        0.8%        1.0%        1.0%        1.0%
% Subs (pa i d) l i kel y to refer (new)        10.0%      10.0%      10.0%       10.0%       10.0%      10.0%       10.0%      10.0%       10.0%       10.0%       10.0%       10.0%
Sends per Sha rer                                   60         60         60          60          60         60          60         60          60          60          60          60




                                                                                                                                                                                 19
Model – GMA Cost
                                     Mar '12       Apr '12   May '12   Jun '12    Jul '12        Aug '12    Sep '12    Oct '12    Nov '12        Dec '12        Jan '13     Feb '13
GMA Salary Per Year                  $60,000       $60,000   $60,000   $60,000    $60,000        $60,000    $60,000    $60,000     $60,000        $60,000       $60,000      $60,000
GMA Salary Per Month                   5,000         5,000     5,000     5,000      5,000          5,000      5,000      5,000       5,000          5,000         5,000        5,000

GMA Cost - Newswires
GMAs per newswire                          4             4         4         4          4              4          4          4           4              4             4            4
GMA Cost Per Newswire                $20,000       $20,000   $20,000   $20,000    $20,000        $20,000    $20,000    $20,000     $20,000        $20,000       $20,000      $20,000

Subs Per Newswire                      1,000         1,000     1,000     1,000      1,000          1,000      1,000      1,000       1,000          1,000          1,000       1,000
Total Subscribers                        127           249       365       720      1,060          1,387      1,894      2,380       3,410          6,402         10,873      15,164

Prescribed Newswires                          1         1         1          1              2          2          2          3              4              7          11          16
Incremental Newswires - over 21*              --        --        --         --             --         --         --         --             --             --          --          --
  Incremental GMA Cost                        --        --        --         --             --         --         --         --             --             --          --          --

* Existing Derived or "Pseudo" Newswires

GMA Cost - Companies Online
Companies Per GMA                             20        20        20         20         20             20         20         20          20             20            20           20
GMAs Per Company                            0.05      0.05      0.05       0.05       0.05           0.05       0.05       0.05        0.05           0.05          0.05         0.05
GMA Cost Per Company                       $250      $250      $250       $250       $250           $250       $250       $250        $250           $250          $250         $250

Subs Per Company                             20        20        20         20         20             20         20         20          20             20             20          20
Total Subscribers                           127       249       365        720      1,060          1,387      1,894      2,380       3,410          6,402         10,873      15,164

Prescribed Companies                          7        13        19         36          54            70         95        120         171            321           544          759
Incremental Companies - over 264*             --        --        --         --          --            --         --         --          --            57           280          495
  Incremental GMA Cost                        --        --        --         --          --            --         --         --          --       $14,250       $70,000     $123,750

Total Incremental GMA Cost                    --        --        --         --             --         --         --         --             --    $14,250       $70,000     $123,750

* Existing Company Coverage




                                                                                                                                                                                20
Model – Paid Marketing (Display & Search)
                                   Mar '12   Apr '12   May '12   Jun '12    Jul '12        Aug '12    Sep '12   Oct '12   Nov '12    Dec '12    Jan '13    Feb '13

Display Advertising
CPM Spend (display, adnetworks)         --        --        --         --             --         --    $6,000    $6,000    $12,000    $24,000    $48,000    $48,000
eCPM                                 $7.00     $7.00     $7.00     $7.00      $7.00          $7.00      $7.00     $7.00      $7.00      $7.00      $7.00      $7.00
 Click through rate %                0.1%      0.1%      0.1%       0.1%       0.1%           0.1%       0.1%      0.1%       0.1%       0.1%      0.1%        0.1%
Visits From CPM Spend                   --        --        --         --             --         --       857       857      1,714      3,429      6,857      6,857
Visit to Trialer conversion %        3.5%      3.5%      3.5%       3.8%       3.8%           3.8%       4.9%      4.9%       4.9%       6.0%      6.0%        6.0%
 Trialers from CPM Spend                --        --        --         --             --         --        42        42         84        205        411        411


SEM (Adwords) Advertising
SEM (Adwords) Spend - Industries    $7,368    $7,368    $7,368   $17,895    $17,895        $17,895    $24,000   $24,000    $48,000    $96,000   $214,000   $214,000
SEM (Adwords) CPC - Industries       $1.35     $1.35     $1.35     $1.35      $1.35          $1.35      $1.95     $1.95      $1.95      $1.95      $2.52      $2.52
SEM Clicks / Visits - Industries     5,458     5,458     5,458    13,255     13,255         13,255     12,308    12,308     24,615     49,231     84,921     84,921

Visit to Trialer conversion %        3.7%      3.7%      3.7%       3.8%       3.8%           3.8%       4.9%      4.9%       4.9%       6.0%      6.0%        6.0%
 Trialers from SEM - Industries        201      201       201        503        503            503        603       603      1,206      2,953      5,095      5,095

SEM (Adwords) Spend - Companies    $12,632   $12,632   $12,632   $27,368    $27,368        $27,368    $48,000   $48,000    $96,000   $192,000   $406,000   $406,000
SEM (Adwords) CPC - Companies        $0.40     $0.40     $0.40     $0.40      $0.40          $0.40      $0.85     $0.85      $0.85      $0.85      $1.35      $1.35
SEM Clicks / Visits - Companies     31,579    31,579    31,579    68,421     68,421         68,421     56,471    56,471    112,941    225,882    300,741    300,741
Visit to Trialer conversion %        3.7%      3.7%      3.7%       3.8%       3.8%           3.8%       4.9%      4.9%       4.9%       6.0%      6.0%        6.0%
 Trialers from SEM - Companies       1,165     1,165     1,165     2,600      2,600          2,600      2,767     2,767      5,534     13,552     18,044     18,044

   Trialers from SEM - Total         1,366     1,366     1,366     3,103      3,103          3,103      3,370     3,370      6,740     16,505     23,139     23,139




                                                                                                                                                               21
Model – Paid Marketing (Social Networking)
                                Mar '12   Apr '12   May '12   Jun '12   Jul '12    Aug '12   Sep '12   Oct '12   Nov '12    Dec '12    Jan '13    Feb '13

Facebook Advertising
Facebook Ad Spend                    --        --        --    $8,421    $8,421     $8,421   $24,000   $24,000    $48,000    $96,000   $192,000   $192,000
Facebook CPC                      $1.50    $1.50      $1.50     $1.50     $1.50      $1.50     $1.50     $1.50      $1.50      $1.50      $1.50      $1.50
Clicks / Visits From Facebook        --        --        --     5,614     5,614      5,614    16,000    16,000     32,000     64,000    128,000    128,000

Visit to Trialer conversion %     3.5%      3.5%      3.5%       3.8%      3.8%       3.8%      4.9%      4.9%       4.9%       6.0%      6.0%        6.0%
 Trialers from Facebook              --        --        --       213       213        213       784       784      1,568      3,840      7,680      7,680


LinkedIn Advertising
LinkedIn Ad Spend                    --        --        --    $6,316    $6,316     $6,316   $18,000   $18,000    $36,000    $72,000   $100,000   $100,000
LinkedIn CPC                      $2.85    $2.85      $2.85     $2.85     $2.85      $2.85     $2.85     $2.85      $2.85      $2.85      $2.85      $2.85
Clicks / Visits From LinkedIn        --        --        --     2,216     2,216      2,216     6,316     6,316     12,632     25,263     35,088     35,088

Visit to Trialer conversion %     3.5%      3.5%      3.5%       3.8%      3.8%       3.8%      4.9%      4.9%       4.9%       6.0%      6.0%        6.0%
 Trialers from LinkedIn              --        --        --        84         84        84       309       309        618      1,515      2,105      2,105




                                                                                                                                                      22
Model – Paid Marketing Summary
                                        Mar '12   Apr '12   May '12   Jun '12   Jul '12   Aug '12    Sep '12     Oct '12   Nov '12    Dec '12    Jan '13     Feb '13

New Trialers from Paid Marketing          1,366     1,366     1,366     3,400     3,400      3,400      4,505      4,505      9,010     22,065     33,335      33,335

Total Monthly Online Mktg Cost          $20,000   $20,000   $20,000   $60,000   $60,000    $60,000   $120,000   $120,000   $240,000   $480,000   $960,000    $960,000
Effective Online Cost per Trial (CPL)    $14.64    $14.64    $14.64    $17.65    $17.65     $17.65     $26.64     $26.64     $26.64     $21.75     $28.80      $28.80

Accumulated Paid Mktg Trialers            1,366     2,732     4,098     7,498    10,898     14,298     18,803     23,308     32,318     54,383     87,718     121,053

Paid Trialer to Subscriber %              8.0%      8.0%      8.0%       9.0%      9.0%      9.0%      10.0%      10.0%      10.0%      11.0%      11.0%        11.0%
New Subscribers from Paid Mktg             109       109       109        306       306       306        451         451        901      2,427      3,667        3,667
Effective Online CPA                    $183.02   $183.02   $183.02   $196.08   $196.08    $196.08    $266.37    $266.37    $266.37    $197.76    $261.81     $261.81

Subs from Paid, Beg. of Period               --      109       214        315       608       890       1,160      1,564      1,952      2,775      5,091        8,555
Monthly Churn                             4.0%      4.0%      4.0%       4.0%      4.0%      4.0%       4.0%        4.0%       4.0%       4.0%      4.0%         4.0%

Subs from Paid, End of Period              109       214       315        608       890      1,160      1,564      1,952      2,775      5,091      8,555      11,879
Revenue per Subscriber                    $100      $100      $100       $100      $100      $120       $120        $120       $120       $120      $120         $120

Payback Period (Months)                    1.83      1.83      1.83      1.96      1.96       1.63       2.22       2.22       2.22       1.65       2.18         2.18

 TOTAL REVENUE - SUBS (Paid)             $5,464   $16,173   $26,455   $46,160   $74,914   $123,021   $163,490   $211,010   $283,660   $472,003   $818,762   $1,226,034




                                                                                                                                                                  23
Model – Organic / Viral Marketing
                                      Mar '12    Apr '12   May '12   Jun '12    Jul '12    Aug '12    Sep '12    Oct '12    Nov '12    Dec '12    Jan '13    Feb '13

Organic Search Visits
Organic Search Visitors                  370        370       370      2,685      2,685      2,685      4,598      4,598       9,195     25,746     38,892     38,892
Visit to Trialer conversion %           3.5%       3.5%      3.5%      3.8%       3.8%       3.8%       4.9%       4.9%        4.9%       6.0%       6.0%       6.0%
  Trialers from Organic Search             12         12        12       102        102        102        225        225         450      1,544      2,333      2,333

Direct Traffic Visits
Direct Traffic Visitors                    93         93        93       448        448        448        690        690       1,379      3,678      5,556      5,556
Visit to Trialer conversion %           3.5%       3.5%      3.5%       3.8%       3.8%       3.8%       4.9%       4.9%       4.9%       6.0%       6.0%       6.0%
  Trialers from Direct Traffic              3          3         3         17         17         17         33         33         67        220        333        333

Referral Visits
Percent of new subs referring          10.0%      10.0%     10.0%      10.0%      10.0%      10.0%      10.0%      10.0%       10.0%      10.0%      10.0%      10.0%
Referrals per subscriber                  60         60        60         60         60         60         60         60          60         60         60         60
 Referral visitors                       656        656       656      1,836      1,836      1,836      2,703      2,703       5,406     14,563     22,001     22,001
Visit to Trialer conversion %          20.0%      20.0%     20.0%     20.0%      20.0%      20.0%      20.0%      20.0%       20.0%      20.0%      20.0%      20.0%
  Trialers from Referrals                131        131       131       367        367        367        540        540        1,081      2,912      4,400      4,400

Organic / Viral SUMMARY
New Trialers from Organic / Viral        146        146       146        486        486        486        798        798       1,598      4,676      7,066      7,066
Accumulated Organic Trialers             146        292       438        924      1,410      1,896      2,694      3,492       5,090      9,766     16,832     23,898
Organic/Viral Trialer to Sub %         12.0%      12.0%     12.0%     13.0%      13.0%      13.0%      14.0%      14.0%       14.0%      15.0%      15.0%      15.0%
New Subscribers from Organic               18         18        18        63         63         63       112        112         224        701       1,060      1,060
Subs from Org., Beginning of Period         --        18        34         50       112        170        227        329         428        635      1,311      2,318
Monthly Churn                           4.0%       4.0%      4.0%       4.0%       4.0%       4.0%       4.0%       4.0%        4.0%      4.0%       4.0%       4.0%
Subs from Org., End of Period              18         34        50       112        170        227        329        428         635      1,311      2,318      3,285
Revenue per Subscriber                  $100       $100      $100       $100       $100       $120       $120       $120        $120       $120      $120        $120
 TOTAL REVENUE - SUBS (Organic)         $876     $2,593    $4,241     $8,107    $14,100    $23,825    $33,366    $45,438     $63,747   $116,704   $217,714   $336,193




                                                                                                                                                                 24
Model – Summary
                                     Mar '12    Apr '12   May '12    Jun '12     Jul '12        Aug '12    Sep '12     Oct '12     Nov '12         Dec '12       Jan '13     Feb '13

Total Monthly Revenue                 $6,340    $18,766   $30,696    $54,267     $89,014        $146,846   $196,856   $256,448     $347,407        $588,707    $1,036,476   $1,562,227
Total Monthly Marketing Cost          20,000     20,000    20,000     60,000      60,000          60,000    120,000    120,000      240,000         480,000      960,000      960,000
 Total Monthly Online Margin         ($13,660) ($1,234) $10,696      ($5,733)    $29,014         $86,846    $76,856   $136,448     $107,407        $108,707      $76,476     $602,227
   Online Margin %                       N/A       N/A     34.8%         N/A      32.6%           59.1%      39.0%      53.2%         30.9%           18.5%         7.4%        38.5%

Incremental GMA Cost                       --        --        --          --              --         --         --          --              --     $14,250      $70,000     $123,750
 Gross Margin, Online                ($13,660) ($1,234) $10,696      ($5,733)    $29,014         $86,846    $76,856   $136,448     $107,407         $94,457        $6,476    $478,477
   Online Margin %                       N/A       N/A     34.8%         N/A      32.6%           59.1%      39.0%      53.2%         30.9%           16.0%         0.6%        30.6%

Accumulated Revenue                   $6,340    $25,106   $55,802   $110,069    $199,083        $345,929   $542,785   $799,234    $1,146,641      $1,735,347   $2,771,824   $4,334,051
Accumulated Marketing Cost            20,000     40,000    60,000    120,000     180,000         240,000    360,000    480,000      720,000        1,200,000    2,160,000    3,120,000
 Accumulated Margin                  ($13,660) ($14,894) ($4,198)    ($9,931)    $19,083        $105,929   $182,785   $319,234     $426,641        $535,347     $611,824    $1,214,051
   Accumulated Margin %                  N/A       N/A       N/A         N/A        9.6%          30.6%      33.7%      39.9%         37.2%           30.8%        22.1%        28.0%

Accumulated GMA Cost                       --        --        --          --              --         --         --          --              --     $14,250      $84,250     $208,000
 Accumulated Gross Margin, Online ($13,660) ($14,894) ($4,198)       ($9,931)    $19,083        $105,929   $182,785   $319,234     $426,641        $521,097     $527,574    $1,006,051
   Accumulated Gross Margin %            N/A       N/A       N/A         N/A        9.6%          30.6%      33.7%      39.9%         37.2%           30.0%        19.0%        23.2%

Overall Monthly Cost / Trial (CPL)       $13       $13       $13         $15         $15            $15        $23         $23          $23             $18           $24         $24
Overall Monthly Cost / Acq. (CPA)       $158      $158      $158        $163        $163           $163       $213        $213         $213            $153         $203         $203

Total Monthly Trialers from Online     1,512      1,512     1,512      3,886       3,886           3,886      5,303      5,303       10,608          26,741        40,401      40,401
Total Monthly Subs from Online           127       127       127         369         369            369        562         562         1,125           3,129        4,727        4,727

Accumulated Trialers from Online       1,512      3,024     4,536      8,422      12,308          16,194     21,497     26,800       37,408          64,149      104,550      144,951
Accumulated Subs from Online             127       254       380         750       1,119           1,488      2,050      2,612         3,737           6,866       11,592      16,319

TOTAL REVENUE FROM ONLINE             $6,340    $18,766   $30,696    $54,267     $89,014        $146,846   $196,856   $256,448     $347,407        $588,707    $1,036,476   $1,562,227
TOTAL SUBSCRIBERS FROM ONLINE            127        249       365        720       1,060           1,387      1,894      2,380        3,410           6,402        10,873       15,164




                                                                                                                                                                                  25
Growth Scenarios – Accumulated Rev (Varying RPU)

  $8,000,000


  $7,000,000


  $6,000,000


  $5,000,000                                                                              Breakeven
                                                                                         $25 px point

  $4,000,000                                                                    Breakeven
                                                                               $50 px point
                                                                 Breakeven
  $3,000,000
                                                                $100 px point

                                          Breakeven
  $2,000,000                             $300 px point


  $1,000,000


          --
                  Mar 2012 Apr 2012 May 2012 Jun 2012 Jul 2012 Aug 2012 Sep 2012 Oct 2012 Nov 2012 Dec 2012 Jan 2013 Feb 2013

               $25 Initial Price Point               $50 Initial Price Point                  $100 Initial Price Point   $300 Initial Price Point




                                                                                                                                                    26
Growth Scenarios – Accumulated Subs (Varying RPU)

   45,000


   40,000


   35,000


   30,000
                                                                                       Breakeven
                                                                                      $25 px point
   25,000
                                                                             Breakeven
                                                                            $50 px point
   20,000
                                                             Breakeven
                                                            $100 px point
   15,000
                                       Breakeven
                                      $300 px point
   10,000


    5,000


       --
               Mar 2012 Apr 2012 May 2012 Jun 2012 Jul 2012 Aug 2012 Sep 2012 Oct 2012 Nov 2012 Dec 2012 Jan 2013 Feb 2013

            $25 Initial Price Point               $50 Initial Price Point                  $100 Initial Price Point   $300 Initial Price Point




                                                                                                                                                 27
Growth Scenarios – Monthly Revenue (Varying Spend)

  $3,500,000


  $3,000,000


  $2,500,000


  $2,000,000


  $1,500,000


  $1,000,000                      Breakeven
                                 All Scenarios

   $500,000


          --
               Mar 2012 Apr 2012 May 2012 Jun 2012 Jul 2012 Aug 2012 Sep 2012 Oct 2012 Nov 2012 Dec 2012 Jan 2013 Feb 2013
                      $2,500/Month Initial Spend      $5,000/Month Initial Spend      $10,000/Month Initial Spend
                      $20,000/Month Initial Spend     $40,000/Month Initial Spend




                                                                                                                             28
Improve User Experience
Inbound Traffic                                                    Logged out Experience                                           Logged in Experience
   & Intent



Sales Referral
                                    LO Home Page                               Products [what we           How it works
[get product info]                                                                    do]

                                               LO Home Page                          Company Ticker

                                               Ver 1 - brochure                                            Who we are
  SEM/SEO                                                                           Industry Newswire

get ticker / topic                             LO Home Page                                                        Team
       info]                                                                         Custom Solutions
                                               Ver 2 – minimal &
                                                                                                                   Board
                                 Versions to         signup
                                    test
                                               LO Home Page                    Industries [who we
Paid Display                                                                         serve]
                                               Ver 3 –combo &
                                                                                                             Careers
[get product info]
                                                  newsfeed                            Financial Services

                                                                    Click on
                                 LO News Detail &                  news item
                                                                                       Public Relations    Contact Us
                                     Sign-up
Viral Referral                                                                         Corporate Dev
                                                                                                           Accessible in footer
  [sign up / get                                                                                              off all pages
                                    LO Company &
  product info]                                                                             Legal
                                       Sign-up
                      Search                                                                                                           First Time Trialer
                                    LO Industry &                                                                                            Wizard
     Email                                                                                                  Post sign-up trailer
                                       Sign-up                                                                 onboarding
  [evaluate/use
    products]

                     Signup or      LO Sign-up or
                        login           Login                                                                                            LI Home Page
                                                                                                                   Login                  [news feed]
Direct Login

  [use products]                    Search Results
Home page - a




                31
Home page - b




                32
Home page - c




                33
News Detail Page




                   34
Company
Page




          35
Industry
Page




           36
Search
Results
Page




          37
Recent
News
Page




         38
Sign In Page




               39
Sign Up Page




               40
Product Page




               41
Product Page




               42
Product Page




               43
Solutions Page




                 44
Solutions Page




                 45
Solutions
Page




            46
About Us
Page




           47
Team Detail
Page




              48
Trial signup - a




                   49
Trial signup - b




                   50
Trial signup - c




                   51
Trial signup - d




                   52
Trial signup - e




                   53
Trial signup - flow




                      54

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2012 online roadmap final v5

  • 1. 2012 Growing Online – David Wolfe
  • 2. Online – objectives • Develop a new customer acquisition channel – High volume – Cost effective – Target demand against existing content • Sell a standardized set of products online – Learn how to resale products – Sell online – Create content to support emerging search demand • Improve key elements of the user experience 2
  • 3. Online – objectives & key hypothesis • Develop a new customer acquisition channel – Acquisition hypothesis  We can acquire visitors to our properties cost effectively – Market size hypothesis  Meaningful online demand for our product exists – Activation hypothesis  We can persuade visitors to trial our content products online • Sell a standardized set of products online ‒ Revenue hypothesis  We can persuade trialers to purchase products online ‒ Retention hypothesis  We can retain our online subscribers over time ‒ Resale hypothesis  We can sell our products to more than one individual • Improve key elements of the customer experience ‒ Referral hypothesis  We can persuade subscribers to refer others to use our products ‒ Delight hypothesis  We can provide an engaging experience to our users 3
  • 4. Online – validating hypothesis with metrics • Develop a new customer acquisition channel ‒ Acquisition hypothesis  # visits, eCPC ‒ Market size hypothesis # of sources, size of source ‒ Activation hypothesis  visit/trial conversion rate, avg(trial length), # trialers • Sell a standardized set of products online ‒ Revenue hypothesis  trial/subscriber conversion rate, avg(revenue per subscriber), # subscribers ‒ Retention hypothesis  avg(subscriber churn) ‒ Resale hypothesis  avg(# of subscribers per product) • Improve key elements of the customer experience ‒ Referral hypothesis  avg(# referrals per subscriber) ‒ Delight hypothesis  net promoter score 4
  • 5. Online – roadmap Q1 Q2 Q3 Q4 Create Online Optimize & Grow New Distribution- New Distribution- Focus Apps & Mobile Partner Platform • Redesign and enhance • Continue re-designing core • Distribute content & • Create affiliate primary user experience features and functionality. services via marketplace Objectives • Test SEM, FB, & LinkedIn • Implement test • Open Social & FB •Syndicate content as key traffic sources frameworks. applications Recommendation Engine • Affiliate/partner portal • Identify & curate key • Mobile experiences content products • Impact all core metrics Home Page  XHTML/WAP application  Partner/affiliate portal  A/B testing framework  Event Stream  IPhone Application  Co-branded experience  Price sensitivity testing Approach  Trial experience & wizard framework  Open Social app(s)  Partner sign-up  Company & Industry profiles Recommendation engine  FB app(s)  Delivery vehicle management Referral tools  API  Purchase  Personalized email campaigns (win back, upsell, new product, etc.) 5
  • 6. Online – roadmap/hypothesis mapping New customer acquisition channel Sell standardized products Improve user exp Acquisition Activation Revenue Retention Resale Referral Delight Logged out Landing pages & website initial trial exp Q1 – ** acquisition Trial wizard Product Product Product Core stream create marketing discovery discovery discovery experience online ** acquisition Purchase, Delivery Core stream marketing + SEO Delivery Pref preferences experience frame ** acquisition A/B testing frame- Price point A/B Referral tools marketing work testing + APIs Q2 - ** acquisition ** trial conversion Upsell Recommend Recommend optimize marketing testing messaging engine engine system ** acquisition ** trial conversion ** price point Multi-user marketing testing testing account mgt, + Intelligent CRM Win-back ** acquisition ** trial conversion Mobile web Mobile web marketing+ Open testing Q3- apps Social apps & mobile ** acquisition ** trial conversion Mobile – Mobile – Mobile – marketing testing native app native app native app 6
  • 8. Current client acquisition & content investment model 8
  • 9. Online client acquisition & content investment model 9
  • 10. Online/Direct Sales – Customer Lifecycle Comparison Direct Sales Online Brand and Lead Driven Online Demand Driven High quality lead-driven clients from networks, channel SEM/SEO exposes our current coverage universe to interested partnerships, etc. Focus on developing value proposition searchers, funneling them to keyword-driven landing pages. and branding Additionally, Google trends & insights exposes emerging demand for new content products (new coverage) Acquire Customer for Free Trial Acquire Customer for Free Trial BD can create highly-directed, customized trial coverage for Begin customer on time-limited free trial, no new clients. Discovery is done through conversation and companies/topics available – 0% cost trial model solution-building Prove Value Prove Value Persistent monitoring of trial by BD, coverage quality Recommend additional products and automated monitored by Operations. Coverage changes frequently. monitoring of usage patterns. Present customer with Begin discussing contract terms leading towards … milestones leading towards… Invoice Get Payment Information Contract negotiation concludes and often quarterly to Customer enters credit card payment information into site – year-long contracts are executed self-service of their news stream Relationship Maintain and Improve Value Continue focusing on high-touch relationship through Use brightwire.com to continue upselling user, provide Client Development team, upsell and improve value through content and recommendations directionality of coverage 10
  • 11. Online growth phases 1. Amortize existing content – Q1/Q2 – Form “newswire” (21) products based upon existing high flow content opportunities. Sell them online. Drive new traffic by purchasing associated key words – Sell existing company tickers (264) online. Drive new traffic by purchasing related keywords 2. Expand coverage universe – Q3/Q4 – Identify top 10 searched for industry/region combinations we currently do not cover. Modify GMA coverage. Sell them online. Drive traffic by purchasing relevant key words. – Identify top 100 searched for companies we do not currently cover. Modify GMA coverage. Sell them online. Drive traffic by purchasing relevant key words. – Identify top 10 searched for financially focused topics we do not currently cover. Modify GMA coverage. Sell them online. Drive traffic by purchasing relevant key words. 11
  • 12. Existing resalable newswire products (21) Newswire name Newsflow: Last 90 Days Newsflow: Daily Average Europe 16,999 188.9 Asia Pacific 11,665 129.6 Finance 10,688 118.8 North America 9,100 101.1 Europe Finance 5,984 66.5 Materials & Natural Resources 5,557 61.7 Consumer 5,468 60.8 Technology 4,746 52.7 Latin America 4,230 47.0 Industrials 4,135 45.9 Energy & Utilities 4,098 45.5 Media & Telecom 3,263 36.3 Asia Pacific Finance 2,579 28.7 Middle-East & Africa 2,514 27.9 Asia Pacific Consumer 2,315 25.7 Europe Industrials 2,175 24.2 North America Finance 2,165 24.1 Europe Energy & Utilities 2,105 23.4 North America Technology 1,975 21.9 Asia Pacific Technology 1,939 21.5 Europe Consumer 1,815 20.2 12
  • 13. Existing resalable company ticker products (264) Top 14 Companies (out of 264) Dena Co. Ltd. Gree, Inc. Li & Fung Limited Chaoda Modern Agriculture (Holdings) Limited Evergrande Real Estate Group Limited SINA Corporation Youku.com Inc. Tencent Holdings Limited Cree, Inc. Exxon Mobil Corporation Mindray Medical International Limited Yamada Denki Co. Ltd. K's Holdings Corporation Sanrio Co. Ltd. 13
  • 14. Harvesting demand (SEM) for existing industry newswires • Keyword Targets & CPC Determination Process – 65 total industry newswires (5 geographies, 10 industries, 50 combinations) – 21 of which are robust enough to market (throughput of 20+ news items per day) – Up to 5 “nicknames” created for each newswire (e.g. Asian from Asia Pacific) – For each name & nickname, 6 variations used to create keyword set (e.g. Asian Tech News, Asian Tech Research, Asian Tech Sector News, Asian Tech Sector Research, etc.) – Google Keyword tool used to derive average searches & approximate CPC for each keyword (CPC $1.35 - $2.52) 165,734,560 X 0.5% X 3.5% = 29,004 trials Google searches in the US Of searchers Who visit us, (estimated) based on a 415 Click-Through start a trial of Keyword set (potential 800K BrightWire visitors) service for at least one industry * approximate result from Q1 2011 SEO/SEM Test) 14
  • 15. Harvesting demand(SEM) for existing companies covered • Keyword Targets & CPC Determination Process – 264 total companies currently covered by BrightWire (1.5x average languages/company) – Up to 2 “nicknames” created for each company (e.g. BYD from BYD Company Limited) – For each name & nickname, 3 variations used to create keyword set (e.g. BYD, BYD News, BYD Research) – Google Keyword tool used to derive average searches & approximate CPC for each keyword – Brand names (e.g. Acer) and likely error-prone keywords (e.g. tam research) removed (CPC $.40 - $1.35) 12,415,213 X 0.5% X 3.5% = 2,173 trials Google searches in the US Of searchers Who visit us, (estimated) based on a 1968 Click-Through start a trial of Keyword set (potential 800K BrightWire visitors) service for at least one company * approximate result from Q1 2011 SEO/SEM Test) 15
  • 16. Harvesting demand(SEM) for expansion industry newswires • Keyword Targets & CPC Determination Process – 21 of 65 total industry newswires included in the initial roll-out – Remaining 44 newswires not included in initial roll-out provide opportunity for expansion – Expected inclusion of 10 additional newswire per expansion period – Up to 5 “nicknames” created for each newswire (e.g. Asian from Asia Pacific) – For each name & nickname, 6 variations used to create keyword set (e.g. Asian Tech News, Asian Tech Research, Asian Tech Sector News, Asian Tech Sector Research, etc.) – Google Keyword tool used to derive average searches & approximate CPC for each keyword (CPC $1.35 - $2.52) 41,817,856 X 0.5% X 3.5% = 7,318 trials Google searches in the US Of searchers Who visit us, (estimated) based on a 1,123 Click-Through start a trial of Keyword set (potential 800K BrightWire visitors) service for at least one company * approximate result from Q1 2011 SEO/SEM Test) 16
  • 17. Harvesting demand – social media • LinkedIn CPC segment data – Targeting major US geographies, London, Australia & Hong Kong and Legal, Financial, Research and Consulting industries – Produces a target audience of 658,057 – Average suggested CPC of $3.00 • Facebook CPC segment data – Targeting those users interested in financial services, investment management, ETFs, Stock Market, Market Research, Public Relations, M&A, Investment Banking, Venture Capital, and Hedge Funds – Produces a target audience of 290,200 users – Average suggested CPC of $0.94 (vs. ~$1.50 from 2011 test (used in model)) 17
  • 18. Unpaid demand acquisition approaches • SEO – Optimize information rich sign-up pages for search engine placement – Create crawlable industry, company, & topic based directories – Publish all information assets – Train GMAs • Viral/referral models – Build simple mechanisms for sharing & micro publishing  Via Facebook  Via LinkedIn  Via Twitter  Via email – Create simple signup funnels for referees – Experiment with incentives 18
  • 19. Model Inputs Mar '12 Apr '12 May '12 Jun '12 Jul '12 Aug '12 Sep '12 Oct '12 Nov '12 Dec '12 Jan '13 Feb '13 Trialer / Subscription Metrics SEM Vi s i tor to Tri a l er % 3.7% 3.7% 3.7% 3.8% 3.8% 3.8% 4.9% 4.9% 4.9% 6.0% 6.0% 6.0% Fa cebook Vi s i tor to Tri a l er % 3.5% 3.5% 3.5% 3.8% 3.8% 3.8% 4.9% 4.9% 4.9% 6.0% 6.0% 6.0% Li nkedIn Vi s i tor to Tri a l er % 3.5% 3.5% 3.5% 3.8% 3.8% 3.8% 4.9% 4.9% 4.9% 6.0% 6.0% 6.0% Di s pl a y Ad Vi s i tor to Tri a l er % 3.5% 3.5% 3.5% 3.8% 3.8% 3.8% 4.9% 4.9% 4.9% 6.0% 6.0% 6.0% Orga ni c/Vi ra l Vi s i tor to Tri a l er % 3.5% 3.5% 3.5% 3.8% 3.8% 3.8% 4.9% 4.9% 4.9% 6.0% 6.0% 6.0% Referra l Vi s i tor to Tri a l er % 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% Pa i d Tri a l er to Subs cri ber % 8.0% 8.0% 8.0% 9.0% 9.0% 9.0% 10.0% 10.0% 10.0% 11.0% 11.0% 11.0% Orga ni c/Vi ra l Tri a l er to Sub % 12.0% 12.0% 12.0% 13.0% 13.0% 13.0% 14.0% 14.0% 14.0% 15.0% 15.0% 15.0% Revenue per Subs cri ber per Month $100 $100 $100 $100 $100 $120 $120 $120 $120 $120 $120 $120 Subs cri ber Churn 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Spend Metrics SEM (Adwords ) Spend - Indus tri es $7,368 $7,368 $7,368 $17,895 $17,895 $17,895 $24,000 $24,000 $48,000 $96,000 $214,000 $214,000 SEM (Adwords ) Spend - Compa ni es $12,632 $12,632 $12,632 $27,368 $27,368 $27,368 $48,000 $48,000 $96,000 $192,000 $406,000 $406,000 Fa cebook Spend -- -- -- $8,421 $8,421 $8,421 $24,000 $24,000 $48,000 $96,000 $192,000 $192,000 Li nkedIn Spend -- -- -- $6,316 $6,316 $6,316 $18,000 $18,000 $36,000 $72,000 $100,000 $100,000 Di s pl a y CPM Spend -- -- -- -- -- -- $6,000 $6,000 $12,000 $24,000 $48,000 $48,000 Cost Metrics SEM (Adwords ) CPC - Indus tri es $1.35 $1.35 $1.35 $1.35 $1.35 $1.35 $1.95 $1.95 $1.95 $1.95 $2.52 $2.52 SEM (Adwords ) CPC - Compa ni es $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.85 $0.85 $0.85 $0.85 $1.35 $1.35 Fa cebook CPC $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 Li nkedIn CPC $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 Di s pl a y eCPM $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 Specific Metrics Di s pl a y CPM Cl i ck Through 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% Vi s i ts from Orga ni c Sea rch (% pa i d) 1.0% 1.0% 1.0% 3.0% 3.0% 3.0% 5.0% 5.0% 5.0% 7.0% 7.0% 7.0% Vi s i ts from Di rect Tra ffi c (% pa i d) 0.3% 0.3% 0.3% 0.5% 0.5% 0.5% 0.8% 0.8% 0.8% 1.0% 1.0% 1.0% % Subs (pa i d) l i kel y to refer (new) 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% Sends per Sha rer 60 60 60 60 60 60 60 60 60 60 60 60 19
  • 20. Model – GMA Cost Mar '12 Apr '12 May '12 Jun '12 Jul '12 Aug '12 Sep '12 Oct '12 Nov '12 Dec '12 Jan '13 Feb '13 GMA Salary Per Year $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 GMA Salary Per Month 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 GMA Cost - Newswires GMAs per newswire 4 4 4 4 4 4 4 4 4 4 4 4 GMA Cost Per Newswire $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 Subs Per Newswire 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Total Subscribers 127 249 365 720 1,060 1,387 1,894 2,380 3,410 6,402 10,873 15,164 Prescribed Newswires 1 1 1 1 2 2 2 3 4 7 11 16 Incremental Newswires - over 21* -- -- -- -- -- -- -- -- -- -- -- -- Incremental GMA Cost -- -- -- -- -- -- -- -- -- -- -- -- * Existing Derived or "Pseudo" Newswires GMA Cost - Companies Online Companies Per GMA 20 20 20 20 20 20 20 20 20 20 20 20 GMAs Per Company 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 GMA Cost Per Company $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 Subs Per Company 20 20 20 20 20 20 20 20 20 20 20 20 Total Subscribers 127 249 365 720 1,060 1,387 1,894 2,380 3,410 6,402 10,873 15,164 Prescribed Companies 7 13 19 36 54 70 95 120 171 321 544 759 Incremental Companies - over 264* -- -- -- -- -- -- -- -- -- 57 280 495 Incremental GMA Cost -- -- -- -- -- -- -- -- -- $14,250 $70,000 $123,750 Total Incremental GMA Cost -- -- -- -- -- -- -- -- -- $14,250 $70,000 $123,750 * Existing Company Coverage 20
  • 21. Model – Paid Marketing (Display & Search) Mar '12 Apr '12 May '12 Jun '12 Jul '12 Aug '12 Sep '12 Oct '12 Nov '12 Dec '12 Jan '13 Feb '13 Display Advertising CPM Spend (display, adnetworks) -- -- -- -- -- -- $6,000 $6,000 $12,000 $24,000 $48,000 $48,000 eCPM $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 $7.00 Click through rate % 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% Visits From CPM Spend -- -- -- -- -- -- 857 857 1,714 3,429 6,857 6,857 Visit to Trialer conversion % 3.5% 3.5% 3.5% 3.8% 3.8% 3.8% 4.9% 4.9% 4.9% 6.0% 6.0% 6.0% Trialers from CPM Spend -- -- -- -- -- -- 42 42 84 205 411 411 SEM (Adwords) Advertising SEM (Adwords) Spend - Industries $7,368 $7,368 $7,368 $17,895 $17,895 $17,895 $24,000 $24,000 $48,000 $96,000 $214,000 $214,000 SEM (Adwords) CPC - Industries $1.35 $1.35 $1.35 $1.35 $1.35 $1.35 $1.95 $1.95 $1.95 $1.95 $2.52 $2.52 SEM Clicks / Visits - Industries 5,458 5,458 5,458 13,255 13,255 13,255 12,308 12,308 24,615 49,231 84,921 84,921 Visit to Trialer conversion % 3.7% 3.7% 3.7% 3.8% 3.8% 3.8% 4.9% 4.9% 4.9% 6.0% 6.0% 6.0% Trialers from SEM - Industries 201 201 201 503 503 503 603 603 1,206 2,953 5,095 5,095 SEM (Adwords) Spend - Companies $12,632 $12,632 $12,632 $27,368 $27,368 $27,368 $48,000 $48,000 $96,000 $192,000 $406,000 $406,000 SEM (Adwords) CPC - Companies $0.40 $0.40 $0.40 $0.40 $0.40 $0.40 $0.85 $0.85 $0.85 $0.85 $1.35 $1.35 SEM Clicks / Visits - Companies 31,579 31,579 31,579 68,421 68,421 68,421 56,471 56,471 112,941 225,882 300,741 300,741 Visit to Trialer conversion % 3.7% 3.7% 3.7% 3.8% 3.8% 3.8% 4.9% 4.9% 4.9% 6.0% 6.0% 6.0% Trialers from SEM - Companies 1,165 1,165 1,165 2,600 2,600 2,600 2,767 2,767 5,534 13,552 18,044 18,044 Trialers from SEM - Total 1,366 1,366 1,366 3,103 3,103 3,103 3,370 3,370 6,740 16,505 23,139 23,139 21
  • 22. Model – Paid Marketing (Social Networking) Mar '12 Apr '12 May '12 Jun '12 Jul '12 Aug '12 Sep '12 Oct '12 Nov '12 Dec '12 Jan '13 Feb '13 Facebook Advertising Facebook Ad Spend -- -- -- $8,421 $8,421 $8,421 $24,000 $24,000 $48,000 $96,000 $192,000 $192,000 Facebook CPC $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 $1.50 Clicks / Visits From Facebook -- -- -- 5,614 5,614 5,614 16,000 16,000 32,000 64,000 128,000 128,000 Visit to Trialer conversion % 3.5% 3.5% 3.5% 3.8% 3.8% 3.8% 4.9% 4.9% 4.9% 6.0% 6.0% 6.0% Trialers from Facebook -- -- -- 213 213 213 784 784 1,568 3,840 7,680 7,680 LinkedIn Advertising LinkedIn Ad Spend -- -- -- $6,316 $6,316 $6,316 $18,000 $18,000 $36,000 $72,000 $100,000 $100,000 LinkedIn CPC $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 $2.85 Clicks / Visits From LinkedIn -- -- -- 2,216 2,216 2,216 6,316 6,316 12,632 25,263 35,088 35,088 Visit to Trialer conversion % 3.5% 3.5% 3.5% 3.8% 3.8% 3.8% 4.9% 4.9% 4.9% 6.0% 6.0% 6.0% Trialers from LinkedIn -- -- -- 84 84 84 309 309 618 1,515 2,105 2,105 22
  • 23. Model – Paid Marketing Summary Mar '12 Apr '12 May '12 Jun '12 Jul '12 Aug '12 Sep '12 Oct '12 Nov '12 Dec '12 Jan '13 Feb '13 New Trialers from Paid Marketing 1,366 1,366 1,366 3,400 3,400 3,400 4,505 4,505 9,010 22,065 33,335 33,335 Total Monthly Online Mktg Cost $20,000 $20,000 $20,000 $60,000 $60,000 $60,000 $120,000 $120,000 $240,000 $480,000 $960,000 $960,000 Effective Online Cost per Trial (CPL) $14.64 $14.64 $14.64 $17.65 $17.65 $17.65 $26.64 $26.64 $26.64 $21.75 $28.80 $28.80 Accumulated Paid Mktg Trialers 1,366 2,732 4,098 7,498 10,898 14,298 18,803 23,308 32,318 54,383 87,718 121,053 Paid Trialer to Subscriber % 8.0% 8.0% 8.0% 9.0% 9.0% 9.0% 10.0% 10.0% 10.0% 11.0% 11.0% 11.0% New Subscribers from Paid Mktg 109 109 109 306 306 306 451 451 901 2,427 3,667 3,667 Effective Online CPA $183.02 $183.02 $183.02 $196.08 $196.08 $196.08 $266.37 $266.37 $266.37 $197.76 $261.81 $261.81 Subs from Paid, Beg. of Period -- 109 214 315 608 890 1,160 1,564 1,952 2,775 5,091 8,555 Monthly Churn 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Subs from Paid, End of Period 109 214 315 608 890 1,160 1,564 1,952 2,775 5,091 8,555 11,879 Revenue per Subscriber $100 $100 $100 $100 $100 $120 $120 $120 $120 $120 $120 $120 Payback Period (Months) 1.83 1.83 1.83 1.96 1.96 1.63 2.22 2.22 2.22 1.65 2.18 2.18 TOTAL REVENUE - SUBS (Paid) $5,464 $16,173 $26,455 $46,160 $74,914 $123,021 $163,490 $211,010 $283,660 $472,003 $818,762 $1,226,034 23
  • 24. Model – Organic / Viral Marketing Mar '12 Apr '12 May '12 Jun '12 Jul '12 Aug '12 Sep '12 Oct '12 Nov '12 Dec '12 Jan '13 Feb '13 Organic Search Visits Organic Search Visitors 370 370 370 2,685 2,685 2,685 4,598 4,598 9,195 25,746 38,892 38,892 Visit to Trialer conversion % 3.5% 3.5% 3.5% 3.8% 3.8% 3.8% 4.9% 4.9% 4.9% 6.0% 6.0% 6.0% Trialers from Organic Search 12 12 12 102 102 102 225 225 450 1,544 2,333 2,333 Direct Traffic Visits Direct Traffic Visitors 93 93 93 448 448 448 690 690 1,379 3,678 5,556 5,556 Visit to Trialer conversion % 3.5% 3.5% 3.5% 3.8% 3.8% 3.8% 4.9% 4.9% 4.9% 6.0% 6.0% 6.0% Trialers from Direct Traffic 3 3 3 17 17 17 33 33 67 220 333 333 Referral Visits Percent of new subs referring 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% Referrals per subscriber 60 60 60 60 60 60 60 60 60 60 60 60 Referral visitors 656 656 656 1,836 1,836 1,836 2,703 2,703 5,406 14,563 22,001 22,001 Visit to Trialer conversion % 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% Trialers from Referrals 131 131 131 367 367 367 540 540 1,081 2,912 4,400 4,400 Organic / Viral SUMMARY New Trialers from Organic / Viral 146 146 146 486 486 486 798 798 1,598 4,676 7,066 7,066 Accumulated Organic Trialers 146 292 438 924 1,410 1,896 2,694 3,492 5,090 9,766 16,832 23,898 Organic/Viral Trialer to Sub % 12.0% 12.0% 12.0% 13.0% 13.0% 13.0% 14.0% 14.0% 14.0% 15.0% 15.0% 15.0% New Subscribers from Organic 18 18 18 63 63 63 112 112 224 701 1,060 1,060 Subs from Org., Beginning of Period -- 18 34 50 112 170 227 329 428 635 1,311 2,318 Monthly Churn 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% Subs from Org., End of Period 18 34 50 112 170 227 329 428 635 1,311 2,318 3,285 Revenue per Subscriber $100 $100 $100 $100 $100 $120 $120 $120 $120 $120 $120 $120 TOTAL REVENUE - SUBS (Organic) $876 $2,593 $4,241 $8,107 $14,100 $23,825 $33,366 $45,438 $63,747 $116,704 $217,714 $336,193 24
  • 25. Model – Summary Mar '12 Apr '12 May '12 Jun '12 Jul '12 Aug '12 Sep '12 Oct '12 Nov '12 Dec '12 Jan '13 Feb '13 Total Monthly Revenue $6,340 $18,766 $30,696 $54,267 $89,014 $146,846 $196,856 $256,448 $347,407 $588,707 $1,036,476 $1,562,227 Total Monthly Marketing Cost 20,000 20,000 20,000 60,000 60,000 60,000 120,000 120,000 240,000 480,000 960,000 960,000 Total Monthly Online Margin ($13,660) ($1,234) $10,696 ($5,733) $29,014 $86,846 $76,856 $136,448 $107,407 $108,707 $76,476 $602,227 Online Margin % N/A N/A 34.8% N/A 32.6% 59.1% 39.0% 53.2% 30.9% 18.5% 7.4% 38.5% Incremental GMA Cost -- -- -- -- -- -- -- -- -- $14,250 $70,000 $123,750 Gross Margin, Online ($13,660) ($1,234) $10,696 ($5,733) $29,014 $86,846 $76,856 $136,448 $107,407 $94,457 $6,476 $478,477 Online Margin % N/A N/A 34.8% N/A 32.6% 59.1% 39.0% 53.2% 30.9% 16.0% 0.6% 30.6% Accumulated Revenue $6,340 $25,106 $55,802 $110,069 $199,083 $345,929 $542,785 $799,234 $1,146,641 $1,735,347 $2,771,824 $4,334,051 Accumulated Marketing Cost 20,000 40,000 60,000 120,000 180,000 240,000 360,000 480,000 720,000 1,200,000 2,160,000 3,120,000 Accumulated Margin ($13,660) ($14,894) ($4,198) ($9,931) $19,083 $105,929 $182,785 $319,234 $426,641 $535,347 $611,824 $1,214,051 Accumulated Margin % N/A N/A N/A N/A 9.6% 30.6% 33.7% 39.9% 37.2% 30.8% 22.1% 28.0% Accumulated GMA Cost -- -- -- -- -- -- -- -- -- $14,250 $84,250 $208,000 Accumulated Gross Margin, Online ($13,660) ($14,894) ($4,198) ($9,931) $19,083 $105,929 $182,785 $319,234 $426,641 $521,097 $527,574 $1,006,051 Accumulated Gross Margin % N/A N/A N/A N/A 9.6% 30.6% 33.7% 39.9% 37.2% 30.0% 19.0% 23.2% Overall Monthly Cost / Trial (CPL) $13 $13 $13 $15 $15 $15 $23 $23 $23 $18 $24 $24 Overall Monthly Cost / Acq. (CPA) $158 $158 $158 $163 $163 $163 $213 $213 $213 $153 $203 $203 Total Monthly Trialers from Online 1,512 1,512 1,512 3,886 3,886 3,886 5,303 5,303 10,608 26,741 40,401 40,401 Total Monthly Subs from Online 127 127 127 369 369 369 562 562 1,125 3,129 4,727 4,727 Accumulated Trialers from Online 1,512 3,024 4,536 8,422 12,308 16,194 21,497 26,800 37,408 64,149 104,550 144,951 Accumulated Subs from Online 127 254 380 750 1,119 1,488 2,050 2,612 3,737 6,866 11,592 16,319 TOTAL REVENUE FROM ONLINE $6,340 $18,766 $30,696 $54,267 $89,014 $146,846 $196,856 $256,448 $347,407 $588,707 $1,036,476 $1,562,227 TOTAL SUBSCRIBERS FROM ONLINE 127 249 365 720 1,060 1,387 1,894 2,380 3,410 6,402 10,873 15,164 25
  • 26. Growth Scenarios – Accumulated Rev (Varying RPU) $8,000,000 $7,000,000 $6,000,000 $5,000,000 Breakeven $25 px point $4,000,000 Breakeven $50 px point Breakeven $3,000,000 $100 px point Breakeven $2,000,000 $300 px point $1,000,000 -- Mar 2012 Apr 2012 May 2012 Jun 2012 Jul 2012 Aug 2012 Sep 2012 Oct 2012 Nov 2012 Dec 2012 Jan 2013 Feb 2013 $25 Initial Price Point $50 Initial Price Point $100 Initial Price Point $300 Initial Price Point 26
  • 27. Growth Scenarios – Accumulated Subs (Varying RPU) 45,000 40,000 35,000 30,000 Breakeven $25 px point 25,000 Breakeven $50 px point 20,000 Breakeven $100 px point 15,000 Breakeven $300 px point 10,000 5,000 -- Mar 2012 Apr 2012 May 2012 Jun 2012 Jul 2012 Aug 2012 Sep 2012 Oct 2012 Nov 2012 Dec 2012 Jan 2013 Feb 2013 $25 Initial Price Point $50 Initial Price Point $100 Initial Price Point $300 Initial Price Point 27
  • 28. Growth Scenarios – Monthly Revenue (Varying Spend) $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 Breakeven All Scenarios $500,000 -- Mar 2012 Apr 2012 May 2012 Jun 2012 Jul 2012 Aug 2012 Sep 2012 Oct 2012 Nov 2012 Dec 2012 Jan 2013 Feb 2013 $2,500/Month Initial Spend $5,000/Month Initial Spend $10,000/Month Initial Spend $20,000/Month Initial Spend $40,000/Month Initial Spend 28
  • 30. Inbound Traffic Logged out Experience Logged in Experience & Intent Sales Referral LO Home Page Products [what we How it works [get product info] do] LO Home Page Company Ticker Ver 1 - brochure Who we are SEM/SEO Industry Newswire get ticker / topic LO Home Page Team info] Custom Solutions Ver 2 – minimal & Board Versions to signup test LO Home Page Industries [who we Paid Display serve] Ver 3 –combo & Careers [get product info] newsfeed Financial Services Click on LO News Detail & news item Public Relations Contact Us Sign-up Viral Referral Corporate Dev Accessible in footer [sign up / get off all pages LO Company & product info] Legal Sign-up Search First Time Trialer LO Industry & Wizard Email Post sign-up trailer Sign-up onboarding [evaluate/use products] Signup or LO Sign-up or login Login LI Home Page Login [news feed] Direct Login [use products] Search Results
  • 31. Home page - a 31
  • 32. Home page - b 32
  • 33. Home page - c 33
  • 54. Trial signup - flow 54