spendLO print deck 5.28.13
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SpendLO is an online marketplace where consumers name their price on local services and are matched with certified professionals who compete to earn their business. Think Priceline meets Angie's List.
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spendLO print deck 5.28.13
- 2. Ari Steinberg M.S. Stanford University, previous startup experience: , creator of the News Feed Alex Enchin Previous startup experience: Co-Founder of , sold to Torstar Corporation (2010) Our Team Corey Leff Founder & CEO Founder of early cloud startup Document Nation (2004) Leadership Advisory Board Kristin Delaney, Managing Partner Former VP, MetLife Investors David LeVine Previous startup experience: Founder & CEO of Advent Business Systems, sold to (2005) Elise Hahn, Marketing Director Former Project Manager to numerous Internet Retailer’s Top 500
- 3. The Challenge Face it, it’s a hassle to research, review and hire service providers. There are a million companies out there. Reviews are everywhere, but unfortunately many are contradictory. Calling around is a waste of time as you’ll repeatedly answer the same questions. The quotes never come back within budget, and then when you think you’re done, the follow-up calls and emails from over-aggressive sales people border on harassment!
- 4. The Solution SpendLO, an online marketplace where consumers “NAME THEIR PRICE” on local services, as certified service professionals compete to fulfill their needs. (…think Priceline® meets Angie’s List)
- 5. 40% of the GDP is spent on goods & services There are 132 Million U.S. households The Market is MASSIVE
- 6. 40% of GDP spent on services 100 Million U.S. households Target Markets Number of households where: • Median household income exceeds $60k; and • Owner occupancy rates exceed 70%; and • Households per sq. mile exceed 2k
- 7. How it Works Users fill out a short form describing their service needs and the maximum amount they are willing to spend. A network of certified local professionals are immediately notified, each having the opportunity to submit their most competitive bid to complete the work.
- 8. Greg S. Greg S. Eric W. Tammy T. Serge P. Analyze Bids and Review Service Professionals
- 9. SpendLO’s 10% transaction fee is collected upon selection of a service provider, with the balance payable directly to the Pro at the time of service. Select a Service Professional, and Get Things Done!
- 10. Large incumbents: NONE Substitute Solutions: Angie’s List: Subscription Model Home Advisor & Red Beacon: Lead Sales/Commission Model 10 The Competition spendLO Angie’s List Home Advisor Red Beacon Live, local call center open around the clock Yes No Yes No Network of prescreened service professionals Yes Yes Yes Yes Consumers “name their price” Yes No No No Provides additional services beyond just those for the home Yes Yes No No Cost FREE $$ to join $$ to buy leads FREE SpendLO is the ONLY solution that allows users to “name their price”
- 11. Stats to Date • 90% of registered users have posted a project. • The average project cost (i.e. accepted bid amount) is $498.50. Competitor Benchmarks • 50% of the projects posted result in service professional selection. • 50% of the users who post a project post a 2nd project within 30 days.
- 12. Distribution Model: Partnership with E.W. Scripps • Gain free advertising exposure through conglomerate network, including TV, web, and mobile. • Compensate E.W. Scripps via revenue-share arrangement. • Rapidly grow user base, starting in South Florida. E.W. Scripps maintains multi-market saturation in line with growth epicenters.
- 13. • Self-funded to date. • $500,000 to be raised in round. Financing Use of Funds • Purchase digital media exposure complimentary/synergistic with media conglomerate efforts to maximize top of mind awareness. • Expand development, including scheduling platforms, e- Commerce integration with predictive buying technology, and the implementation of dynamic pricing for appointment based services. • Support required personnel growth.
- 14. • Proven market sector with Angie’s List holding valuation in excess of $1 Billion. • Domestically produced goods and services drive about 40% of economic activity in the United States. • Distribution model that enables rapid nationwide growth while minimizing marketing expenditure. • Experienced leadership team with complimentary skill- sets. • You refuse to miss out on the next big tech start-up! You Have a Million Opportunities. Why spendLO?
Editor's Notes
- Team:Corey Leff, B.A., University of ArizonaLeff entered the world of web-based software development in 2005 with the launch of document management company Document Nation, LLC. As Managing Partner responsible for business development, Document Nation, LLC was named a Top 100 South Florida small business in both 2009 and 2010. In 2012, Document Nation was named the 24th best small business in the State of Florida and 230th best small business in the entire Southern region. The concept for spendLO was born out of Founder Corey Leff’s frustration soliciting mass transport vendors during an office facilities upgrade during Spring, 2011. Each time-consuming inquiry required the same responses, yielded vastly different (all out of budget) quotes, and resulted in endless follow-up bordering on harassment. Leff identified the need to streamline these efforts and developed the concept for a consumer driven pricing platform. Brad Leipart, Chief Technical Officer, B.S., Pennsylvania State UniversityBrad Leipart is an IT Executive turned entrepreneur. Prior to joining spendLO, Leipart launched his own software development company, Mr. Leipart served for two (2) years as IT Director at Lyford Cay International School in the Bahamas providing direction in infrastructure, student information systems and curriculum. Prior to joining Lyford Cay, Brad served as CIO for two (2) years at Xlibris Corporation, a self publishing company owned by Random House where he managed the Philippine based infrastructure and application development teams. Kristin Delaney, Managing Partner, B.A., Trinity CollegeDelaney’s experience with software development and programming began in 1984 with an (outdated) Atari 400, Atari's foray into home computing through an extended BASIC cartridge. Active in the late 90s internet boom, Delaney honed her web design and HTML programming skills, later opening up her own boutique design firm. A venture into the digital marketing agency world, with a focus on e-commerce, enabled Kristin to develop a specialty in conversion rate optimization and display advertising. Delaney is pursuing her MS Degree in Information Design & Technology at the State University of New York Institute of Technology.Advisory Board:Ari Steinberg, M.S., Stanford UniversityMr. Steinberg graduated from Stanford University with a Masters Degree in Computer Science. Steinberg immediately joined Facebook as a Software Engineer following graduation where he worked until September 2012.
- Substitute solutions: Angie’s List™, review site – Users pay a monthly fee to access consumer reviews on local service providers. Users are required to pay a monthly fee for each city in which they would like to access vendor reviews. Home Advisor® & Red Beacon, lead sales – Users state their needs and are promised “5 quotes in 5 minutes.” Each of the lead purchasers follow-up directly with the consumer asking duplicative questions, providing quotes outside the consumer’s budget, and over-communicate following the quote. Inevitably, at least Four (4) out of Five (5) service providers lose money on each transaction.
- Use of Funds:Technology Advancement GamificationSocial network integrationIntegrated scheduling platform White label platformStaff Marketing Director User Experience Director Social Media DirectorMarketing Digital marketing Television & Radio advertisements Print advertisingOffice/Hardware Furniture Computer hardware Phone system
- Use of Funds:Technology Advancement GamificationSocial network integrationIntegrated scheduling platform White label platformStaff Marketing Director User Experience Director Social Media DirectorMarketing Digital marketing Television & Radio advertisements Print advertisingOffice/Hardware Furniture Computer hardware Phone system
- Changing business economics: Forget supply and demand. Today’s economy is driven by what a consumer is WILLING to pay for a product or service. Everyone wins!:Modified reverse auction platform that enables consumers to “name their price” on services. Local businesses build clientele through this cost-free, risk-free lead generation tool. Local economy is boosted, as Eighty Percent (80%) of every dollar spent is redirected back into community development.Proven Concept:A September 2010 Rice University study indicated that of the 150 businesses interviewed, the number One (1) customer acquisition technique businesses would be willing to pay for is a percentage of the sale generated by an online marketing program. A 2011 Opus Research-MerchantCircle small business survey of 8,456 merchants found that paying a percentage of a sale was the most popular among a range of choices provided.http://www.groupgro.com/2011/03/deals-disconnect/Right place. Right time.: E-Commerce is growing at a rate of 10% per year and is expected to exceed $279 Billion in revenue by 2015. Services represent $5 Trillion in yearly revenue and continue to maintain roughly 40% of the GDP.