The document outlines a business plan for TradeYa, a platform that allows people to trade items and services they have for things they want. It discusses the concept of unlocking value in what people own through matching wants and haves. The revenue model includes premium subscriptions, listing fees, transaction fees on high-value trades, advertising, and shipping. Key assumptions include a 0.01% search to signup rate and $0.85 average revenue per user per quarter. The achievements so far include developing the platform functionality and a successful launch. The roadmap focuses on expanding the user base and refining monetization and matching.
2. Contents
1. The Concept, Idea, and Timing
2. Revenue Model & Assumptions
3. Achievements, Team, & Roadmap
4. Pro Forma Income & Spend Plan
www.tradeya.com 2
3. The Concept
Tom has a list of Wants and Haves... So does Susan.
WANTS: WANTS:
• Help in the Garden • Antique Floor lamp
• 4x4 Vehicle • New Toaster
• Eames Chair • Violin Lessons
HAVES: HAVES:
• Violin Lessons • Eames chair
• Wine Tour Gift Cert • Choreography
• Sales Training • Turn Table
Neither are necessarily buying or selling…But BOTH have passive trading potential.
What if Tom could easily find Susan
to trade what he has for something he wants?
www.tradeya.com 3
4. The Idea
TradeYa is unlocking the value
in what people have and what they can do
through frictionless transaction matchups.
WANTS: WANTS:
• Help in the Garden • Antique Floor lamp
• 4x4 Vehicle • New Toaster
• Eames Chair • Violin Lessons
HAVES: HAVES:
• Violin Lessons • Eames chair
• Wine Tour Gift Cert • Choreography
• Sales Training • Turn Table
Scalability of this model has historically been constrained by time, geography, market size, and other factors.
Trading is a matchup of wants and haves.
Growth in social networking removes these barriers.
TradeYa is creating social marketplaces to capitalize on this shift.
www.tradeya.com 4
5. TradeYa: Social Network + Trading
Opportunity = millions of people with wants and haves
New Fedora
Fresh
Vegetables
Laptop
Internet
Marketing
Leather
New Fedora
Fresh
Vegetables
Internet
Marketing
Leather Chair
Bookbag New Fedora
Fresh
Vegetables
Internet
Marketing
Leather Chair
Chiro
New Fedora
Fresh
Vegetables
Equipment
Convertible
Books/Audio
XboxNew Fedora
Fresh
Vegetables
PlantsTickets
Internet
Marketing
Leather Chair
New Fedora
Fresh
Vegetables
Internet
Marketing
Leather
ToolsNew Fedora
Fresh
Vegetables
Speakers
Internet
Marketing
Ski Equipment
New Fedora
Fresh
Vegetables
Internet Ski
Equipment
Convertible
Lamp
New Fedora
Fresh
Vegetables
Internet
Convertible
Books/Audio
Boots
New Fedora
Fresh
Vegetables
Bose
Equipment
Convertible
Books/Audio
Personal Convertible Personal Ski Equipment Personal Equipment Personal Personal Ski Personal Equipment Personal Convertible Personal Books/Audio Personal Personal
Daypack Fridge
Trainer Books/Audio Trainer Convertible Trainer Convertible Trainer Trainer Books/Audio Trainer Convertible Trainer Books/Audio Trainer Trainer Trainer
Books/Audio Books/Audio Books/Audio
Books Skirts Tools Candle Bottle Veggies Coffee iPhone
Tickets Veggies
Vase Lessons
Pants Hammer Therapy Art Hardrive Canoe Music Mouse Chiro Onesie
Daycare
New Fedora Internet New Fedora Internet New Fedora Internet New Fedora Internet New Fedora Internet New Fedora Internet New Fedora Internet New Fedora Ski Equipment New Fedora Internet New Fedora Internet
Fresh Marketing Fresh Marketing Fresh Equipment Fresh Marketing Fresh Equipment Fresh Marketing Fresh Marketing Fresh Convertible Fresh Marketing Fresh Marketing
Vegetables Leather Chair Vegetables Leather Chair Vegetables Convertible Vegetables Equipment Vegetables Convertible Vegetables Leather Chair Vegetables Leather Chair Vegetables Books/Audio Vegetables Leather Vegetables Leather Chair
Personal quipment Personal Convertible Personal Books/Audio Personal Convertible Personal Books/Audio Personal Ski Equipment Personal Ski Equipment Personal Personal Equipment Personal Ski Equipment
Pots
Trainer Convertible Trainer Books/Audio Trainer Trainer Books/Audio Trainer Trainer Convertible Trainer Convertible Trainer Trainer Convertible Trainer
Books/Audio Books/Audio Books/Audio Books/Audio
Computer iPhone Shirts Clothes Concert Singing iPad Plumber Oranges Grill Couch
Massage Shirts Chair Couch Fruit Dvds Candle Coffee Sink Boat Massage
Goats Boots
New Fedora Internet New Fedora Internet New Fedora Internet New Fedora Internet New Fedora Internet New Fedora Internet New Fedora Internet New Fedora Ski Equipment New Fedora Internet New Fedora Internet
Fresh Marketing Fresh Marketing Fresh Equipment Fresh Marketing Fresh Equipment Fresh Marketing Fresh Marketing Fresh Convertible Fresh Marketing Fresh Marketing
Vegetables Leather Chair Vegetables Leather Chair Vegetables Convertible Vegetables Equipment Vegetables Convertible Vegetables Leather Chair Vegetables Leather Chair Vegetables Books/Audio Vegetables Leather Vegetables Leather Chair
Personal quipment Personal Convertible Personal Books/Audio Personal Convertible Personal Books/Audio Personal Ski Equipment Personal Ski Equipment Personal Personal Equipment Personal Ski Equipment
Table
Trainer Convertible Trainer Books/Audio Trainer Trainer Books/Audio Trainer Trainer Convertible Trainer Convertible Trainer Trainer Convertible Trainer
Books/Audio Books/Audio Books/Audio Books/Audio
Skirts Dresses Ottoman Books Table Computer Jacket Dog Jacket Bose Fruit
Chair Cat Hardrive Fridge Canoe Art Bottle Mouse Roofing Lamp
Onesie Goats iPad Daycare
New Fedora Internet New Fedora Internet New Fedora Internet New Fedora Internet New Fedora Internet New Fedora Internet New Fedora Internet New Fedora Ski Equipment New Fedora Internet New Fedora Internet
Fresh Marketing Fresh Marketing Fresh Equipment Fresh Marketing Fresh Equipment Fresh Marketing Fresh Marketing Fresh Convertible Fresh Marketing Fresh Marketing
Vegetables Leather Chair Vegetables Leather Chair Vegetables Convertible Vegetables Equipment Vegetables Convertible Vegetables Leather Chair Vegetables Leather Chair Vegetables Books/Audio Vegetables Leather Vegetables Leather Chair
Personal quipment Personal Convertible Personal Books/Audio Personal Convertible Personal Books/Audio Personal Ski Equipment Personal Ski Equipment Personal Personal Equipment Personal Ski Equipment
Trainer Convertible Trainer Books/Audio Trainer Trainer Books/Audio Trainer Trainer Convertible Trainer Convertible Trainer Trainer Convertible Trainer
Books/Audio Books/Audio Books/Audio Books/Audio
Concert Plums Avocados Chickens Plants Skis Laptop Music Painting
www.tradeya.com 5
6. Why Now People
want to
trade…
Yet use
buy-sell
tools…
But a trade
is not a
buy-sell!
§ Significant interest in trading and bartering
§ Google: 46,000,000 searches/ month for barter/swap keywords
§ Craigslist: 182,000 posts/month in Barter section
§ Inefficiency of existing “buy-sell” models (Craigslist, E-Bay).
§ Prepare item, price, post, negotiate, ship, fees = high friction, low reward
§ Poorly suited for social matchup, opportunistic exchanges, playful activity
§ Shifting utility of social networking
§ Technologies and social graphs are maturing
§ Social networks for (Re)-building community and social value
§ Explosion of freelance economy
§ Re-defines work and value for most people
§ Timebanks, virtual currencies: additional evidence of shifting values
§ E-commerce yielding to We-commerce
§ Trusted referrals are the holy grail of marketing
§ Trading exchange guarantees quality referrals due to owner relationship
www.tradeya.com 6
7. TradeYa.com Simple, intuitive interface.
Haves and wants, no prices.
www.tradeya.com 7
8. Revenue Model
§ Premium Subscription and Listing Fees
§ TradeYa Pro Features
§ Advanced inventory management
Revenue ($Millions)
100
§ Business tools $89.1 M
90 Other
§ Custom Matching by user and item rating
80
§ First dibs on high rated stuff 70 Transactions 51.3
§ Enhanced search 60
§ Insurance 50
§ Verified status 40
Advertising
§ Discounted shipping 30 11
Subscriptions
20
§ $4.99/month 22.5
10 $4.1 M
§ Transaction Fees for “high-value” trades 0
§ $6.99 for transactions over $1000 Y2 Y5
§ Shipping
§ Advertising
§ $0.85 Average Revenue Per User (ARPU) per quarter
www.tradeya.com 8
9. Assumptions
§ 0.01% search-to-signup conversion rate
§ Google: 46,000,000 searches/ month for barter/swap keywords
§ Craigslist: 182,000 posts/month in Barter section
§ Swap market for kids clothes alone estimated to be between $1-3b in
the US per year
§ 1 trade/month/user average
§ 15% of trades are over $1000 value
§ 34% of Craigslist items posted to barter section have $1000+ value
§ High-value trades support a $6.99 fee
§ $0.85 Average Revenue Per User (ARPU) / quarter advertising
§ Impressions (CPM), Sponsorships (CPC), Text Ads (CPC), Affiliate Share
§ $4 per 1000 impressions, 15% inventory served, 2 ads/page
§ $0.50 per click, 0.20% Click Through Rate (CTR)
§ 5% Affiliate commission, $100 average order, 0.20% CTR, 1% Conversion
§ 100 page views per person per month
www.tradeya.com 9
10. Achievements
§ Developed a “frictionless” market & exchange
platform.
§ Verified platform functionality, matured development cycle.
§ Developed the core back-end and user experience.
§ Launched the site with a video and contest.
§ 40 % average Video play to signup conversion.
§ 40% average ad impression to signup conversion.
§ 80% of signups to trade conversion.
§ 99% of users who traded would do it again.
“ TradeYa was effortless and fun!
The experience is rewarding and
different from anything I’ve done
before.” - Lauren (TradeYa User)
www.tradeya.com 10
11. Team
JARED KRAUSE DAN ABRAMS AIMEE LAGOS
Co-Founder & CEO Co-Founder, Co-Chair Co-Founder, Co-Chair
Media and technology
entrepreneur, founded Independent film producer, social Screenwriter and film director.
Goodlife.com, the largest entrepreneur, and environmental Clients include Sony Pictures'
sustainability & wellness advocate. Noted for Walter Screen Gems, CBS, Paramount
marketplace. Cronkite’s documentary TV and Dreamworks. Recently
production company, Web sites directed the award wining film 96
for the Clinton/Gore ’96 MINUTES.
campaign, Daily Variety, and
Monday Night Football.
SHANTANU BHARDWAJ REBECCA ROGERS JAIME RUSSELL LEVY WALTER O’BRIEN
Development Creative Director User Experience Strategist Artificial Intelligence
Serial entrepreneur. Founding Creative 20 years experience as Developed AI for F35 Jet
Leadership roles for Director Skype & Kazaa, interface designer, and General Electric
Moment Feed, FB-4, Creative Engineer for software designer and “Smart Grid” ,
SMobile Systems, The Total Immersion, the new media personality matching AI
Networks, Goodlife, world leader in strategist( TBWA Chiat for MyShape which
Juniper, Gigzee, augmented reality. Day, Razorfish, HUGE resulted in 9%
Zoomcourt, Terracycle, and Schematic) conversion to sale.
and JP Morgan Chase.
www.tradeya.com 11
12. Roadmap
Alpha/Beta Release 1.0 Release 2.0
§ Establish brand as #1
§ Develop core product trading destination § User base expansion
§ Expand user base
Goals §
§
Smart matching Alpha
Core user base § Monetization trials
§
§
Inventory management
Monetization refinement
§ Grow press & tech buzz § Refine core product § Sponsor refinement
§ Refine matching
§ Sponsor management
www.tradeya.com 12
13. Pro Forma Income Statement
2012-2015
($)
=
U.S.
Dollars
User
Base
2012
2013
2014
2015
Total
Cumula*ve
Users
38,500
285,194
1,144,486
2,458,804
Total
New
Subscribers
-‐
22,726
83,531
49,761
Total
Cumula*ve
Subscribers
-‐
35,583
135,513
301,190
Revenue
Subscrip*on
Fees
-‐
$1,006,697
$4,351,481
$13,382,163
Adver*sing
Revenue
-‐
$532,435
$2,212,038
$6,556,889
Shipping
Revenue
-‐
$329,318
$860,401
$2,569,843
Transac*on
Fee
Revenue
-‐
$2,301,935
$7,191,943
$21,377,733
Gross
Revenue
-‐
$4,170,385
$14,615,863
$43,886,627
Expenses
Management
$120,000
$432,000
$534,000
$1,074,000
G&A
$24,917
$354,000
$702,000
$1,632,000
Technology
$125,261
$654,000
$1,224,000
$2,880,000
Design/Frontend
$155,516
$450,000
$570,000
$1,476,000
Marke*ng
$69,343
$1,540,808
$6,568,890
$14,354,528
Total
Expenses
$495,038
$3,430,808
$9,598,890
$21,416,528
EBITDA
See revenue
(495,038)
assumptions $5,016,972
model and $739,577
for details.$22,470,099
www.tradeya.com 13
15. Marketing Plan 2012
Y1 Goals
1. Release The Product User Acquisition Goal:
2. Smart matching system
3. Grow core user base
39,000 Users
4. Grow press & tech buzz
Marketing Ad Budget & Outcomes
Pay
Per
Click
(PPC)
CPA
PPC
Ad
Budget
$15,000
CPA
Ad
Budget
$50,000
Cost
Per
Click
(CPC)
$0.50
Cost/User
$1.33
Clicks*
30,000
New
Users
by
CPM
(Goal)
37,500
Conversion
5%
New
Users
by
PPC
(Goal)
1,500
Y1 Assumptions Track Record
1. $1.33 Cost Per Acquisition 1. 40% Conversion to signup
(CPA) from CPA 2. $0.35 CPA
2. $0.50 Cost Per Click (CPC) 3. 80% Post to Transaction Success
3. 5% Conversion rate 4. High novelty factor
4. Net: $1.66 Cost Per Acquisition
* Views and clicks are effective rates and include those not directly attributable to ad spend.
www.tradeya.com 15
16. JOIN THE REVOLUTION
Contact:
Jared Krause
(415) 871-1845
www.tradeya.com
JK@TradeYa.com 16