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MyThings: the business model behind the world’s most valuable registry of belonging


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MyThings: the business model behind the world’s most valuable registry of belonging
Benny Arbel
MIT Enterprise Forum 13th Annual Event

Published in: Business, Technology

MyThings: the business model behind the world’s most valuable registry of belonging

  1. 1. The Business Model Behind the World’s Leading Registry of Belongings MIT Forum: December 2007 Benny Arbel, CEO [email_address]
  2. 2. Agenda <ul><li>Vision </li></ul><ul><li>Value Proposition </li></ul><ul><li>Why MyThings? </li></ul><ul><li>Unique Acquisition Model </li></ul><ul><li>Market Size, Trends </li></ul><ul><li>Business Models </li></ul><ul><li>Company Information </li></ul><ul><li>Demo </li></ul>
  3. 3. MyThings Vision Insurance Law Enforcement Online Auctions Manufacturers Consumers Retailers The world’s most valued registry of belongings
  4. 4. Value Proposition Customer Ownership Information Product Database UI & Services <ul><li>Unique Acquisition Channel </li></ul><ul><li>Rich purchase behavior and ownership data </li></ul><ul><li>Independent platform with complete privacy and anonymity to Retailers/OEMs </li></ul><ul><li>Intuitive UI, connecting consumers to ALL relevant services and ALL valuable information… </li></ul><ul><li>… about things consumers value most </li></ul><ul><li>Comprehensive data base </li></ul><ul><li>Retailer, Brand, Product independent </li></ul><ul><li>Deep multi category data </li></ul>
  5. 5. The MyThings Advantage <ul><li>No-one captures detailed consumer ownership data (multi-items & multi-sources) at POS like MyThings </li></ul><ul><li>No-one has a Web 2.0 independent platform… non Retailer, OEM or Brand specific like MyThings </li></ul><ul><li>No-one… connects (a) deep consumer ownership data with (b) comprehensive product DB and (c) in-depth, value added aggregates services /content /community tools like MyThings </li></ul>Customer Purchase Behavior Product Database UI & Services Customer Purchase Behavior Product Database UI & Services
  6. 6. <ul><li>Why a portfolio? </li></ul><ul><ul><li>Organize stats about purchases in a “Digital Shoebox” </li></ul></ul><ul><ul><li>Access to ALL important information & ALL relevant services </li></ul></ul><ul><ul><li>Track value of belongings, then sell – donate – recycle them more easily </li></ul></ul><ul><ul><li>Protection – secure online record and inventory for insurance purposes </li></ul></ul><ul><li>Why online? </li></ul><ul><ul><li>Find aggregated, useful content from other members, web-sites and businesses </li></ul></ul><ul><ul><li>Meet community members with similar interests </li></ul></ul><ul><li>Why MyThings? </li></ul><ul><ul><li>Secure, on-line, one-stop place to enjoy things you value most </li></ul></ul>
  7. 7. Relevant web content collected via Digg style social sharing all the Content, Community & Services related to my things are in one place
  8. 8. MyThings Services Latest Downloads Digital Manual Find Accessories Repair Information Warranty Info Find Retailers Forums Tips and Tricks Market Value Estimator Insurance FAQs <ul><li>Access ‘dynamic’ generated services </li></ul><ul><li>One stop place for the ‘right’ </li></ul><ul><li>information about the ‘right’ product, </li></ul><ul><li>when you need it </li></ul><ul><li>Product FAQs to reduce partner's </li></ul><ul><li>customer service contacts </li></ul>
  9. 9. MyThings ‘Hot Links’ <ul><li>Relevant content… </li></ul><ul><li>… ‘ dynamically’ generated </li></ul><ul><li>One stop place to find… </li></ul><ul><li>- expert opinions </li></ul><ul><li>- tips & tricks </li></ul><ul><li>- professional advise </li></ul><ul><li>- helpful hints </li></ul><ul><li>- practical instructions </li></ul><ul><li>- interesting stories </li></ul><ul><li>… and much more </li></ul>
  10. 10. World Largest DB of Belongings… continued <ul><li>Trace is the world’s largest database of stolen property from 22 countries and over 600 police agencies </li></ul><ul><li>Trace recently obtained approval to receive FBI’s 1.1 million records from 18,000 US police departments </li></ul><ul><ul><li>The only private company to receive FBI’s US National data </li></ul></ul><ul><li>Trace is the only viable solution available to: (a) reduce the loss of commercial inventory shrinkage, a $50 billion problem annually, and (b) stop exponential growth of stolen property moving through online auctions </li></ul>
  11. 11. World Largest DB of Belongings… continued <ul><li>Great acquisition tool </li></ul><ul><ul><li>Universities are asking all new students to register their valuables on MyThings (endorsed, by the Deans office, local and campus police) </li></ul></ul><ul><ul><li>Crime prevention is Job #1 - Law enforcement agencies all over the country are asking people to proactively register belongings to prevent theft & increase chance of recovery </li></ul></ul><ul><li>Part of monetization strategy </li></ul><ul><ul><li>Trace shall become the “clear title” check for all on-line and off-line second hand transactions </li></ul></ul><ul><ul><li>Trace shall be leveraged in the corporate sector as a tool reduce the loss of commercial inventory shrinkage </li></ul></ul><ul><ul><li>Trace, is the worlds largest DB of stolen property (over 2mm records) is in conversations with MSN to be incorporated into MSN Search </li></ul></ul>
  12. 12. Consumer Journey
  13. 13. Unique Acquisition Strategy <ul><li>Simple, clear and compelling Value Proposition </li></ul>We acquire consumers at POS Fact: 15% of all consumers click on this link
  14. 14. TigerDirect – Customer Journey
  15. 15. TigerDirect – Order Confirmation Page
  16. 16. TigerDirect – CoBranded Landing Page
  17. 17. TigerDirect Ads on Consumer Portfolio Page
  18. 18. Distribution Partnership Highlights <ul><li>Integrated Channel partners include: </li></ul><ul><ul><li>Tesco, ASDA, Currys, Casio, Halfords, Jessops, TigerDirect, LetsTalk and more... </li></ul></ul><ul><ul><li>Conversion rates outstrip industry norms at 34% (5% of top line transactions) </li></ul></ul><ul><li>Pipeline partners include: </li></ul><ul><ul><li>Dell, Gateway, Lenovo, Panasonic, SonyStyle, Toshiba, Target, Best Buy, Lowe’s, Wal-Mart, Allianz Cornhill, Nationwide Insurance and more… </li></ul></ul>
  19. 19. Size of the Prize: US & European Market 5% of Global eCommerce Transactions <ul><li># Participants in B2C eCommerce by 2011 = 450 Million </li></ul><ul><li>MyThings Share: 5% = 23 Million Members </li></ul>Source: Forrester Research
  20. 20. Online communities built around user-generated content are attracting large audiences… Monthly unique US visitors (M) to leading social networking sites, Aug. 2006 – Aug. 2007 Social networking ad spending 2006 and 2010 ($bn) Monthly unique US visitors (M) to leading social networking sites CY2007E US advertising revenue spending by site ($M)
  21. 21. … and business models are evolving to monetize these audiences <ul><li>Display </li></ul><ul><li>Performance- based / lead generation </li></ul><ul><li>Video </li></ul><ul><li>Subscription-based </li></ul><ul><li>Transaction-based </li></ul><ul><li>Capitalize on growth in online advertising </li></ul><ul><li>Large audiences </li></ul><ul><li>Attractive demographics </li></ul><ul><li>Segmentable audiences </li></ul><ul><li>Benefit from network effects – “word of mouth” advertising </li></ul><ul><li>Potential for significant recurring revenue </li></ul><ul><li>“ Self-published” content </li></ul><ul><li>Can add all types of additional services to monetize audience / user base </li></ul><ul><li>Volatile </li></ul><ul><li>Reliance on heavy customer acquisition costs </li></ul><ul><li>Subject to “fads” </li></ul><ul><li>Customer acquisition costs </li></ul><ul><li>Generating primary traffic </li></ul>Advertising Listings Job listings Subscriptions Downloads How revenues are generated Strengths Challenges
  22. 22. Online media consumption and ad spending are projected to continue their strong growth Global broadband households (M) Global online advertising market ($B) Total US ad spending ($B) & Internet penetration (%) Internet consumption is gaining at the expense of traditional media ($B)
  23. 23. Growth is fueled by targeted, more-effective advertising formats US Internet advertising revenues ($B) by pricing model US Internet advertising revenues ($b) by segment US online rich media advertising ($b) & penetration (%) Online advertising formats supported by US Interactive publishers’ sites
  24. 24. Our Business Model: Infomediary Consumers Marketers Retailers Manufacturers Art & Collectibles Consumers Online bookseller Online Communities Powerful method for connecting buyers and sellers
  25. 25. Revenue Streams <ul><li>Marketing Platform (Engagement/Participation Marketing) </li></ul><ul><ul><li>advertising, messaging, behavioral targeting (retargeting) </li></ul></ul><ul><li>Third party services </li></ul><ul><ul><li>Insurance, warranties, accessories, item sales, price data, etc. </li></ul></ul><ul><li>Trace </li></ul><ul><ul><li>Product DB Check for all on-line and off-line second hand transactions </li></ul></ul><ul><ul><li>Commercial inventory shrinkage </li></ul></ul><ul><ul><li>Search </li></ul></ul><ul><li>In-House Services </li></ul><ul><ul><li>Subscriptions </li></ul></ul><ul><ul><li>Data mining </li></ul></ul><ul><ul><li>Market place </li></ul></ul>
  26. 26. Company Snapshot <ul><li>Creating the most valuable global database of people’s belongings </li></ul><ul><li>Strong team and advisory board </li></ul><ul><li>24 employees </li></ul><ul><ul><li>Headquartered in California (product, marketing, sales and partnerships) </li></ul></ul><ul><ul><li>London (sales, partnerships) </li></ul></ul><ul><ul><li>Tel-Aviv (engineering) </li></ul></ul><ul><li>Rapid growth in customer base and user engagement </li></ul><ul><li>Backed by Accel Partners and Carmel Ventures </li></ul><ul><li>Board: Kaj-Erik Relander, Harel Beit-On, Tom Byers, Eli Talmor, Udi Zaidman and Benny Arbel </li></ul>
  27. 27. [email_address] Thank you
  28. 28. Trace Demo #1 Manual search for second-hand dealers
  29. 29. Search by Serial Number
  30. 30. Search Results Page
  31. 31. Item Detail Page
  32. 32. Crime Details
  33. 33. Third-Party Site
  34. 34. PDF with Match
  35. 35. Alert Police
  36. 36. Text Search
  37. 37. Text Search Results
  38. 38. Item Detail Page
  39. 39. Image Search
  40. 40. Image Search Results
  41. 41. Item Detail Page
  42. 42. Trace Demo #2 Automated search in online auctions
  43. 43. Online Auction Search
  44. 44. On-line Auction Search Validating Item
  45. 45. On-line Auction Search - Match Results: Serial Number
  46. 46. On-line Auction Search Match Results: Image
  47. 47. On-line Auction Search Actions
  48. 48. On-line Auction Search