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TradeYa

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TradeYa

  1. 1. www.tradeya.com 1
  2. 2. Contents 1.  The Concept, Idea, and Timing 2.  Revenue Model & Assumptions 3.  Achievements, Team, & Roadmap 4.  Pro Forma Income & Spend Planwww.tradeya.com 2
  3. 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. 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. 5. TradeYa: Social Network + TradingOpportunity = 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/AudioComputer 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 Paintingwww.tradeya.com 5
  6. 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 relationshipwww.tradeya.com 6
  7. 7. TradeYa.com Simple, intuitive interface. Haves and wants, no prices.www.tradeya.com 7
  8. 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 quarterwww.tradeya.com 8
  9. 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 monthwww.tradeya.com 9
  10. 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. 11. Team JARED KRAUSE DAN ABRAMS AIMEE LAGOS Co-Founder & CEO Co-Founder, Co-Chair Co-Founder, Co-ChairMedia and technologyentrepreneur, founded Independent film producer, social Screenwriter and film director.Goodlife.com, the largest entrepreneur, and environmental Clients include Sony Picturessustainability & wellness advocate. Noted for Walter Screen Gems, CBS, Paramountmarketplace. 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. 12. Roadmap Alpha/Beta Release 1.0 Release 2.0 §  Establish brand as #1 §  Develop core product trading destination §  User base expansion §  Expand user baseGoals §  §  Smart matching Alpha Core user base §  Monetization trials §  §  Inventory management Monetization refinement §  Grow press & tech buzz §  Refine core product §  Sponsor refinement §  Refine matching §  Sponsor managementwww.tradeya.com 12
  13. 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.$22,470,099  www.tradeya.com 13
  14. 14. Y1 Goals 1.  2.  3.  4.  Release The Product Smart matching - Alpha Core user base Grow press & tech buzz Spend Plan 2012 ($) = U.S. Dollars Q1 (Act) Q2 (Act) Q3 Q4 2012 Management Chief Executive Officer $30,000 $30,000 $30,000 $30,000 $120,000 $120,000 G&A Accounting $430 $0 $0 $0 $430 Legal $0 $0 $0 $0 $0 Office + Expenses $4,769 $2,021 $7,198 $10,500 $24,487 $24,917 Technology Development $28,500 $0 $35,000 $35,000 $98,500 Server Costs Etc $180 $1,161 $2,421 $3,000 $6,761 Search Integration $20,000 $20,000 $125,261 Design/Frontend Chief Experience Officer $22,500 $10,000 $17,600 $22,800 $72,900 User Interface $0 $0 $6,666 $15,000 $21,666 Design $11,600 $8,100 $11,250 $30,000 $60,950 $155,516 Marketing CPM & PPC Ad campaigns $13,360 $4,989 $16,248 $9,000 $43,597 Search Engine Optimization $2,000 $3,000 $5,000 Other (SEO, Research, Misc.) $90 $656 $5,000 $15,000 $20,746 $69,343 Total Expenses $111,429 $56,927 $133,383 $193,300 $495,038www.tradeya.com 14
  15. 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. 16. JOIN THE REVOLUTION Contact: Jared Krause (415) 871-1845www.tradeya.com JK@TradeYa.com 16

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