1. Revenue Model Analysis
Introducing
RoofRing Real Estate Simplified.

2. RoofRing Revenue Model Analysis
Revenue Pricing Payment Flow
and
Streams Model Projections
RoofRing - We are with you for every step of the way

3. Revenue Streams
Customer Segments and Market Analysis

4. Our Customers
Sellers are home owners who
plan to sell their home or any real
estate.
Buyers are customers who would
like to purchase real estate.

5. United States Market Analysis
Homes on Sale per year
Average Price of Existing Home =
- USA (in millions) $193K›
Total Amount on Home Sales = $772
Billion per year
Existing
(4 M) Traditional Real Estate Agent
Commission = 6 % (3% Seller Agent +
New 3% Buyer Agent) = $46.32 Billion per
(0.3M) year
+ Numbers based on past 5 year
average (residential homes only)
Sources:
http://www.census.gov/const/uspricemon.pdf
http://www.nahb.com/fileUpload_details.aspx?contentID=55761
http://www.realtor.org/field-guides/field-guide-to-quick-real-estate-statistics

6. Based on the data collected by the National Association of Realtors (NAR)
in 2011
Buyer Stats:
- First Time buyers are 37% and Repeat Buyers are 63%
Real Estate Statistics
- Primary information sources used in home search is Internet
(88%) and Real Estate Agent (87%)
For Sale By Owner (FSBO) Statistics:
- FSBOs accounted for 10% of home sales in 2011.
- Most difficult tasks for FSBO Sellers were: Getting the right
price (12%), Understanding and performing paperwork
(11%), Having enough time to devote to all aspects of the sale
(6%), preparing home for sale (5%), selling within planned length
of time (5%)
More information from the source: http://www.realtor.org/field-guides/field-guide-
to-quick-real-estate-statistics

7. Market Assumptions
From the market analysis, customer surveys and real estate statistics from the past years,
RoofRing real estate services is planning to simplify and revolutionize the real estate
Industry saving thousands of dollars for our customers.
Assumptions and Predictions:
• In about 10 years, most customers will completely rely on efficient online real estate
services that save time and money. RoofRing will significantly disrupt the traditional
style real estate process and bring efficiency into this whole process.
• › 25% of the market likely to use our services by end of year 5 => 1 million home sales
per year by RoofRing

8. Revenue Streams
• Services (Buying and Selling) Fees
• Affiliate/Partner Revenue
• Advertising
• Lead generation to local businesses that support real
estate industry such as remodeling
contractors, architects, handy man services, home
stores, hardware stores, landscaping services etc.

9. Now that we have some understanding of our
market and revenue streams, how are we
going to price our services?

10. Pricing Models
What is best for the customer?

11. Typical Pricing Models
- Cost + Markup
- Not driven by customer
insights Based on RoofRing’s
Values
- Money Savings
- Time Savings
- Efficiency
Our Competitor’s Pricing Model
- RedFin: Commission %
- ForSaleByOwner: Package Pricing (< $1000)
- Reaslo: Flat Fee $1000

12. It’s about what is best for the customer.
We plan to experiment with following pricing options that
are commission based
Case 1: Seller uses RoofRing and Case 2: Seller and Buyer use RoofRing
Buyer uses 3rd party agent
Seller Seller pays Seller
3 % Fees to pays 2%
pays 2% + third party
Fees to Buyer
Fees to
RoofRing Agent RoofRing
RoofRing RoofRing
gives 1% gives 1%
cash- cash-
back to back to
Buyer Buyer

13. Happy Customers!
Case 3: Buyer uses RoofRing and Seller uses third party services
FREE for
Buyers! Plus
1% Cash-
back Bonus!!
** Percentage commission/cash-back is off of final home price

14. Payment Flow and
Revenue Projections
Okay, so where is the money?

15. Seller RoofRing.com
Payment Flow Buyer
3rd party
real estate agent
Case 1: Seller uses RoofRing; Case 2: Seller and Buyer Case 3: Buyer uses RoofRing;
Buyer uses 3rd party use RoofRing Seller uses 3rd party
Seller pays
Seller pays 2% Seller pays Seller pays 2% up to 3% to
up to 3% to Seller pays 2% Buyer Agent
Buyer Agent
1% cash-back to 1% cash-back to 1% cash-back to
Buyer from RoofRing Buyer from RoofRing Buyer from RoofRing
On a $500,000 home, seller saves $20,000 if he uses RoofRing;
Buyer will always get 1% cash-back if RoofRing is involved in the transaction.

16. ?
What are our revenue
projections?
Think big!

17. Projections
Year Market Focus Target Number Total Market Average Home Revenue per year based
of transactions (Average Price on 2% pricing model
per year 2007-11)
(Buying and
Selling)
1 Bay Area (US) 350(0.5%) 70,105 $414,071 2.8M
2 Bay Area (US) 2103(3%) 70,105 $414,071 17M
California (US) 4100(0.5%) 410,168 $258,275 21M
3 Bay Area (US) 7010(10%) 70,105 $414,071 58M
California (US) 20508 (5%) 410,168 $258,275 105M
4 US 64500(1.5%) 4.3M $193,000 248M
>5 Other Needs Needs Needs analysis
Countries analysis analysis
Sources: http://www.dqnews.com/Charts/Annual-ts/CA-City-
Charts/ZIPCAR11.aspx

18. RoofRing Message?
What’s Your
Contact Us at info@roofring.com