Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013
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The team interviewed 94 customers and developed several iterations of their Twibo product. Initially focusing on celebrities and schools, they pivoted to serving businesses by matching them with Chinese social media marketing agencies. While the monthly fee model was not viable, they found that a full-service agency charging over two years could achieve a lifetime customer value higher than the customer acquisition cost, making social media management a potential lifestyle business.
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Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013
- 1. TWIBO FINAL PRESENTATION Leansanity Team, UC Berkeley, LLP 2013 Total Customer Interviews: 94
- 2. Team members Haohan (Alfred) Yuan Master of Financial Engineering, ’13 Hacker Kuan (Kevin) Yang Master of Financial Engineering, ’13 Customer Development Zhibai (Blake) Han M.Eng. IEOR, ’13 Chinese Social Media Expert Harvey Duan EWMBA, ’14 Business Development
- 3. Initial Idea: Providing Cutting-edge Weibo Online Marketing Solutions Three segments: Celebrities, Private Schools, Businesses Self-service Tool: • Reposting • Analytics
- 4. Diagram of MVP MVP Account setup Account verification Tweet reposting Content generation Pain Content management Follower interaction Language barrier Cultural challenges Gain Global audience Central platform Features Translation service Content management Recommendation Engine
- 6. What we did Question But is there a large enough market?
- 7. Market Size
- 8. What we found Number of Twitter Users 140,000,000 % of Twitter Users with over 100,000 followers 1% Number of Twitter Po 1,400,000 % of converting users 2% Number of paying customers 28,000 Average payment per customer per month $100 Target Market $33,600,000
- 9. What We Learned ―Follow the money.‖ Brett Wilson, CEO of TubeMogul
- 10. Canvas Version 2: Serve Businesses Focus: Businesses Find Talented Marketers; Add Authentic Followers; Partner: Chinese Social Media Marketing Agencies Matching American Businesses with Chinese Agencies
- 11. Key Activities • Customer acquisition Direct sales • BD talks Which plan? • Match weibo marketers If Premium • Set up account • Mirroring If Basic • Collect service fee Pay agencies
- 13. What we found ―We were a bit surprised at the monthly fee —we really are not in a budgetary position to partner with you.‖ —Lia L. Kennett General Manager, D: All Things Digital
- 14. Canvas Version 3: Business Model Validation Enterprise weibo management fee vs Enterprise subscription fee platform Educating customer segments Educated vs Non-educated
- 15. Customer Acquisition Cost Educated customer 1 hour lead gen 4 hours of education + business development 25% acceptance rate $50 per hour CAC = $1,000 Non-educated customer 1 hour lead gen 1 hours of education 10% acceptance rate $50 per hour CAC = $1,000 0 200 400 600 800 1000 1200 Educated Non-educated Customer Acquisition Cost
- 16. LTV – Subscription Fee Platform LTV = expected life x avg revenue x gross margin Tweet re-posting only for non-educated customers Expected life = 6-9 months Avg revenue (tweet re-posting) = $100 per month Gross margin = 90% CAC > LTV $1,000 > $810
- 17. LTV – Weibo Management LTV = expected life x average revenue x gross margin Full-service social media agency Expected life = 2 years Average revenue per customer over expected life = $17,840 Months 1-2 = $2,000 per month (basic) Months 3-4 =$4,000 per month (advanced) x 50% retention = $2,000 Months 5-6 = $6,000 per month (pro) x 25% retention = $1,500 Months 6-12 = $6,000 per month x 10% retention = $540 Months 12-24 = $6,000 per month x 5% retention = $300 Gross margin = 50% LTV = $8,920 LTV > CAC $8,920 > $1,000 More Lucrative!
- 18. Conclusion 1. Not a venture backed business. 2. Small and medium size businesses are not yet ready to adopt Chinese social media marketing strategies. 3. Our sales cycle includes educating the customers about the importance of Chinese social media marketing.
- 19. Is this a viable lifestyle business? Yes Twibo, LLC Onethousand 1,000.00 Weibo Consulting StudentUniverse, Inc.
- 20. Final Canvas
- 22. Appendix
- 24. Burn Rate 1 back end engineer = $110,000 1 front end engineer = $110,000 2 direct salespeople = 2 x $100,000 = $200,000 1 SG&A = $60,000 Year 1 burn rate = $480,000 Monthly burn = $40,000
- 25. Breakeven Analysis Breakeven = 960 paid months of basic service @ $2,000 per month or 80 active paid customers per month
- 26. Week 1
- 27. Week 2
- 28. Week 3
- 29. Week 4
- 30. Week 5
- 31. Week 6
- 32. Week 7
- 33. Week 8
- 34. Week 9
- 35. Week 10
Editor's Notes
- you should work on a market big enough to make you profitable, video advertising seemed like the kind of market with the decent sizeif you are charging companies, take money from the budgets they already have, like ads, not from budgets they need to createdon't give out equity too easily, pay developers instead.
- delete
- Show picture of student universe
- appendix
- appendix