TheNextStageofMoz:HowatinyMom+SonconsultancybecametheworldleaderinSEOSoftware,andourroadmaptobeingSeattle’snext$1Billioncompany

Rand Fishkin, CEO & Co-founder, SEOmozJuly 2011

Didyouknow?Atonepoint,Rand+Gillianhadjustunder$500Kinpersonaldebt.By2007,itwasallpaidoff,thankstothemagicalsuper-awesomenessofSEO!

2004

1981

1997

2001 Feb.2007

Nov.2007

Oct.2008

Sept.2010

July2011

Gillian(Rand’sMom)foundsthecompanythatwillbecomeSEOmoz

Randstartsworkingw/Gillianbuildingwebsitesforsmall,localbusinesses

RanddropsoutofUW,2classesfromgraduationtoworkfulltimew/Gillian

Deeplyindebt,andfailingtogettraffictoclients’sites,RandstartstheSEOmozBlogaspartoflearningtheSEOprocess.

SEOmozlaunchesitsfirstsubscriptionsoftwareproduct,

“PRO”for$39/month

SEOmoztakesaninvestmentof$1.1MfromIgnitionPartners

&CuriousOffice

Linkscape,SEOmoz’s webindexandlinkgraph,

launches.ByDecember,moz isprofitable.

A Little Moz History (now in color!)Moz’s collectionoftoolsbecomesasingular,

campaign-basedwebapp.Pricesriseto$99/$499/

$1999permonth.

SEOmoz ismovingfromjust“SEO”tosocialmedia,

contentmarketing,analytics,localandvideo.

Tothisend,we’veacquired“Moz.com.”

Moreaboutourhistoryhttp://www.seomoz.org/blog/the-story-of-seomoz

MonthlyVisits

Wetookoneroundoffinancingin2007;$1.1MM

fromIgnition+CuriousOffice

In2009,wedroppedconsultingentirely

Aprilof2011,wehit1.2+MM

visits/monthand10K+subscribers

2011willbeourfirst8figureyear,andwe

maintainmarginsof83%+

How’d We Do That?

Upuntil2010,SEOmozhadneverspentmoneydirectlytoacquirecustomers!(NoPPC,noads,justconferencesandcontentproduction,aka“sweatmarketing”)J

Blogs+Blogging

CommentMarketing

News/Media/PRSEO

SocialNetworks

WordofMouth

Q+ASites

Forums

OnlineVideo

Podcasting

Webinars

Research/WhitePapers

Infographics

SocialBookmarking

INBOUNDMARKETING!(AKAallthe“free”trafficsources)

Direct/ReferringLinks

Type-InTraffic

Email

LocalPortals

That’s what we want to help othercompanies measure + improve through our

cloud-based software.

Macroeconomic Trends that Benefit Moz

Viahttp://www.ftijournal.com/images/uploads/Journal_p6-7.pdf

Marketing Spend is Still Unbalanced vs. Behavior

Organic Marketing is Under-Invested

WebTrafficisdrivenalmostentirelybyorganic/earnedmedia,yetnearlyalloftheinvestmentindrivingtraffictowebsitesisthroughpaidchannels…Thisisanunsustainabledichotomy.

Organicdrives90%+oftraffic(butgarnersonly~$5billionof

investmentin2011)Paiddrives<10%ofweb

traffic(butwinsawhopping

$31+Billionofinvestmentin2011)

Percent of Web Traffic from Various Sources to the Average Website

Thesechallengesrequirescalable,highqualitysoftwaretosolve.Veryfewcompaniesareinvestinginthisspaceinaseriousway,andalmostnonetargettheSMBmarket.

It’s a Data-Driven World and Efficiency is King

Problem(s) We’re Here to Solve

Organic Web Marketing is Poorly Understood

Eventhosemarketerswhohaveanunderstandingoftheprocessoftengetlostinthedetailsormiredinthecomplexityoftyingcreativetometrics.

InvestinContent,Search,Social,Localand/or

ParticipatoryOnlineChannels

MeasureTrafficandROIEffectively

Re-InvestinROI-PositiveChannels

EarnOutsizedTraffic/Branding/CustomerAcquisitionRewardsvs.Paid

MarketingChannels

The Web Marketer’s Weekly Analytics Challenge

Facebook Insights

Twitter(Topsy/Hootsuite)

Everyweek(sometimesdaily),webmarketersneedtologintoeachoftheseservices(orasuitablesubstitute)tocollecttheirKPIs:

FourSquare

Yelp

GoogleAnalytics

GoogleWebmasterTools

BingWebmasterTools

GoogleAlerts

GoogleLocal

Many(75%+): Most(~50%): Some(~10%):

SEOmoz

Feedburner

PostRank

Whyshouldamarketerloginto10+sites/toolsjusttogetthebasicnumberstheyneedtomeasureandimprovetheircampaigns?Moz can(andshould)putthisallinoneplace.

Bit.ly

Yahoo!SiteExplorer

Specific, Painful Web Marketing TasksEachoftheserequiresspecialtools,largeamountsofmanuallabororcustom-built,in-house/agencysolutions:

ResearchingNewOpportunities

IdentifyingHigh-ROIChannels

Prioritizing+ManagingTasks

FindingErrors+Problems

OptimizingExistingChannels

TrainingNewMarketers

Thesechallengesrequirescalable,highqualitysoftwaretosolve.Veryfewcompaniesareinvestinginthisspaceinaseriousway,andalmostnonetargettheSMBmarket.

Our Target Market

Today,Moz focusesonjustthered“SEO”circles.Inthefuture,manymoreofthesewillbecomecustomertargets.(BTW- Icheatedbyusingtwobubblesfor“SEO”– sorryaboutthatVennDiagrampurists!)

Moz hascapturedanestimated5-10%ofjustthese2circlestodate

We Help Marketers Who Focus on Organic

Webelievewe’vecaptured~5%ofthismarketaspayingcustomersand~15%asregisteredmembers

Immediate Customer Targets:

SEOSpecialist

SearchMarketer

Thesetitles/jobfunctionsrepresentourcurrent(2011-13)targets:

SiteOwner

Domainer

DirectorofMarketing

OnlineMarketingManager

SEOConsultant

OrganicMarketingConsultant

Webmaster

In-House(~55%ofcurrentmembers)

Consultant/Agency(~35%ofcurrentmembers)

Independent(~10%ofcurrentmembers)

Blogger

Search+SocialConsultant

SocialMediaExpert

Thesejobtitles/functionshavethemostdirectuseforourcurrentsoftwaresubscription.

WebMarketingConsultantDirectorofGrowth

InboundMarketer

Where are We Today?

Number of PRO Subscribers

# of New Free Trials / Day

Implied Customer Life

Avg. Customer Lifetime Value

Avg. Cost of Paid Acquisition

2011 Estimated Revenue

Current Revenue Run Rate (June)

~13,500

~100

~9 Months

~$900

~$100

$12 - $13 million

~$10.8 million

Avg. Monthly Revenue / Subscriber ~$93

Monthly Visits to Moz + OSE

Email Subscribers

Estimated Net Profit in 2011

Gross Margins

Staffing Costs

% of Free Trials Converting to Paid

Churn Rate in 1st 2 Paid Months

~1.25 million

~300K

~$1 million

~82%

~$650K / Month

~57%

~25%

Crawling, Serving, Hosting + Processing ~$180K / Month

Planned Investment Round

Onto Balance Sheet:

New Board:

Raising:

Founder Equity:

$13-19 Million

2 Investors (Michelle +1)2 Insiders (Rand +1)1 Independent (TBD)

$20-$25 Million

$6-7 Million

Business Risks

Google Integrates Much More SEO & Social Analytics Functionality in the Short Term

The Web Becomes Less Open

We Fail to Adapt/Grow Fast Enough to Keep Up w/ Organic Marketing Shifts

Our Reputation Suffers Due to Missteps in Culture, Data Quality or Reliability

Use of Funds / Growth Opportunities2011-2012

Serve a Wider Audience w/ Expanded Product

Whateverorganicmarketersareusingtodrivetrafficandderivevalue,we’llhelpthemmeasure,monitorandimproveitwithasuitethat’ssimpleenoughforanyonebutpowerfulenoughtosupportadvanced-expertlevelpractitioners.

Become the Default Productivity + Research Suite for Organic Web Marketers

2 Year Team Roadmap from 40-100 Mozzers

UserExperience

Product(DesigntheRightSoftware)

Design+UI

SubjectMatterExperts

Wireframing +Specs

Testing/QA

PR/Press/Outreach

PaidAcquisition

BroadWebCrawl

RankingsData

Events

Engineering(BuildAmazing$#*!)

Marketing(BringinCustomers)

Content/Media/Research

LocalData

CommunityManagement

SocialData

FrontEnd/WebApp

FreshWebData

Operations(MakeMoz RunSmoothly)

CustomerSuccess(DelightMoz Members)

Retention(KeepPROMembersPRO)

Quant+CohortAnalysis

Email+On-SiteMessaging

Q&AAssistance

API&Higher-TierSales

CustomerService

CustomerOutreach

Financial+Accounting

Facilities

HR/Mozzer Happiness

Sales/Marketing Investments

Organic(GrowFreeTraffic)

PaidAcquisition(PPC,Behavioral,Social,etc)

Branding(MakeMoz Known+Trusted)

Technology Investments

WebCrawl(GrowBreadth+Freshness)

FreshWeb(Competew/GoogleAlerts)

SocialGraph(MaptheMajorNetworks)

Product Investments

LowPriceModel($25/monthforlighteruse)

Moz Alerts($10/mth competitortoGAlerts)

ClassifyingtheWeb(EmployingHumanRaters)

Potential Acquisitions

Why Moz is Uniquely Positioned to Win the Organic Market

#3:

#4:

#1:

#2:

Proven record of 2X+ growth for 4 years

Unique, world-changing culture & attitude

Passionate community of 300K+ marketers

Our technology lead is very hard to catch

We have a rare opportunity to become Seattle’s next $1 billion+ company, and we’d

love to have you join us for the ride.