twibo final presentation - lean launchpad, uc berkeley, spring 2013
DESCRIPTION
Twibo--a Chinese social media marketing startup--final presentation on Steve Blank's Lean Launchpad class at UC BerkeleyTRANSCRIPT
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TWIBO FINAL PRESENTATION
Leansanity Team, UC Berkeley, LLP 2013
Total Customer Interviews: 94
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Team members
Haohan (Alfred) YuanMaster of Financial Engineering, ’13
Hacker
Kuan (Kevin) YangMaster of Financial Engineering, ’13
Customer Development
Zhibai (Blake) HanM.Eng. IEOR, ’13
Chinese Social Media Expert
Harvey DuanEWMBA, ’14
Business Development
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Initial Idea: Providing Cutting-edge Weibo Online Marketing Solutions
Three segments:
Celebrities,Private Schools,Businesses
Self-service Tool:• Reposting• Analytics
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Diagram of MVP
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Initial Product Features
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What we did
Question But is there a large enough market?
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Market Size
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What we found
Number of Twitter Users140,000,00
0
% 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$33,600,00
0
Invalidated:
Market Size
Too Small
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What We Learned
“Follow the money.” Brett Wilson, CEO of TubeMogul
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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
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Key Activities
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What we did
Great!
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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. KennettGeneral Manager, D: All Things Digital
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Canvas Version 3: Business Model Validation
Enterprise weibo management feevs
Enterprise subscription fee platform
Educating customer segments
Educatedvs
Non-educated
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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
Educated Non-educated0
200
400
600
800
1000
1200
Customer Acquisition Cost
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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%
LTV = $540-810CAC > LTV
$1,000 > $810
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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 > $1,000More Lucrative!
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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.
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Is this a viable lifestyle business?
YesTwibo, LLC
One thousand1,000.00
Weibo Consulting StudentUniverse, Inc.
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Final Canvas
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Thank you!
4000
2500
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Appendix
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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
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Breakeven Analysis
Breakeven =
Breakeven = 960 paid months of basic service @
$2,000 per monthor
80 active paid customers per month
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Week 1
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Week 2
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Week 3
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Week 4
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Week 5
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Week 6
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Week 7
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Week 8
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Week 9
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Week 10