Appealing to a Wider Demographic

Overview• Viewabill is a new and unique concept with no

precedents or industry standards to reference for pricing.

• While the current pricing for Viewabill is less of an issue with firms that are being persuaded to adopt the system by notable clients, it is still a consistent point of resistance.

• As one would assume, the smaller the firm, the higher the resistance. 2

A Firm Grasp…

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DropoutsWhen taking a look at service providers who explore the use of Viewabill independent of client influence, the number of them that fail to become paying subscribers after beginning registration increases exponentially.

93%

7%

Service Providers

Dropouts (Approximate)

Paying Users (Approximate)4

Dropouts, cont.

On outbound support calls to registered service providers, the most frequently mentioned reason for inactivity was concern about cost.

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Relevance• Pinning down firms working with larger clients is the

logical way to initially gain revenue. However, it is not a practical long-term solution for growth.

• Focusing almost exclusively on firms that have corporate clients severely limits the number of potential Viewabill users since there are a finite number of firms that meet this criteria.

• As we work with more companies to connect their outside counsel, there will be a significant amount of overlap with many clients utilizing the same firms.

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Meanwhile…• Viewabill loses out on converting any web

traffic from smaller firms and anyone outside of the legal industry to paying subscribers

• Web Designers

• Graphic Artists

• Contractors

• Consulting Firms7

Small Firms & Businesses• Law firms with 100 employees or more make up

less than 1% of the entire U.S. law firm market

• Firms with less than 10 employees make up 91%

• There are 8.1 million small businesses in the U.S.

• Of those, over 50% are part of growing industries that would benefit from the use of Viewabill

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The number of products and services that cater to small businesses is growing.

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VAB Pricing: Snapshot Impressions

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Viewabill provides a service worth paying for, and currently has no peers.• However, consumers do have a reference point

for billing service pricing, the systems that Viewabill is compatible with.

• Potential subscribers will, naturally, compare the price of Viewabill’s service to the price of the cloud software they are looking to link with it.• Providers using server based systems, while

generally leading to more lucrative subscriptions, require involvement from nearly every Viewabill employee and can take months to close. 11

$3 Hamburger, $10 Bun • Viewabill is often presented as an add-on to

software like Harvest.

• Objectively, paying a fee for a service that lets you build invoices, run reports, and receive payments from an unlimited number of clients; then paying a significantly larger fee to be able to share that information with clients could throw off many users who discover Viewabill through their billing software when they see the add-on is more expensive than the system it supplements. 12

Base Price per Month, VAB vs. Compatible Systems

Harvest Freshbooks Bill4Time (non-attorney)

Quickbooks Clio(non-attorney)

Viewabill

Minimum Use Plan

FREE FREE FREE N/A N/A $5

Solo $12 $19.95 $9.99 $12.95 $25.00 per user

$41.66

Professional $49 $29.95 $19.99 $26.95 $25.00 per user

$166.66

Enterprise $99 $39.95 $59.99 $39.95 $25.00 per user

$375 13

From the Source“Viewabill looks amazing and it’s a huge plus that it integrates with Harvest. But unfortunately I was looking for a very low cost solution because, despite having a lot of clients, I don’t have many who would even be interested in this to make it worth the cost (I’d just rather manually give them a bill update at intervals or when they ask). Perhaps Viewabill isn’t really for ‘small businesses.’ I just wanted to share why I didn’t continue with my account.”

- A Dropout, 7/17/2013

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Taking a Page• The cloud based systems Viewabill is compatible

with tier their pricing most commonly based on the number of users who are able to access the software.

• They also offer the opportunity to add users and services à la carte prior to graduating to the next plan. This allows them to advertise a lower rate than what the user might actually end up paying.

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The “Freemium” Model

“At the core of the ‘Free’ models are the products or services being offered to the customer. Most Internet products or services fall into the definition of an Experience Good: a product that needs a period of use before the customer can determine the value they can derive from it.

A good example is Dropbox. Consider Drew Houston’s words: ‘The fact was that Dropbox was offering a product that people didn’t know they needed until they tried.’”

An excerpt from a Tech Crunch article on what’s referred to as The “Freemium” Model:

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Champions of Freemium

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Premium access eliminates commercials, allows access on mobile devices, and provides better sound quality.

Premium (“Hulu Plus”) users are allowed mobile access and can watch entire seasons of shows rather than just a few recent episodes.

Amazon is a “Prime” example of a company that neglected short-term gains (much to the chagrin of their shareholders) in favor of building a user base to

ensure long-term growth.

However, Viewabill does not necessarily have to forsake the pursuit of short-term profits in order to acquire users.

Catch ‘em All• Offering a free to use plan similar to Harvest’s and

Bill4Time’s says to a prospective user, “We’d love for you to try us out now while your business is starting up, and we hope you’ll stick around as you grow.”

• In these early stages when building a brand and awareness are so important, offering price flexibility is the easiest way to increase your number of subscribers.

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Two Step• Larger firms driven to

Viewabill by general counsel provide a user base that is marketable and builds credibility.

• Smaller firms and businesses provide a constantly growing stream of sustainable revenue.

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The PrescriptionViewabill could easily offer lower base subscription prices while incrementally increasing costs in a way that’s beneficial to users…

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Viewabill Premium?• Additional account admins for SPs at a per user cost

• Self explanatory, and a cost users both expect and are willing to pay

• Placing character restrictions on task narratives (vis-à-vis Twitter) to non-premium subscribers

• Most SPs will probably be fine with the minimum amount of allowed characters, but this will provide added value to premium subscribers

• The ability to receive payments directly through VAB for premium subscribers

• Something that their billing software probably already lets them do, but paying through VAB might be easier for their clients

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Viewabill Premium?, cont.• Enhanced VAB customer support for premium subscribers (down

the line)

• Example: If an SP sends out a request, the support team (when it’s larger) can immediately receive a notification and attempt to connect the client without the SP having to ask. The SP can even include special instructions if needed such as, “Allow 3 days to respond before reaching out.”

• Custom Viewabill profile pages for SPs so that clients can connect automatically without either party sending a request

• Clients can search for their SPs who will have set up VAB profiles (similar to social media profiles) and send them requests. This will allow the layman to still connect to their SP even if they don’t have a specific contact at the firm to send a request to, or if they don’t know their contact’s email address.

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Viewabill Premium?, cont.• Additional matter bundles

• Another à la carte option that both increases profit and meets a demand that has been presented by service providers: a desire for matter packages that fall between the current subscription intervals.

• Partnership with Angie’s List

• Viewabill Premium service providers are searchable on the “Viewabill Certified” section of Angie’s List, and have a shield on their profile page. (Consequently, clients see the shield and click for more information out of curiosity, get more information and request its use by other providers)

• Having premium options also provides us with a chance to provide value up front at registration.

• “Sign up now and a month of Viewabill Premium FREE!”

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Sample Pricing PageSOLO – 10 Matters

Starting at $9.99/month1-user

30-day trialUnlimited clients

Unlimited timekeepersBank-grade encryption

Flexible permission settingsNo contract

Viewabill Certified shieldAdditional users for $4.99 each/month

Additional 10 matters $7.99/monthUpgrade to Viewabill Premium for

$9.99/month

• Advertised price: $9.99/month

• Total price for 2-user premium plan sharing 30 matters: $42.95/month

• Current price for Solo plan: $41.66/month

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SourcesInside Legal, North American Firm Size Statisticshttp://insidelegal.typepad.com/files/2010/04/sizing-up-the-us-law-firm-market-pulling-back-the-covers-on-stats-rankings-projections-and-associations-that-matter-to-be.html

Entrepreneur, Small Business at a Glancehttp://www.entrepreneur.com/sbe/glance/index.html

SBA Office of Advocacy, FAQhttp://www.sba.gov/sites/default/files/FAQ_Sept_2012.pdf

Tech Crunch, The Complete Guide to Freemium Business Modelshttp://techcrunch.com/2011/09/04/complete-guide-freemium/

Business Insider, How Amazon’s Unconventional Business Model Changed Me From Hater To Customer For Lifehttp://www.businessinsider.com/why-amazon-is-so-hugely-successful-2012-12 28