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Building A C2C Internet Business

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					    Building A C2C Internet
           Business

           March 21, 2006


        Jessica Hardwick
         CEO & Founder
         SwapThing, Inc.




Know What You Do
What Problem Do You Solve?
Internet Enabled Or Internet
Only




                               1
Know How You Solve the Problem

Is it better, faster or cheaper?
Disruptive Technology




What We Do, Value Proposition

                             fee: $1 - $20




                                       Hosted by SwapThing


 Solves the “double coincidence of wants” problem
 Two-way flexibility in offering combination of items,
 cash and services
 Private, noncompetitive negotiations
 Ability to barter within established circles of trust




                                                             2
SwapThing
Three Phase Company Strategy
1. 2005 Market Exploration
     - Analyze customers’ behavior
     -      Track and analyze matrices
        Customer acquisition cost
        Average transaction fee
        Conversion rate
        Projected user lifetime value

     - Launch website
     - Understand competition
     - Explore alliances
     - Stay within $150K budget

2. 2006 Generate Revenue
3. 2007 Break Even




Brand
  Memorable, Not Generic
  Instantly Identifiable
  Repeatable
  .com




                                         3
Development
Build it first
Outsourcing
Navigation
Detailed Specs
Ugly works




Freeware




                 4
Finances
Product 1st
Stretch every penny
Partner with the right bank




Legal
Partner with a believer
Protect the company
Protect the IP




                              5
Get Big Slowly

 Get As Big As You Can On As
 Little As Possible
 Build Slowly
 Build Loyalty

 Prove Organic Growth




Stick To Your Model
 Start As You Mean To Continue
 The First Dollar Of Revenue Is The
 Hardest
 Be Open To New Models




                                      6
                       Easy to Understand
                       Quick Registration
                       Free to List




Marketing

Free Customers
Break out of the box
Search Engines
AdWords
Give it away
Contests




                                            7
Strategic Alliances
Should strive to…
 Strengthen
 Add Value
 Provide Growth
 Be Mutually Beneficial




Customer Communications
 Support
 Multiple points of contact
 Multiple paths of
 communications
 Surveys




                              8
The Competition
You have competition
Substitutes
Know them well




Environmental Scanning
Who Visits
Links
Mentions
Stay ahead of the curve




                          9
Using




SwapThing Three Year Strategy
 2005 Market Exploration
 2006 Generate Revenue
    Build company (hire management, funding)
    Optimize business model (% based cash sales,
  service subscription)
    Ramp users with min. advertising (SwapCircles,
  Alliances, RSS feeds, PR)
    Build brand (Introduce Swappy)
    Develop new technologies (barriers to entry,
  increase transaction rate)
 2007 Break Even




                                                     10
Public Relations

Be press worthy
Personal stories
Unique angles




The Three C’s Of The Internet
 Content
 Community
 Commerce
 Combine To Create A Network
 Effect




                                11
Content
Unique
Useful
Updated




          Home Page
                       Content
                      Categories




                                   12
            User Profile




Commerce
What is your main model?
Add on services
AdSense
Banners




                           13
    Community
      How do customers stay
      connected?
      Social Networking
      Forums
      Blogs
      Interactivity




    Swap Circles
•Trade inside/outside SwapCircle                                                    Comic Collectors
• The next layer in Social Networking                 SDForum

• Earn portion of transaction fee
                                                                            49’ers Fan Club
• Early adaptors                        Sub-
                                                         Sub-
                                                         Circle
                                        Circle
    • Cheap/Frugal/Bargain                 Sub-
                                                      Sub-
                                                      Circle      Sub-
                                           Circle
    • Collectors                                       Sub-
                                                                  Circle                    Network Marketing
                                             Sub-                                            Avon, Vitamins
    • In-kind Traders                        Circle    Circle

                                             Little League
    • Young Parents
    • Green/Recycle
    • Empty Nesters                                                        Mother’s Group


                                                                                       Stanford




                                                                                                                14
Build a Community
User Forums




              Public
           SwapCircle
            Invitation




                         15
  Thank You




Any Questions?




                 16

				
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Description: Is it better, faster or cheaperY Disruptive Technology. Know How You ... Solves the "double coincidence of wants" problem. Two-way flexibility in offering ...