twibo final presentation - lean launchpad, uc berkeley, spring 2013

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TWIBO FINAL PRESENTATION Leansanity Team, UC Berkeley, LLP 2013 otal Customer Interviews: 94

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Twibo--a Chinese social media marketing startup--final presentation on Steve Blank's Lean Launchpad class at UC Berkeley

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Page 1: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

TWIBO FINAL PRESENTATION

Leansanity Team, UC Berkeley, LLP 2013

Total Customer Interviews: 94

Page 2: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

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

Page 3: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Initial Idea: Providing Cutting-edge Weibo Online Marketing Solutions

Three segments:

Celebrities,Private Schools,Businesses

Self-service Tool:• Reposting• Analytics

Page 4: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Diagram of MVP

Page 5: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Initial Product Features

Page 6: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

What we did

Question But is there a large enough market?

Page 7: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Market Size

Page 8: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

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

Page 9: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

What We Learned

“Follow the money.” Brett Wilson, CEO of TubeMogul

Page 10: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

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

Page 11: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Key Activities

Page 12: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

What we did

Great!

Page 13: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

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

Page 14: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Canvas Version 3: Business Model Validation

Enterprise weibo management feevs

Enterprise subscription fee platform

Educating customer segments

Educatedvs

Non-educated

Page 15: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

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

Page 16: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

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

Page 17: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

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!

Page 18: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

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.

Page 19: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Is this a viable lifestyle business?

YesTwibo, LLC

One thousand1,000.00

Weibo Consulting StudentUniverse, Inc.

Page 20: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Final Canvas

Page 21: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Thank you!

4000

2500

Page 22: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Appendix

Page 23: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Video

http://youtu.be/31LvDYw6y3E

Page 24: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

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

Page 25: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Breakeven Analysis

Breakeven =

Breakeven = 960 paid months of basic service @

$2,000 per monthor

80 active paid customers per month

Page 26: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Week 1

Page 27: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Week 2

Page 28: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Week 3

Page 29: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Week 4

Page 30: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Week 5

Page 31: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Week 6

Page 32: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Week 7

Page 33: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Week 8

Page 34: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Week 9

Page 35: Twibo Final Presentation - Lean Launchpad, UC Berkeley, Spring 2013

Week 10