Post on 22-Apr-2015
description
transcript
SMContact spendLO:Corey Leff, Founder & CEOCorey@spendLO.com(561) 894-8976
What is spendLO?SpendLO is an online marketplace where consumers name their price on local services and are matched with certified professionals who compete to earn their business. Think Priceline meets Angie's List.
QUICK BITESFounded: 05.23.2011
Public Beta Launch: 06.08.2012
Official Launch: June 2013
Industry: e-Commerce
Sub-Industry: Consumer Services
Stage: Generating Revenue
Employees: 4
www.spendLO.com
LEADERSHIP
Corey LeffFounder & CEOFounded early cloud storage startup Document Nation in 2004
Kristin DelaneyManaging PartnerFormer Sales Vice President,MetLife Investors
Elise HahnMarketing DirectorFormer Project Manager to several of Internet Retailer’s Top 500
ADVISORY
Ari SteinbergEarly Facebook software engineer and the creator of Facebook’s News Feed and platform
Alex EnchinCo-founder of daily deal company Wag Jag, sold to TorStar Corporation in 2010
David LeVineCEO of early ERP provider Advent Business Systems, sold to U.S. Bank in 2005
Consumer ChallengeIt is difficult to find and hire the right service professional. The existing landscape lacks a solution that simultaneously offers user-driven pricing and peer reviews, results in time savings, maintains the user’s privacy and requires service provider certification.
Service Professional ChallengeTraditional customer acquisition techniques such as purchasing leads and digital advertising space possess capital risk, often requiring a significant initial out of pocket investment. A 2011 Opus Research-MerchantCircle of 8,456 businesses found that paying a percentage of the sale is the most popular means of acquisition, as paying for customers rather than opportunities is a sustainable growth model for small businesses.
Business ModelSpendLO‘s business model addresses both of these challenges. Consumers and Pros may use the site for FREE. This includes: creating profiles, registering a business, advertisting To-Dos, bidding on To-Dos, reviewing Pros’ bids and credentials, and more. If a Consumer decides to move forward with a Pro, spendLO collects 10% of the accepted bid price.
How It WorksUsers visit our website (or mobile app starting in June), describe their “To-Do,” and name the price they’re willing to pay. We’ll alert our network of licensed and insured Pros who will compete for their business. SpendLO eliminates the stress of researching and hiring service providers, and saves our consumers time and money. Not only do our users get the best price while remaining safe and private – IT’S ALSO FREE!
STATISTICS TO DATE• 0.90 To-Dos posted per consumer
• $498.50 average cost per To-Do
SIMILAR COMPETITOR STATS:
• 50% of users post a 2nd To-Do within 30 days
• 50% of To-Dos are completed, generating full revenue
Revenue Projections
Mass Distribution & Customer AcquisitionSpendLO's distribution strategy is based on a recent success story. Advisory Board member Alex Enchin cultivated a successful partnership between Canadian daily-deal leader Wag Jag and the Toronto Star. The result, Wag Jag grew to 1.5M users within 18 months leading to the purchase of the company by parent company Torstar Corporation. SpendLO has agreed to a similar revenue sharing agreement with WPTV, a Scripps-owned NBC affiliate and Florida’s #1 television station. The relationship is predicated on full scale multi-media distribution through several local television and web properties, followed by replication and expansion into an additional 5 Scripps television markets nationwide.
An additional distribution arm will include Palm Beach County’s largest Real Estate company, Lang Realty. Lang’s 425+ agents will serve as an extension of the spendLO sales force, utilizing spendLO for property improvements and to introduce new residents to cost savings and business building opportunities. Lang also brings an extensive network of prequalified service professionals to the partnership.
SouthernCA 2.0mm
Houston975K
Detroit800K
DC/N Virginia
600K
Boston500K
Minneapolis500K
Northern CA
500K
Baltimore500K
Denver475K
S Florida425K
CentralJersey400K
Seattle350K
MetroNY
675K
Philly/S Jersey
700K
North Jersey904K Long
Island1.6mm
Atlanta300K
Phoenix300K
St. Louis250K
Chicago1.7mm
SLC200K
Dallas/Fort Worth
800K
FL Gulf Coast 175K
Indian-apolis 150K
Charlotte150K
OUR TECHNOLOGY
Forthcoming software deployment integrates a customer rewards program designed to incentivize users, promote virality, and enhance social engagement. Phased rollout scheduled between June 1, 2013 and June 30, 2013 also includes deployment of native iOS and Android mobile applications and a newly redesigned, fully responsive website.
spendLO PROs
SpendLO’s requirements include but are not limited to: Pros adhere to regulations stipulated by the state, county, and municipalities in which they transact business; Pros only bid on services for which they are expressly licensed to perform; Pros carry liability insurance in excess of $1 Million; and Pros carry worker’s compensation insurance.
THE LOCAL SERVICES VERTICALANGIE’S LIST
• Offers users access to consumer reviews on a monthly subscription basis
HOME ADVISOR
• Offers multiple quotes to consumers by selling leads to numerous vendors, who look to gain a return on their investment by relentlessly soliciting the prospective consumers
RED BEACON
• Solicits bids from local vendors in limited segments of the home service market, most closely resembles the spendLO model
Target Markets
Count of households where the following criteria are satified:• Median household income exceeds $60k• Owner occupancy rates exceed 70%• Households per sq. mile exceed 2k
Targeted Entry ServicesHome & Garden
• Roofing
• Windows
• Painting
• Bathroom Remodeling
• Kitchen Cabinets & Counters
• Landscaping
Cleaning & Cleanout
• Pressure Washing
• Carpet Cleaning
• Maid Services
Health & Beauty
• MediSpa Services
• Orthodontics
Professional Services
• Website Design
• Attorneys
• Property Managers
Moving & Transportation
• Pack & Move
• Auto Shipping