15th
BUSINESS MODEL : in brief questions.
How do you intend to make money and grow the business?
There are two ways to capture value.
1. From online-advertising
2. Premium accounts for clients who want to raise premium events
The more people in our services means larger market for event-raisers. Our business will expand or shrink depends on how popular our services is to the major groups in social-network.
Is this an original business model or is it similar to another business?
Yes, it’s an original with some similarities.
As stated before that currently there is no social network that really encourage user to keep their promise. We found this to be a dazzling opportunity to put our services to distinction. To rid the system from undisciplined users, we implemented our business model base on the unique Karma system to differentiate good users from bad users.
What products or services would you develop to seize this opportunity?
1. Karma system.
2. Dynamic calendar
How much will people pay for your solution?
It depends on the size of our users. The bigger the size the more variation and with it comes new emerging market segments which makes the paying company willing to pay more.
How will you grow revenues and profits over time?
Same answer. It depends on the size of our users.
Users size is the core value of social networking business. The only way to foster our revenues and grow profits is to gain more users. As the users expand, the new kind of services appear, the more value the business can capture.
What are your principle expenses?
Public relation, marketing research and development cost.
We PR new features then research the market needs then we develop new features to satisfy our users’ demands and then we PR what we have just made. This process goes in loop again and again until new technology breakthrough shift the way the market behave.
How can they be managed?
1. Always looking for new market opportunity to expand user size.
2. Be proactive to change and alter the services to protect event-raisers satisfactory.
What size of investments are required to pursue the opportunity to profitability and how would you stage them?
10 million dollars that can be divided into three major stages
I. The first stage is in-house development, early production of the service is developed in this stage. Marketing research is operated to get the glimpse of the next trend. No public relation is performed. The expense is minimal.
II. Second stage is market introduction, the service will be introduced through free and low-cost channel. Most of the core features are finished but lacks miscellaneous functions. The expense is above minimal.
III. Last stage is maturing the image. We will enter this stage only after the product started to hit the market and both the business and economic situation is stable and supportive. Public relation in this stage is performed through every media possible to create talk of the town. This should be effective enough to wrest the old market share from competitors and grab new users at the same time. The expense is maximum.
