9 Parts of Business Model: Here is the what we thought, assumed, and we're going to test it !
Customer
Segments
●
Hypothesis
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The queen of the internet. The one who has
time, money, and motive. The one who is on the lookout for giveaways and
discounts. The one who blogs. The one who shares hip, new products on Facebook,
Twitter, and email. The Internet-savvy mom. Why her? Why not? To use the
language of the book, this would be considered a niche market.
○
Merchants who targets mom.
●
Test
○
Because our target doesn't have a lot of time,
focus groups or interviews are out of the question. We are thinking the best
way to poll this market is to do a quick Google survey.
○
Scale? Go to this link [how it works page],
and tell us how excited you are about website?
■5 point scale
●
Pass/Fail
○
We pass if out target segment rates the site
higher than all other demographic groups.
Value
Proposition
●
Hypothesis
○
With online giveaways growing in population,
HappyFreebie captures them from hip, new products, marinates them with
discounts, and serves them to an ever growing and hungry market. Are you
hungry?
○
In the age of viral marketing, HappyFreebie
offers merchants a low-cost, results based, data driven, social enabling marketing channel for their new and hip
products.
●
Test
○
Ask moms how valuable they feel the connection
of daily deals to giveaways and hip, new products. One example would be asking
them, "how much more often would you visit HappyFreebie vs. a daily deal
site?" Another example would be to ask industry experts their opinions.
○
Ask merchants how valuable they feel the data
we offer is. Also, how much value they put on the social aspects of
HappyFreebie. A specific question could be, "how much more likely would
you be to feature a giveaway, because of the increased data and social
interaction, rather than featuring a deal on a daily deal site?"
●
Pass/Fail
○
If users would visit us more than a daily deal
site we pass.
○
If merchants would be more likely to feature a
giveaway, then we pass.
Channels
●
Hypothesis
○
Listed in order of importance:
■Email
■Facebook
■Mobile
■Website
●
Test
○
Ask subscribers what would be your preferred
way of finding out about new products, entering to win giveaways, and getting
discounts.
○
Ask merchants which of the above channels you
would feel comfortable using to sign up for a giveaway.
●
Pass/Fail
○
Determine which one wins.
Customer
Relationships
●
Hypothesis
○
Our acquisition strategy is to spread the word
directly to mom blogs and Facebook pages. Maintaining customers will be easy
and can be accomplished through automated methods. And although we have not yet
established the Facebook channel, doing so will help us keep customer
relationships strong by engendering a community around giveaways and discounts.
○
Acquiring merchants will be a little more
difficult and will require a small sales force to reach out to products that
resonate with the Internet-savvy mom.
●
Test
○
Get some ads on blogs and mentions on mom
Facebook pages and see what percentage of the traffic sign up.
○
Call some merchants and see how many contacts
it takes to get a paying customer.
●
Pass/Fail
○
If 10% of traffic signs up for a free account.
○
If we can get 1 paying customer per 20
contacts.
Revenue
Streams
●
Hypothesis
○
New product giveaways/discounts generate the
majority of revenue. Because we don't have any sales, we don't exactly know
what customers are really willing to pay, but the price we charge is $50 each. In the near future, giveaway prices
will vary depending on the day. For instance, days leading up to Christmas will
be more expensive than a day mid January.
○
Sponsor ads are our second source of revenue.
Again, we don't have any paying customers, but we currently charge $50 per
month.
○
Our hypothesis is that the price should vary
by the amount of subscribers and traffic we have.
●
Test
○
Survey merchants and ask them their
willingness to pay.
●
Pass/Fail
○
We'll find the optimal price through pricing
analysis
Key
Resources
●
Hypothesis
○
Our business model sets us apart from all the
competition because of our unique combination of giveaways and discounts.
○
When mom subscribes and interacts with the
giveaways, we populate a rich database that will give us insights that are
valuable for merchants.
○
The fact that we are a startup. Our big
competitors are too big to see the opportunity, and our startup competitors, if
they exist, will be competing in a space that is old news after we're done.
●
Test
○
Do an industry competitive analysis and
analyze all threats
●
Pass/Fail
○
We pass if we cannot find a competitor that
offers the same key resources.
Key
Activities
●
Hypothesis
○
Software development
■Easy-to-use apps across multiple platforms
○
Maintain platform
■Safe platform for transactions to occur
○
Online marketing
○
Sales
●
Test
○
Research Groupon and understand the key
aspects of their business
●
Pass/Fail
○
If Groupon's key activities align with the
ones we are thinking, then we pass.
Key
Partnerships
●
Hypothesis
○
Mom bloggers/Facebook page administrators
○
Big ecommerce merchants that have multiple
products they could feature
○
Big consumer product companies that target mom
●
Test
○
Contact them and measure their interest in
getting involved
●
Pass/Fail
○
If we get favorable responses, the we pass
Cost
Structure
●
Hypothesis
○
We lean toward a value-driven model. We are
focused on providing the greatest amount of value for the merchants.
○
Fixed: hosting, domain, SSL certificate,
McAfee Hack Safe, office, supplies, computers
○
Variable: hosting, customer service, sales
people, tech support, IT
●
Test
○
Contact a local entrepreneur that runs a
consumer facing website and figure out if we are missing something.
●
Pass/Fail
○
Based on the feedback, we will modify our
plans accordingly.
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