BUSINESS PLAN Blogmutt
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- Cordelia Owens
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1 Blogmutt Business Plan - Public Version - Page 1 BUSINESS PLAN Blogmutt SOLVE A COMMON PROBLEM IN A UNIQUE WAY That s what we do at Blogmutt. The problem is simple: There are something like 10 million business websites, and nearly all of them are starved for fresh, original content. What makes us unique is that we sell a crowdsourced subscription service that businesses come to rely on for original blog posts every single week. Also unique is our crowd of writers all blog posts come from freelance writers, every one of them writing on spec. While our approach is simple, we have a sophisticated understanding of our customers and writers. Also, our team has track record of building winning companies. We are ready to get big, fast. Will you join us?
2 Blogmutt Business Plan - Public Version - Page 2 WHAT IS THE BIG PICTURE? is defining the market for crowdsourced blog content. Before 99designs, people didn t know there was a different way to get logos done. We can learn the lessons, define this new market, and dominate it. The thing is... businesses need blog content more than logos, and they need it all the time. Now 99designs has hosted 100,000 design contests. That market is now defined.
3 Blogmutt Business Plan - Public Version - Page 3 HOW DOES BLOGMUTT WORK? Customers Writers Our customers: Businesses Online - mobile apps - services - education Local - contractors - real estate - retail Etc. $79/ month Platform built for Customers - enter keywords - pick posts Writers - write whenever - get points and pay 40% of sales Our writers fall into two groups: New writers - want experience - many work from home Experienced - fair pay for flexible writing jobs We re a little like for blog content. We are the one place everyone goes.
4 Blogmutt Business Plan - Public Version - Page 4 WHAT HAVE WE LEARNED AT BLOGMUTT? Six months ago, this was our checklist of questions. Do consumers recognize that they have the problem you are trying to solve? If there was a solution, would they buy it? Would they buy it from us? Can we build a solution for that problem? (See Page 9 for more on those first four questions.) Will writers be willing to write? Will writers create quality posts? Does a point system help focus and motivate writers? Will the writers support each other on a private group message board? Will writers find us organically? Will customers find us organically? Can we get mainstream press coverage? Will customers enjoy using our system? Will agencies use Blogmutt for their clients? Will customers be OK with not knowing the names of the writers? Will writers enjoy no customer contact, just writing? Can we attract a world-class lead investor? Can we attract a full round of investors with a convertible note? Will Blogmutt be able to grow in an interesting way, reaching a good chunk of our target market?
5 Blogmutt Business Plan - Public Version - Page 5 WILL WRITERS WRITE FOR BLOGMUTT? This Blogmutt thing was truly one of the best things to happen to me in Happy new year everyone, and here's to a fun and successful 2012! Yes, and they ll enjoy it. The first quote is an unprompted message from our second-most productive writer on our private message board for writers. The second is a response from the most productive writer. I'll say it's sure been a high point of my Thanks a million, you guys. It's great to be a part of what we're doing here.
6 Blogmutt Business Plan - Public Version - Page 6 DO THE CUSTOMERS LIKE SUBSCRIBING TO BLOGMUTT? Again... Yes "Blogmutt is such a huge relief. Before my blog just stressed me out, and now I really enjoy getting to pick a post each week." 98.1% The quote is a testimonial a customer gave us. The number reflects perhaps the most important testimonial of all: Since we started last August, we ve had a 98.1 percent customer retention rate month-over-month. This means our Lifetime Value of a Customer is off the charts compared to other online subscription providers. In a world in which the average online subscription is just a bit longer than the free-trial period, that s remarkable. We have no free trial and remarkably low churn. That makes for a fantastic long-term business opportunity.
7 Blogmutt Business Plan - Public Version - Page 7 WHAT DO THE CUSTOMERS DO? Sample customer industries/specialties include: Voice over IP consultant Stock Photography Local Antique Store Cloud Computing Security iphone Aps Health Care Billing Local Deck/Patio Builder Online Sports Tools Mobile Computing Pilates Studio Online Specialty Clothing Supply Chain Consulting Vegetarian Marshmallows Recording Mastering Service Advocacy/Non Profit Technical Consulting Specialty Insurance Products Bookkeepers/Accountants Home Care Providers API Developers Financial Planners Outdoor Buildings Video Testimonial Tools Hot Tub/Spa Supplies
8 Blogmutt Business Plan - Public Version - Page 8 WHERE DO THE CUSTOMERS COME FROM?
9 Lean Startup Questions: 1. Do consumers recognize that they have the problem you are trying to solve? Blogmutt Business Plan - Public Version - Page 9 3. Would they buy it from us? WE ASKED THOSE QUESTIONS BEGINNING IN AUGUST, THE ANSWER TO EACH ONE? YES 2. If there was a solution, would they buy it? 4. Can we build a solution for that problem? Now, one question remains: HOW DO WE GET BIG, FAST?
10 Blogmutt Business Plan - Public Version - Page 10 HOW BIG IS THE MARKET FOR BLOGMUTT? Something like 10 million businesses Where do we get that number? Well, it s... About 7% of the 156 million blogs on the web Half of the 20 million companies that serve English speakers All of the 78% of firms spending more on social media
11 Blogmutt Business Plan - Public Version - Page 11 WHO S ON THE BLOGMUTT TEAM? Wade Green, the tech leader at Blogmutt, has been a fixture in the tech scene in Boulder for years. He started out as a tech puppy working for Accenture, and moved on to various technical consulting roles before joining a startup in Wade later worked with Scott on MyTrafficNews, LegislativeDatabase, with a stint at DoubleClick in-between. Scott Yates attends to the business side of Blogmutt, and has done so at two other companies. The first time was with MyTrafficNews, a company that sold to Traffic.com in He then worked on LegislativeDatabase and returned a positive investment to the initial investors. Before starting his startup life, Scott was an award-winning writer in New York and Colorado, and continues to write occasionally on his blog at Sco.tt. Key point: This team of a hacker and a hustler has had two wins, and is now hard at work on the third, having learned all the lessons from the first two.
12 Blogmutt Business Plan - Public Version - Page 12 HOW CAN I LEARN MORE ABOUT BLOGMUTT? Be in touch... Scott Yates CEO, Cofounder scott@blogmutt.com facebook.com/blogmutt angel.co/blogmutt Accredited investors, please be in touch for a full deck with much more.
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