8/1/2013
a brief case for humanity & community
John Caplan
[email protected]
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8/1/2013
Relationships matter
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Humanity
Humanity
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Search = Vending Machine Retail • Brand becomes commodity • SEM / SEO arbitrage = no margin • Consumers may transact yet develop no loyalty
Good for Google & Amazon, bad for you (long-term)
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Back to Maslow
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Community = Happiness
Engagement = Loyalty & $$ for merchants
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Paradigm How itshift Works?
We connect merchants to buyers in the only marketplace powered by social connections
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The Discovery Process Connect
Engage
Transact
Network effects built around Trust
“If ebay & Facebook had a baby, it would look a lot like OpenSky” - Bloomberg
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Daily Our Social Marketplace Creates…
100+
1,000+
10,000+
New Merchants
New Members
New Friend Connections
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The Power of the Network Effect Total Visits per # of Friends
Total Spend per # of Friends
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$146
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$101 $73
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0
1-10 Avg. Visits Since Jan-13
11+
0
1-10
11+
Spend Since Jan-13
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Network Effects Driving… Time on Site 4:56 4:11 3:43 3:09 2:28
2:13
Q1
Q2 2012
July 2013
Network Effects Driving… Cross Category Shopping
80% Cross Category
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Active Merchants Driving Conversion Buy rate of active members (June) 7.4%
2.3x 3.2%
1+ active merchant connections
0 active merchant connections
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Most economic theory could be revolutionized by aligning with higher values
Most corporate behavior actually focuses on the most base
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Forbes Most Promising Fast Company Most Innovative Crain’s NY Best Places to Work
John Caplan
[email protected] @johncaplan
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