Presentation Deck for DeServe

Agenda
What is DeServe ?
Product/Service
Business Model
Profit Model
Why will it work ?
Business Environment Analysis
Competitor Analysis
How will it work ?
Management Team
Operation Plan
Marketing Strategy
Financial Projection
Everything you deserve.

WHAT IS IT?

DeServe is:
An engaging experience for people
to make donation to charities.
A smart advertising platform for Brands
to leverage Causing Marketing.
An efficient fountain for nonprofit organizations
to fundraise online.
To be engaging:
Gamification, Loyalty Program, CRM,
Authentic Content
To be smart:
Natural Advertising, Relevant Sponsorship
To be efficient:
One-stop Crowdfunding Consulting

Solved Problems
For Nonprofit
Organizations
For Donors
For Corporations
• Every $100 gained, $96 in losses
• Every 100 donors gained 105 in lost donors
• Only 30% of donors are thanked immediately.
• 21% of donors were never thanked.
• Low ROI from Cause Marketing
• Lack of proper way to advertise

Business Model
• Matchmaking Model
• Advertising Model
• Subscription Model
Brands
Donate
millions for
bare
recognition
Donors
Not engaged
and thanked
enough
Nonprofit
Organizations
Fundraise in
outdated ways

Profit Model
Service & Consulting Fee
• 5% of total donation. Service
includes content production,
transactional, and Marketing &
Management Consulting.
Natural Advertising
• PPC Model: charge
advertisers/sponsors based on
impressions, clicks, and
conversions.
• Sponsorship Fee
Management
Service
Advertising 52%
36%
Sponsorship
12%

WEBSITE MOCKUP

WHY WILL IT WORK ?

Environmental Analysis
Not-for-profit Sector
• 2.3 million nonprofit organization in the United States
• $1.51 trillion in revenue
• 24% of growth from 2000 to 2010
Individual Donation to Charities
• 88% of households in U.S. give to charity
• Average Annual Donation Size Per Household: $2,231
with the median of $870.
• Total Personal Donation in 2012: $217.79 billion(73%)
• $603 contribution per person
Corporate Philanthropy
• Total of $18.15 billion corporate donation
• Averagely 1% of pretax profits
• 9.9% of growth in 2012
Source: The Nonprofit Almanac 2012, Katie L. Roeger, Amy S. Blackwood, Sarah L. Pettijohn.
http://www.nptrust.org/philanthropic-resources/charitable-giving-statistics/
http://www.philanthropy.iupui.edu/news/article/giving-usa-2013

Competitor Analysis
Engagement
Points of Parity:
• Crowdfunding Platform
• Peer to Peer Fundraising
• Gamification
• Reward System
Efficiency
Points of Differentiation:
• Multiple Revenue Stream
• Authentic Content
• Natural Advertising
• Sponsored Reward System

SWOT Analysis
Strength
• Unique Positioning
• Innovative Solution to multiple needs
• Social Influence
• Sustainability
Weakness
• Lack of funding
• Lack of awareness
Opportunity
• The Growth of Nonprofit
Sector
• High Demand
• Internet of Things
Threat
• New Entrants/ Competition
• Economic Stability
• Potential Regulation

HOW WILL IT WORK ?

Management Team
CEO*
CMO*
Director of
Strategic
Partnership*
Account
Manager
Account
Manager
Director of
Marketing*
Acquisition
Manager
Retention
Manager
Director of
Creative*
Video Producer
Graphic
Designer
Copywriter
CFO*
Transaction
Manager*
COO/Head of
HR*
Customer
Service*
CTO*
Front End
Developer*
Back End
Developer*
Total # of Employees
1st Year: 9
2nd Year: 13
3rd Year: 20
Xiaoqing Zhou
CEO/CMO
Shiming He
CFO
Sullivan Zelin Liu
CTO

Operation Plan
• Web Application Development
• Transaction Handling
• Marketing, Sales & Production
• Partners
• Nonprofits: Human Services and Education
• Brands: Electronics,CPGs, and Clothes
• Customers
• Major cities in Eastern and Western Coasts,
Age from 25-40,Household Income: $80,000+

$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$-
Three-year Projected P&L
$(835,459) $(74,833)
$3,242,593
$(5,000,000)
2014 2015 2016
Net Profit
Cost
Total Revenue
125
6,250
12,500
10 500 1,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
-
2014 2015 2016
Thousands
Growth in Users Base andWeb
Traffic
# of Users
Traffic to the website
Breakeven: 61,496 users
Starting-up Cost: $ 1 million

Revenue Model Transformation
Management
Service Revenue
60%
Advertising
Revenue
6%
Sponsorship
Revenue
34%
Management
Service
Revenue
85%
Advertising
Revenue
11%
Sponsorship
Revenue
4%
Management
Service
Revenue
Sponsorship
Revenue
2%
Advertising 38%
Revenue
60%
2014 2015 2016

Marketing Strategy
Objectives:
• To acquire 10,000 new users in 2014, and reach the
conversion rate of 8%.
Target Audience Insights
• Online giving happens largely between 9am and 5pm on
weekdays.
• Go official websites for donation.
• A third of donation in December,22% in last two days.
• Preferred media:website(32%), email(28%), Facebook(8%).
• Donate because of the belief in causes.

Marketing Strategy
Strategy
• Content & Contextual Marketing
• Digital Marketing
• Viral Marketing
• Direct Marketing
• Sponsorship
Source: http://www.charitynavigator.org/index.cfm?bay=content.view&cpid=1360#.U2lHQq1dXjO
• Events
• SEO/SEM
• Email/Mail
• Online Advertising
• Social Media
• OOH
• Print
• TV
Tactics/Media

Creative
Sample
WHERE
YOUR D ONATION
TRAVELS TO
SHOU LD N ’T BE A
MYSTERY.
You deserve to know more!
.com

Creative
Sample

Summary
DeServe will be the ULTIMATE
destination,
for people to donate online,for Brands to
leverage Causing Marketing, and for
nonprofit organizations to fundraise
efficiently.

APPENDIX

Projected P&L
Assumptions:
User Conversion Rate: 8%
Variable Overhead: 10%
Fixed Overhead: 12%
Acquisition Fee/User: $25
Monetary Discount: 10%/year
ADS: -20%/Year
3-y Projected P&L Y1 Y2 Y3
Total Revenue $148,875 $3,602,083 $13,690,278
Management Service Revenue $89,500 $2,983,333 $3,977,778
Advertising Revenue $9,375 $468,750 $9,375,000
Sponsorship Revenue $50,000 $150,000 $337,500
# of Users 10,000 500,000 1,000,000
Ave. Donation Size $179 $119 $80
Total Donation $1,790,000 $59,666,667 $79,555,556
Total # of Projects 50 75 113
Traffic(Visits/Month) 1,042 52,083 1,041,667
COGS $50,000 $75,000 $112,500
R&D/ Platform Development $15,000 $15,000 $10,000
Personnel $495,000 $715,000 $1,100,000
Marketing and Advertising $250,000 $2,250,000 $5,000,000
Office Rental $96,000 $120,000 $144,000
Variable Overhead $42,130 $552,176 $3,413,930
Fixed Overhead $33,704 $441,741 $2,731,144
Net Profit $(832,959) $(566,834) $1,178,704
ROI $(0.85) $(0.14) $0.09

Breakeven Analysis
Projected P&L Y1 Breakeven Analysis(# of Users) Breakeven Analysis (ADS)
Total Revenue $249,500 $1,161,538.46 $1,161,538
Management Service Revenue $87,000 $535,014 $1,017,788
Advertising Revenue $112,500 $576,524 $93,750
Sponsorship Revenue $50,000 $50,000 $50,000
# of Users 10,000 61,496 10,000
Ave. Donation Size $174 $174 $2,036
Total Donation $1,740,000 $10,700,287 $20,355,769
Total # of Projects 50 50 50
# of Unique Visits 12,500 768,699 125,000
COGS $50,000 $50,000 $50,000
Gross Magin $199,500 $1,111,538 $1,111,538
R&D/ Platform Development $15,000 $15,000 $15,000
Personnel $495,000 $495,000 $495,000
Marketing and Advertising $250,000 $250,000 $250,000
Office Rental $96,000 $96,000 $96,000
Variable Overhead $42,130 $116,154 $116,154
Fixed Overhead $33,704 $139,385 $139,385
Net Profit $(732,334) $- $-

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