2. Overview
The Problem
The Product and Business Model
The Market and Competition
Strategy
Business Drivers and Risk
Customer Acquisition Costs
Management
Revenue Model
Financials
Funding Requirements
3. The Consumer Problem
A Problem For Sports Fans
Sports fans attend games; purchase sports merchandise,
and root for their favorite teams, athletes, and coaches
without being properly recognized or rewarded.
FanRanker’s Solution
Reward Sports Fans - Fans will be rewarded with prizes,
discounts, and deals for being active in the real world and
on the website.
Recognize Sports Fans - The top sports fans and best
content will be spotlighted on the website and within
FanRanker literature.
4. The Merchant Problem
A Problem For Sports Merchants
Sports merchants do not have access to a platform that
focuses on sports and that will provide them with the
specific interests of their customers in real time.
FanRanker’s Solution
Connect With Customers – Allow sports merchants to get
to know their current customers and reach new ones.
Offer Deals That Matter – Help merchants provide deals
on merchandise for sports fans’ favorite team, athlete, or
coach.
Reward The Best Customers – Fans that are recognized
and rewarded will often provide repeat business.
5. The Product Features
FanRanker Website
1. Post content and interact with other sports fans.
2. Get rewarded for being active on the site.
3. Compete for prizes.
4. Unlock trophies to gain status on FanRanker.
FanRanker App
1. Check-in as a fan of ones favorite team, athlete, or
coach.
2. Get deals from merchants that matter to sports fans
3. Get rewarded on FanRanker for being active in the
real world.
6. The Product Functionality
Free membership and app
download.
The site and app will be inter-
linked so fans may combine their
real world activity with the
website.
Virtual check-in to get deals from
merchants who have an online
presence.
Facebook and Twitter integration
for the site/app to gain exposure.
9. The Product Reward System
The “Commish” Trophy
Get active with merchant check-ins.
Unlocking the “Commish” trophy means one
continuously uses merchant discount/deals.
The “Commish” trophy is the most valuable on
FanRanker and will boost ones ranking on the
FanRanker leader board.
Other Trophies
Improve ones social status on FanRanker and earn
bragging rights when trophies are unlocked for
various real world activity.
10. The Product Reward System (Cont.)
Sports Fan Takes
Post ones take on a sports event, story, or person.
The best sports takes will rise to the top.
Unlock trophies and earn bragging rights if ones
sports take rises to the top.
Boost rankings on the FanRanker leader board.
11. The Product Reward System (Cont.)
FanRanker T-Shirt
Deal the highest on
Rank
the FanRanker leader
board.
Get 10% of monthly
sales for FanRanker
T-Shirts or ($300
monthly).
Earn bragging rights.
12. Business Model
Patent pending check-in technology
Unique sports-themed social networking site
Rewards users based on frequency and quality of
use
Merchant check-in (physical and virtual)
Climb the ranks for submitting good posts on the website
Earn bragging rights and prizes
Work directly with sports merchants
Allows merchants to target deals/coupons
Increase customer awareness and relations
Increase sales
13. The Market
According to Plunkett 73% of teens and young
Research, “annual adults are a member of at
company spending for least one social
sports advertising is over networking site
$28 billion annually.” Top Social network sites
Within the four major visits per month, for 2011:
sports, the average game Facebook: 8,695,560,138
attendance: Twitter: 1,399,127,428
NHL- 17,070 Linkedin: 79,000,000
NBA- 17,149 Unique visitors to niche
NFL- 66,957 social networking sites
MLB- 30,135 grew by 48.1% in 2011
The U.S sporting Its estimated $1.5 billion
equipment sales retail in will be spent on social
the range of $40 billion networking sites in 2012
annually
The estimated size of the
U.S Sports Industry is
over $620 billion
14. Sports Generated Revenue – Nearly Recession Proof
Estimated Revenue from Regular Season Ticketing (%)
2006 2007 2008 2009 2010 Regular season
NFL 16.9 16.6 16.7 16.0 16.6 revenue in most sports
% % % % % has only modestly
MLB 34.6 34.5 36.5 35.7 35.2 declined even as the
% % % % % average attendance
NBA 30.4 30.3 28.8 28.4 27.1 slightly declined.
% % % % %
FanRanker will exist in
NHL 40.2 42.3 38.7 39.5 39.6 a niche market that is
Regular Season Attendance (M)
% % % % %
2006 2007 2008 2009 2010 steady and proven.
NFL 17.6 17.6 17.5 17.3 17.1
MLB 76.3 79.6 79.0 73.6 73.2
NBA 21.6 21.8 21.4 21.5 21.1
NHL 20.9 20.9 21.3 21.5 21.0
Source: WR Hambrecht + Co, E
15. Attendance At Games – Nearly Recession Proof
Regular Season Attendance (M)
2006 2007 2008 2009 2010 Regular season
NFL 17.6 17.6 17.5 17.3 17.1 attendance in most
MLB 76.3 79.6 79.0 73.6 73.2 sports has only
NBA 21.6 21.8 21.4 21.5 21.1 modestly declined
NHL 20.9 20.9 21.3 21.5 21.0 even as the average
ticket price has steadily
risen.
Average Ticket Price (USD) FanRanker can help
2006 2007 2008 2009 2010
incentivize more ticket
NFL $62.3 $67.1 $72.2 $73.3 $76.4 sales as prices rise.
8 1 0 4 7
MLB $22.2 $22.7 $25.4 $26.6 $26.7
1 7 3 4 4
NBA $46.9 $48.8 $49.4 $48.9 $47.6
9 3 7 0 6
NHL $43.1 $48.7 $49.6 $51.2 $54.2 Source: WR Hambrecht + Co, E
3 2 6 7 5
16. Customer Characteristics
Typical Customer
Female aged 18-24
Receptive to online advertising and shopping
Males aged 18-35
75% more likely than females aged 18-35 to check-in to
physical locations
Owns a Smartphone, watches live sports, purchases
sporting gear, and sports tickets
Studies show that nearly 50% of sports fans who
checked in to a physical location via their phone
were ages 25-34
Individuals in the age range of 16-35 average $50
in weekly spending for purchases over the
Internet
17. Freethefan – This site focuses on sports talk,
and allows members to download their own
videos. It covers all sports and membership
is free.
Faniq – This site focuses on sports statistics
in an effort to educate current fans, and
make fans out of novices. The site allows
for the submission of articles and links to
many sports blogs. Membership is free.
18. Foursquare – This is a social network that
allows members to check in to various
establishments in order to receive
discounts/freebies. However, the site does not
specialize in sports merchants as FanRanker
will.
FanFeedr – This site focuses on sports
news only which is not a major part of the
FanRanker business model.
19. ESPN Passport – Allows sports fans to check in to
sports events and chronicle the memories of the
check-in.
Loopt - This is a social network that allows
members to review many places and get
nearby deal alerts.
20. NBA Turnstile – Allows NBA sports fans to
check in to sports games they watch live or
on television.
21. Strategy
FanRanker Overall Strategy
Physical check-in - Customers that visit/shop at sports
stores, sports bars, hotels, or sports stadiums may receive
highly targeted deals.
Virtual check-in - Caters to sports merchants without a
physical location and customers that shop on the internet.
Rewards and Incentives – Fans will gain points for being
active on the site and in the real world. The top fan will win
10% of FanRanker t-shirt revenue for a year.
22. Strategy (Cont.)
FanRanker Merchants Strategy
Utilize geo-targeted SEO (search engine optimization) to
get listed on the first page of Google, Yahoo, and Bing to
target sports merchants.
The Chamber of Commerce business listings will allow us to
find and contact sports merchants via email and phone.
Create informative videos tailored to merchants and
distributed to video networks.
FanRanker Soft Launch – Allow merchants to pre-register
before the site/app goes live.
Utilize Facebook ads to target sports merchants.
23. Strategy (Cont.)
FanRanker Member Strategy
FanRanker Soft Launch – This page will describe the
website/app features and will allow sports fans to pre-
register. One fan will win $50 on launch day.
Social Media – Allow members to invite friends and share
content on Facebook, Twitter, Youtube, Linked-in, and
Google +.
Offer Prizes – We will give away a Free T-shirt every week
on the FanRanker Facebook page to incentivize fans to join.
Recognition – We will spotlight prize winners and our best
fans. Reward + Recognition = Repeat Business.
24. Business Model Drivers
Sustaining Competitive Advantage
Using unique UID to allow users to virtually check-in to non-
physical areas
Merchant deals based on users’ favorite sports team,
coach, or athlete
Continuous recognition and rewards for sports fans
Critical Success Factors
Monitor cash flow
Expand our market reach by continuously attracting new
merchants and subscribers
Monitor customer needs and future trends, specifically new
customer acquisition costs
26. Customer Acquisition Costs
New Customer Costs:
Customer Acquisition Formula:
(Website Development Costs / Expected Life of website) +
Monthly Promotion Costs + Monthly Maintenance
New Customers
Web Development Costs = $35,000
Expected Life of Website = 84 Months
Monthly Promotion Costs = $1,400
Monthly Maintenance = $626
New Customers Per Month = 15,000 (conservative figure)
New Customer Costs = $0.16 per customer
27. The Management
Reginald Woodie,
President/Owner/Operator – Reginald is the
Team
founder of Idea Tycoon, LLC, the parent
company for FanRanker. Mr. Woodie has a
depth of experience in the field of Internet
marketing and commerce. Reginald has
ranked sites on the first page of Google,
Yahoo, and Bing and have sold the sites for
profit.
Judson Lang, Partner – Judson will work
closely alongside Reginald Woodie in this
endeavor with the online/offline marketing
for FanRanker. Judson has a background
in marketing and has written business
plans for other companies to obtain
funding.
28. AWH, Programmer – Ryan
Frederick and his team have
years of experience in developing
top quality websites and mobile
applications for the iOS, Android,
and Blackberry platforms.
29. Revenue Model
Fan Fav Store
Merchants will be charged monthly to list products
in the website and app store.
FanRanker will receive a 20 to 25% cut of each
sale.
Only products that match the member’s favorite
team, athlete, or coach will show in the store.
Advertisements will be strategically placed on
the site.
The FanRanker T-Shirt will be featured in the
Fan Fav Store retailing at $19.95
30. Financial Highlights
Year 1 Year 2 Year
3
Revenues $187K $328K
$510K
Annual Growth -- 75% 56%
Net Profits $52K $132K
$239K
Pct of Revenues 28% 40% 47%
Cash Investment (100K) (-) (-)
34. Funding Needs
Seeking $100K in funding
Milestones to be achieved (16 months)
App/Website Creation
Affiliate Programs (FanRanker Store) setup
Sports Merchant signups in 5 major geographical locations
in the U.S.
FanRanker T-Shirts designed and ready for sale
Profitability by the end of 16 months
Use of Funds For Year 1
Sales and Marketing $18K
Website/App Creation $35K
General Operating Expense $38K