2. Introducing HotWax HotWax is a website building system Requires no geek expertise No coding No knowledge of Servers, FTP, Databases, etc Virtually anyone can build and maintain a HotWax website.
3. What makes HotWax different? Current world: 2 kinds of websites Built and maintained by experts / geeks Very simple, restrictive “fill-in-the blanks” websites Such as those offered by Intuit, GoDaddy, and others Problems: The website owner has little control Custom built websites are very expensive “Simple” websites allow for extremelylimited modification
4. What makes HotWax different? Why can’t a super-cool website be simple to create and maintain? Why must one learn about HTML, Javascript, FTP, etc? The HotWax goal: Website software as simple to use as a word processor Unexpectedly robust features User in full control of content and design No code needed ever
5. Why the name "HotWax"? In the Olden Days, printers laid out pages by pasting blocks of type, photos, logos, etc on to a big blank flat The adhesive was hot melted wax: Easy to use Easy to control The HotWax interface is influenced by the directness and simplicity of using a hot wax layout
6. Building a website with HotWax User creates own sandbox websites HotWax includes pre-loaded themes Colors, fonts, page designs, etc HotWax includes pre-loaded frameworks Typical pages set up for doctors, lawyers, artists, etc
7. The HotWax Product Offering HotWax will provide hosted websites Budget: $29.99/mo Pro: $49.99/mo Discounts for advance payment HotWax goal is to have 80% of subscribers purchase the Pro plan
10. Corporate Structure S Corp: Net revenue disbursed to shareholders on a regular basis Shareholders holding 5% or more will be on Board of Directors Business goal: Maximize cashflow and revenue disbursement to shareholders
11. Summary of Business Goals $1 Million in annual Free Cash Flow for shareholder disbursementwithin 3 years Year 1: 1 new subscriber / day $ 35 / mo average subscription Year 2: 2 new subscribers / day $ 37 / mo average subscription Year 3: 3 new subscribers / day $ 39 / mo average subscription
14. Summary of Subscriber Revenue Prospects End Year 1: Yearly revenue -- $153,300 End Year 2: Yearly revenue -- $ 482,895 End Year 3: Yearly revenue -- $ 1,014,080
16. Additional Revenue Sources “Ninjas” HotWax trained consultants Ninjas pay for training -- +/- $250/ninja HotWax provides client leads Ninjas a likely source of new subscribers Setup Fees Possible: equal to 1 month subscription Add ons and Extras Email provision – users get unlimited email, email addresses Sales of domain names, etc New product offerings HotWax Mobile “DreamWeaver” on the web
17. Expenses Expenses are very low Low cost servers or cloud computing Current new Goliath server can handle about 550 websites $159/month, include backbone connections Cloud computing costs even less Tech support Assume about $15 / year per subscriber Revenue from setup charges will more than cover support Salaries Officers will take equity and dividends in lieu of salaries Support staff primarily 1099 consultants or offshore Marketing Primarily low-cost social and viral marketing Ninjas will be key drivers of subscription revenue
19. Funding Goals Seeking $25 – $100K To be applied to marketing and operational expenses
20. Investment opportunity Convertible Bond Fixed rate security Secured senior debt 36 month maturity – full return of principal Dividend: 12% / year Paid monthly or annually Convertible at any time to preferred stock 1 Bond = 1% total outstanding shares of stock Preferred means– no dilution in event of later offerings Investment amount: $10,000/bond Bondholders will be informed in advance of other capital events that might affect the value of shares, and will be given advance opportunity to convert to stock
21. Investment opportunity – Option 2 Preferred Stock No dilution in event of later offerings Each Preferred share = 2% of outstanding shares Investment amount: $10,000/preferred share
22. Comparison / Reality Check Squarespace.com offers a similarly positioned product at a similar price $ 2.2 million after 3 years
