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?
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.
Now 99designs has hosted
100,000 design contests.
That market is now defined.
The thing is...
businesses need
blog content more
than logos, and they
need it all the time.
We can learn the lessons,
define this new market,
and dominate it.
HOW DOES BLOGMUTT WORK?
Customers
Writers
Our customers:
Businesses
• Online
- mobile apps
- services
- education
• Local
- contractors
- real estate
- retail
• Etc.
$79/
month
of sales
≈
40%
Platform built for
• Customers
- enter
keywords
- pick posts
• Writers
- write
whenever
- get points
and pay
Our writers fall
into two groups:
• New writers
- want
experience
- many work
from home
• Experienced
- fair pay for
flexible
writing jobs
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?
WILL WRITERS WRITE FOR BLOGMUTT?
Yes, and they’ll
enjoy it.
“This Blogmutt thing was
truly one of the best things to
happen to me in 2011. Happy
new year everyone, and
here's to a fun and successful
2012!”
“I'll say — it's sure been a high
point of my 2011.
Thanks a million, you guys.
It's great to be a part of what
we're doing here.”
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.
DO THE CUSTOMERS LIKE SUBSCRIBING TO BLOGMUTT?
Again... Yes
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.
"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."
Voice over IP consultant
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
Stock Photography
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
Lean Startup
Questions:
1. Do consumers
recognize that they
have the problem
you are trying to
solve?
2. If there was a
solution, would they
buy it?
THOSE
QUESTIONS
BEGINNING IN
AUGUST, 2011.
THE ANSWER
TO EACH ONE?
YES
Now,
one question
remains:
HOW DO WE
GET BIG, FAST?
3. Would
they buy it
from us?
4. Can we
build a
solution for
that
problem?
HOW BIG IS THE MARKET FOR BLOGMUTT?
Something like
10 million
businesses
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
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 2000. 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 2006. 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.
