Am I Overpaying?By: Yousef Fadila

Sondos Qawasmi Salma Rabi Amer Kurdi

1.0 IDEA AND PRODUCT

IDEA & PRODUCT

What is “Am I Overpaying!’A social mobile app that allows users to share the prices they pay for the Internet Bills amongst their defined circles and get a newsfeed of who is paying even less.

Why “Am I Overpaying!”1. First step in solving any problem is recognizing there is one!

Overtime customers are becoming less aware of the actual status and miss new discounts which vendors apply for new customers.

2. In addition to sharing statistics to make users aware of problems in their bills, The app will also help users to solve that by giving them offers to pay less. This way it saves expensive users time required for research market and finding better deal.

★ Users can challenge their non-members friends with social

notifications/SMS (chosen from mobile contacts)/ IM message with

link to sign-up to Am I overpaying.

★ Minimal data is required in sign-up, option to sign-up using

Google/Facebook account to make the whole process quick and

seamless process.

★ Am I Overpaying! is planned to be a hybrid app; a web and mobile

app over phonegap framework, hosted on cloud services without a

need to any in-house hardware.

★ The idea is based on network and fast community building, not a

technology patents.

IDEA & PRODUCT - Features & Technology

Users can share their “price rank” with their friend who haven’t used Am I Overpaying yet as a challenge to whom paying less.

★ AM I Overpaying has internal notifications system, fully customized

and based on user preferences as well as having the option of

blocking notification from certain type to certain service.

★ The notification system is used also by the offer matching system

to offer attractive deals to members.

★ Offer matching system uses machine learning techniques to get

better over time and match the most attractive offer to users.

IDEA & PRODUCT - Offer Matching

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2.1 Market

Am I Overpaying Market

Am I Overpaying! is a two-sided market; playing the role of a social network that bridges between ISPs and Internet users in different areas. So, from users viewpoint, Am I Overpaying! is a virtual community through which they can do their market research in more facilitated way

★ Individual subscribers: Proposing value through showing user their price rank to let them aware of being paying more! then offer them better offers to pay less.

★ Internet service providers: we propose the bridging point between ISPs and potential customers

Am I Overpaying Market - Individual Subscribes

Internet User Growth (% change 2011-2016)

★ Targeting internet service subscribers in MENA region★ According to arabnet.me, there is 72 million Internet users in the MENA region.★ The MENA region has the fastest growing rate in internet users.

Am I Overpaying Market - ISPs in MENA

★ Am I Overpaying serving ISPs in MENA region by connecting them to potential customers.

★ The fastest growth in subscribers number in MENA region, attracts new companies to enter the ISPs market, mainly as branded resellers to class B ISPs, during 2014 the #ISPs growth by 4% in egypt! Which, in turn, increase the competition in the market.

* Class A is a provider own the infrastructure

Country #Class A + B ISPs *

# All others (Resellers)

Egypt 12 208

Morocco 13 109

UAE 5 86

Saudi 6 45

#MENA ~60 ~800

Egypt is on the top of the MENA countries with number of ISPs. which has 4 class A (Egynet, LINKdotNET, TE Data, and NOL).They sell to class B ISPs (8 major companies) which, in turn, sell to the rest of the 208 ISPs.

Am I Overpaying Market - Segmentation.

As ISPs are country based, intuitively, our main segmentation is geographically based.

● Egypt’s Internet users are the highest number with 12,568,900 users which is 18.7% of the total Arab Internet users, followed by Morocco and Saudi Arabia.

● In addition, being the only country in MENA with 200+ ISPs number makes egypt the most potential country to start with.

● As our office is located in Palestine, being familiar with palestinian market and major players in advertising, Tech, Telecom and ISPs, it make sense to target this segment too at early edges.

At initial stage, We will target the egyptian internet subscribers while using the palestinian market as a pilot segment. The focus will be on individual subscribers side. The vendors side will be targeted once our #subscribers is at least 3% of the total subscribers this vendor can serve.

2.2 COMPETITION

Am I Overpaying Competitors

★ Am I Overpaying strategy is to serve as a channel to generate quality and affordable leads to service providers.

★ No plan to totally replace other channels but yes to emphasize the advantages of Am I overpaying to win from their budgets.

★ As our customers are already Internet subscribers, We are mainly compete with ISPs online advertising channel to win from other vendors subscribers.

Leads aren’t prior filtered. Vendors lack information on current user pain and expectation from the new vendor.

focus mainly of getting new customers.

Am I OverPaying

Pay only for results. fixed price per lead the fit the max price vendor or customer afford to pay. No surprise, lose of budget or unexpected high lead price.

High sales conversion rate expected As users already motivated to pay less (aware of the problem is his bills). and they already fit the vendor filter criteria.

Vendor can set a filter to target its own customers Who find that their friends are paying less than them. This give vendor another phase to retain current customers.

Am I Overpaying Advantages Summary★ Vendors are paying for leads only! No initial budgets is required to getting

result

★ High quality leads as vendor can set pre-criteria to filter out low-potentials leads or leads he can’t served

★ Most current leads generation method used by vendors are focusing mainly in getting new customers, while Am I overpaying also serves in this sector, It also serves vendors to target current customers who trying to find better price and offer him a better deal before they take it from another vendor.

Am I Overpaying! Strategy for Sustainable Competitive

Am I Overpaying! value is generated based on users database size it can attract. To sustain a long term advantage, it’s important to have a fast growing users at the start in addition to quick implementation to users feedback/requests, which will also reduce the risk of copying it.

Our plan for fast growing is:★ The 1st release launch should be immediately followed by intensive marketing efforts and

feedbacks/requests collecting from users and prioritize them for the 2nd release

★ The social component of inviting/challenging friends should be available in the 1st release to help in fast growing plan

★ Build a relationship-oriented business We will focus on long-term relationships with customers, not a short term deals.

3.1 BUSINESS MODEL

Am I Overpaying! Revenue Generation Channels

Selling leads to vendors

• A vendor can set criteria to reach out for the interested leads (based on region/ current provider/ bill amount and others).

• Option to pre-buying leads (exclusive/nonexclusive) that are loaded directly to vendors’ CRM.

Selling big data to vendors

• This channel is relevant after we have enough data. expected to be valid after 4 years of operation!

• Big data is relevant to vendors for researching current trends, switching triggers for developing their marketing / customers retention strategies.

* Selling big data to vendors is not relevant for the first 3 years. so its not included in the finance forecast.

Pricing Strategy

Am I Overpaying! pricing strategy for leads is bid based. The vendor/Customer will set the maximum price he is willing to pay per lead that fit a specific criteria.

★ In Initial stages, the price of all leads will be fixed to a low a price.

★ The price will go up when two vendors interesting in the same criteria.

★ No upper limit, The maximum price a vendor willing to pay is the served price.

Long-Term Expansion

For the long term, Am I Overpaying! will be expanded to serve more services in addition to ISPs.

★ We will start with other Telecom/Communication services as many ISP vendors also serve as telecom vendors. This will give the vendor a comprehensive image of how much a person is paying for each service so the vendor can offer discount packages for multi services.

★ This expansion will let us re-use the users database we currently have for services to generate leads to other services.

3.2 INVESTMENT

Investment Phases

Initial Phase 2nd Phase 3rd Phase

★ Run the business for 6 months.

★ Launch beta version. Implement Initial marketing plan.

★ Reach 20,000 subscribers In palestine

★ Initial human resources○ 2 R&D.○ 1 Marketing & Sales.○ 1 Product.

★ Run the business for another 12 months

★ Build leads sales and distribution channels to ISPs in palestine/Egypt.

★ Develop the next release.

★ Increase marketing efforts.

★ Grow in sales team.

★ Contract with more vendors.

★ Increase the marketing efforts

★ Grow in customers services team

★ Improve offer matching system

★ Start targeting subscribers in other MENA countries.

convertible note

Investment Required:$100K

Investment Required:$400K

Investment Required:$2M

9% share 15% share

Expected Expenses

Summarize

Exit Opportunities for Investors

OPTION 1: Strategic Acquirer

The most likely exit afforded investors will be through acquisition. If the company's actual operational and financial results are in any

reasonable range of the projected results herein, the company will become an attractive asset to :

● Vendors who want to enter new region, Am I overpaying can give a huge benefits to them by:

○ Exclusively targeting other vendors customers by focusing in their personal experience and their current pain.

○ Using the big data collected to research the market, find current trends which drive people to switch from their

current vendors and use that data to develop the marketing strategy.

● Advertising agencies that has contracts with big vendors and want full control on the offer matching system.

OPTION 2: IPO

To the extent that actual operational results materially exceed those projected herein, the probability of an IPO exit increases.

Exceptional results would enhance the AM I Overpaying brand name and financial position, expanding to serve more services in

addition to ISPs and globalize its market.

3.3 Financial Forecast

Key Metrics For Revenues Forecast

❖ No sales are expected in the first 8 months.

❖ Over time, new vendors will join us, and therefore #offers will increase.

❖ An improve with offer matching system based on previous data analytics will result in a better conversion rate.

★ ISPs affiliated on cj.com / wesell.co.il affiliate networks are paying ~20$ per lead. based on this we choose to start with 6$ as a base price.

★ Am I Overpaying pricing strategy based on bidding, start with 6$ with 1$ increase, each vendor set a max price per specific criteria . The more vendors interesting in the same criteria, The higher the price will be, we expected an average price of 14$ by 3rd year

Cash Flow Projection - Year 1

Cash Flow Projection - Year 2

Cash Flow Projection - Year 3

Break-Even Point● Am I Overpaying will reach its break-even point after 31 months of operation.● Based on 3rd year projection:

○ Total expense: 1860100 - Need to sell roughly $155,000 each month○ Average price of 14$ per lead:○ Break-Event #leads per month: 11073

4.1 MARKETING

MARKETINGOur strategy is to position Am I Overpaying! as attractive and quality lead generation channel for vendors. and form the individual side as effective digital WOM price comparing alternative to get better deals, Therefore, to reach these two targets the major focus will be building huge community!

● Promote the app emphasizes these aspects:

Problem

Solution

No worries

Promote us as method to find if I got screwed or overpaying

Promote us as the best method get better offer and pay less!

Never got screwed again, keep updated with best offers to pay less!

Problem

No worries Solution

MARKETING - Distribution channels

As our targeted market is internet subscribers, all effort to build subscribers will be via online channels

★ Website and blogging.

★ Social networks:○ 90+ of our target market uses social media!○ Interact and discuss with the target customers in

the social platforms they use.

★ Paid channel advertising: through advertising on PPC and paid social media channels.

★ Implementing payless challenge notification/invitation system to act as refer-a-friend. current members can challenge their non members friends with social notifications or SMS

Penetration of Social networks across Internet users, Ref: Ipsos study

Egypt92%

Palestine90%

MARKETING - Channels & Methods Explained Channel / Method Target audience Goal

Paid Online Advertising

users who wants to make sure they’re not being overpaying or deceived

Creates Awareness about the app in the first stages. the results’ will be evaluating the effectiveness and ranking of used ads where a better and deeper understanding of the target will be developed

Social Networking users who wants to make sure they’re not being overpaying or socially compare their price rank.

Interacting with prospects to gather information about their interests, promote the app as social community that compare your price rank with your friends

Blogging (Articles) vendors, advertising agencies Promote the matching offers results, numbers and statistics to people start paying less after using the app.

Website Public audience, app users, ISPs and advertising agencies

1. Providing full information about who we are and we do 2. Answering app-related questions and specifications3. Access the desktop version.

Payless challenge Social circles of current subscribers of

Spread on subscribers social circles to increase our #users and have more accurate statistics of friends paying less

4.2 SALES & DISTRIBUTION

Initial Partnerships

Big enterprises are aware of doing deals with new startup, so Am I Overpaying strategy for the 1st release will be:

★ Partnering with advertising agencies that have already launched advertising campaigns to big ISPs in middle eastSell these leads to these agencies, in their turn they’ll sell them to vendors

★ Partnering with small providers who will find “pay for leads only with no initial budget” attractive, This will give us proof of results and leads quality measurements to gain more big customers

Initial Partnerships

We’ll be seeking and initiating partnerships with the agencies that have previously worked and now are working with ISPs, especially those who are providing them with digital services. Starting with 2 agencies and 2 ISPs from each targeted country at the 1st phase, thereafter we expand our partnerships and seek different partnering options. Of these targeted agencies and providers are:

★ Advertising agencies :○ Zoom Advertising (Palestine)○ JWT (Egypt)

★ ISPs:○ Mada (Palestine)○ Speed ADSL (Egypt)○ Link (Egypt)

Key Metrics And Target Sales Performance Evaluation

# of app users # of offers shared with users # of offers converted to leads

1.5 months after official launch

15,000its critical to reach at least 15K household in 1.5 months to put us as a potential lead generation method for market major players.

0at this stage the focus will be on community building, modelizing areas and prices in different zones.

0

2 months after - Release version 1.5: Implements what we address as critical based on analysts feedbacks of users usage and expectation form the product.

3 months after launch

50,000 4,000 120

at this stage, based on current users analysis and act on previous offers in addition to partnering with new vendors that covers other geographic areas, we expect an improve in “offer matching” system that increase the conversion ratio.

1 Year after launch 550,000 110,000 8,800

Thank You,TEAM C

Am I Overpaying!

is OUT..