Team Mailmate/Kasteko

INTERVIEWSTotal: 78

Roi ChobadiEmily SteinbergGil ShotanRafael Moreno

Video

http://www.youtube.com/watch?v=JCaOL6kKwhk&feature=youtu.be

MailMate

History and Lessons

Elevator PitchDo you panic after hitting “send”, wondering what typos or cultural faux-pas you’ve made?

Next time, use Mail.Mate, for fast, accurate, personalized email proofreading so you can hit “send” with confidence.

What we had in mind

MailMate Canvas #1

• Monthly subscription that allows for X proof-read emails per month. Several packages (25, 100, 1000 emails…)

• Premium paid feature for tailored English lessons• Translation services

For proofreaders: - Additional source of

income that is flexible in terms of working hours, location & duration of work

For users:- Communicating

professionally in foreign language

- Removing awkwardness of asking friends to help

- Learning a language in a personal way tailored to user’s specific needs without having to dedicate time and resources for language learning

Proofreaders: - Native English

speaking students or young adults

- Freelance workers (native English speaking) looking for extra cash

- English Teachers /Tutors

Users:- Immigrants living in a

country with local language different than their mother tongue

- People doing business internationally and communicating in a foreign language

- Exchange \ foreign students

- People with Dyslexia or other language challenges

For proofreaders: - Universities -> Students- Schools – English teachers- Online tutors\forums- Online\social ads- Offering money to add friend

For users:- Online\social ads- Language forums- Universities- Companies- Offering refunds to existing

users that add new users

With proofreaders: - Automated sign-up and

transaction process- Online Community- Live Help / Support- Training / Vetting- Online Discussions

With users:- Automated sign-up and

transaction process- Live Help / Support

- R&D resources to develop product

- Marketing resources to reach users and proofreaders

- Community of proofreaders- Support- Biz Dev \ Sales to sell service

to companies- Brand

- Develop seamless, user-friendly simple easy-to-use service for sending proof-read emails for all platforms

- Develop easy tools and software for proofreading

- Process fees- Provide live support- Sign up paying users- Sign up proofreaders

- Payment Processor (PayPal)- English lessons\content

provider- PR/Marketing Firm

• Paying proof-readers• Paying salaries (R&D, Marketing, Support, Management)• Server\Hosting costs• Marketing campaigns• Paying transaction fees (PayPal \ credit card)

What people want

GREATEST NEED: B2B CORRESPONDENCE(37% of interviewees to-date)

0%

10%

20%

30%

40%

Workplace (B2B)

Recruiting

First intro / Networking

School Application

American Culture

Communication Coach

Personal emails

Important people

Organizing Events \ Emails to groups

CUSTOMER NEED

% O

F TO

TAL R

ESPO

NDE

NTS

First week – 20 interviews – collected data and analyzed it

Learning Week #1

• We were not “hypothesis” driven in term of customer archetype/segment – we spoke with everyone (immigrants, internationals, students, professionals…)

• The students we spoke with were interested but not passionate about it (those people could be mainstream late adopters, not early adopters)

• Many people mentioned working environment as the main use case – we started thinking about B2B

• Many people mentioned communication and cultural challenges, we started considering these too

MailMate Class 2 (following week #1)

Pay per email

Email packages, Monthly packages

Premium added for feedback

Employers paying for employees

Proofreaders:

Flexible Income Source

Users:

Proofreading emails

Language Learning

Translation services

Communication coaching

Proofreaders: Native English speaking students /young adults

English Teachers /Tutors

Users:

Adult immigrants in the US

International students in the US

International professionals

Typo-prone emailers

Busy language learners

Companies employing non-native English speakers

Proofreaders: University job boards

Referral program

Online advertising

Users:Online advertising

University Career & International Centers

Proofreaders: Get – Online ads, University job postsGrow – Referral programKeep – Seniority pay rates Users:Get – Free trial, Grow – Referrals,Keep – attractive long term packages

Software development team

Recruiting and training proofreaders

Developing software

Providing quality control

Payment Processor (PayPal)

English tutorials from content providers

Websites for expats to reach potential users

Companies that teach English to foreign employees at companies

Paying proof-readers

Software development

Server\Hosting costs

Paying transaction fees (PayPal \ credit card)

International students in the US

Companies employing non-native English speakers

Translation servicesCommunication

coaching

Employers paying for employees

Companies that teach English for foreign employees at other companies

WHAT IS MAIL.MATE?

• CURRENT HYPOTHESIS: MECHANICAL TURK SERVICE

We launched our MVP early week #2

TrafficHere’s the initial

traffic we saw. Mostly through FB and LI

Launched MVP84 visitors, 72 unique visitors from 10 countries, 97 pageviews, 90% bounce rate4 signed up users, 2 emails proofread

Some numbers and comments from

people reacting to MailMate

Learning Week #2

• We were not “hypothesis” driven in term of customer archetype/segment – we spoke with everyone (immigrants, internationals, students, professionals…)– This resulted in us ADDING hypothesis and not removing/testing

hypothesis– Also, we added just 1-2 more data points per segment. You can make

any deduction based on 1-2 data points !– We were targeting interviews based on what’s easy for us and not

what makes sense.• People did respond to our FB, LI posts (both friends who

weren’t in the inns, and strangers). People signed up for the service.

• We were OPTIMISTIC, but CONFUSED (aka all over the place).

Pay per email

Email packages, Monthly packages

Premium added for feedback

Employers paying for employees

Proofreaders:

Flexible Income Source

Users:

Proofreading emails

Language Learning

Communication coaching

Proofreaders: Native English speaking students /young adults

English Teachers /Tutors

Users:

Adult immigrants in the US

International students in the US

International professionals

Typo-prone emailers

Busy language learners

Companies employing non-native English speakers

Foreign freelancers / entrepreneurs living in the US

Proofreaders: University job boards

Referral program

Online advertising

Users:Online advertising

University Career & International Centers

Proofreaders: Get – Online ads, University job postsGrow – Referral programKeep – Seniority pay rates Users:Get – Free trial, Grow – Referrals,Keep – attractive long term packages

Software development team

Recruiting and training proofreaders

Developing software

Providing quality control

Payment Processor (PayPal)

English tutorials from content providers

Websites for expats to reach potential users

Companies that teach English to foreign employees at companies

Paying proof-readers

Software development

Server\Hosting costs

Paying transaction fees (PayPal \ credit card)

Companies employing non-native English speakers

CANVAS: WEEK 3 (FOLLOWING WEEK 2)

Foreign freelancers / entrepreneurs living in the US

So far…

32 registered users

6 email jobs

1 repeat customer

Some numbers from end of week #3

Traffic reportSome numbers from week #3. Mind you,

the website is just an email aggregator

Learning Week #3• A company named Linguatech offers language learning to immigrant

employees in companies in bay area. They focus more on Language Learning (we never went there)

• FB and such companies hire that company– We spoke with head of Linguatech and team leader at FB

• We expected more than 6 emails proofread in 1.5 weeks. Expected more than 32 registered users, and were disappointed. Should we have expected more??– We’ve sent it to very few people (~20-30)– Had allocated $40 for Google ad-words– Posted on our FB walls

• This was the first week we were “focused” on SMB foreign entrepreneurs and independent contractors. – While we were more focused than always, we were still not focused entirely (some

unrelated interviews on the expense of more related interview… it was tough getting to the right people)

– Also, we learned how difficult it was to target people based on non-demographic characteristics

CANVAS: WEEK 4

Entrepreneur / small business owner immigrants in the U.S.

Entrepreneur / small business owner immigrants in the U.S.

Paid search

Pivot

Why Pivot:• Passion - Some of us were never really passionate about the

idea, others lost passion in frustration from not moving forward.• Difficulty to target customers – how do you find and interview a

dyslexic person ?? How do you find and interview an immigrant who is a high-end freelancer?

• Mixed reviews from customers. Few very enthusiastic. Some somewhat enthusiastic. Some don’t care

• Mismatch between our expectations for MVP’s results and real results. Also mismatch between our expectations and the effort we put in.

• Out of difficulties moving forward with “right” interviews, and in attempt to re-energize the team we decided to pivot

Kasteko

History and Lessons

Elevator Pitch

• Kasteko is an online service that connects prospective college students to current students at the universities they are interested in. It arranges 30 minute video chats to talk about admissions advice, student life, etc.

Learning #1: Customer SegmentsDomestic International

Graduate

Undergraduate

- Supply is harder to get - Supply is harder to get

- Supply easy- Willingness to pay depends on distance - Have to deal extra decision makers: parents

- Supply easy- High willingness to pay but niche market- Have to deal with extra decision makers: parents

- No extra decision makers

- No extra decision makers

Decided to go with Undergraduate Internationals

Learning #2: Value PropositionExperience VS Admissions

Decided to go with admissions

- Students mainly would use it to assess their fit to the school. - They need to feel a close human connection to the person who is informing them.- They feel comfortable enough with the current substitutes: FB, relatives, etc.- Many demographics do not care about the fit, just increasing admission chance

Our service is not a morphine painkiller in this arena, more like a nice to have.

- People really care about where they can get in and how to get in.- Would be on the bad side of college admissions offices (not possible partners)- High willingness to pay in the international market

Decision Process: Where we fit?

Kasteko

Learning #3: ChannelsDirectly to customers via search:- Targeting via SEO directly to consumers is very

ineffective (0 signups)- Low customer lifetime value

Via partners:- International high schools interested in buying

service in bulk for their students- Easier customer acquisitions and higher customer

lifetime value

Decided to partner with American high schools

Metrics that Matter

Metrics that Matter: Domestic / Int’l Schools• 1-Session Price: $20 (market price)• $15,000 / international school• Y1 Breakeven Wage: Not possible• Y3 Breakeven Wage: $4/session ($8/hour)• Stanford student wage ($13/hour): breakeven in Y5

– Minimum efficient scale: 25,463 users (1.08% of eligible applicants)

1 2 3 4 5$0

$20

$40

$60

$80

$100

$120

Average customer acquisition cost

1 2 3 4 5

-$1,000,000

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

5-Year Projection

ANNUAL REVENUE

ANNUAL COSTS

TOTAL PROFIT

Metrics that Matter: Int’l Market / Int’l Schools• 1-Session Price: $200 (market price)• $30,000 / international school• Y1 Breakeven Wage: $31/session ($62/hour)• 2x current Stanford student wage ($26/hour):

– Minimum efficient scale: 890 users (0.5% of potential)

1 2 3 4 5$0

$100

$200

$300

$400

$500

$600

Average customer acquisition cost

1 2 3 4 5$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

5-Year Projections

ANNUAL REVENUE

ANNUAL COST

TOTAL PROFIT

Lessons Learned

• Got passion?• Meet often and all together• Interviews:

– “right” v. “easy”– Know how to interpret results

• Pain = business (product/market fit?)