26. Many new education portals / services launched . Ex. Meritnation.com In India, one needs to tap into the “community effect” to make any online venture a success. All of the above examples have become successful by generating positive network effects. Source: JuxtConsult; I-Cube 2008; Team Analysis 7
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28. Achieve the “community effect” among an initial set of bloggers in each user group, which will encourage others with similar interests to blog
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30. Target communities whose users would ideally take to blogging, such as people trying to lose weight / keep fit, etc.
31. Attract people to write quality content, by promoting product design features that enable online community building8
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34. If buy-in can be obtained from a few large school chains, a large number of students can be incentivized to blog, which will further incentivize other schools’ children to create blogger communitiesSchool / College Blogging Entrance Examinations Schools / Colleges MBA Coaching Institutes Students / Education Source: JuxtConsult 2008; Team Analysis 9
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36. Firms such as SOTC can give users “blogging coupons” to get started on Directi blogs
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38. Great Cross Branding Opportunity for Art of LivingHealth / Spirituality Enthusiasts Art of Living Spiritual Ideas / Practices Source: Indiaprwire.com; Web Sources; Team Analysis 10
40. Securing “Marquee Bloggers” – Examples Securing “Marquee Users” along with helping create suggested sub-communities of bloggers should make sure that we leverage the “Community Effect” opportunity with great success 12
48. Directi gets a share of the transaction amountBloggers The Directi marketplace has two parts – (1) The User Marketplace: A transaction platform for bloggers and developers where bloggers can ask for specific blog designs or blog setup help, and (2) The Corporate Marketplace, where firms employ developers to develop sponsored themes and widgets offered free to bloggers Source: Team Analysis
62. Revenues from Ads Based on the above calculations any acquisition cost below $6.61 is justified. Hence we should promote our brand with display, SEM and radio advertisement being the priority order 24
80. Directi ties up with various companies & creates a network of affiliates who want to advertise more effectively
81. This system allows better ROI on the advertisers’ moneyThe Internal Affiliate System (IAS) can be an extremely useful model for Directi as not only does it generate revenue (commissions from advertisers), it also ensures that good content and hence more readership is generated for the platform 29
82. Optimistic Estimates with a simple freemium model and an integration with AdSense result in an NPV Of $46.35M $ Million NPV = $46.35 Mn CAGR 74.80% CAGR 120.40%
83. Pessimistic Estimates with basic monetization platform suggest an NPV of $3.99M - Project seems viable even in worst case scenario $ Million NPV = $3.99 Mn CAGR 49.60% CAGR 104.60%
84. Conclusion There exist significant gaps in the feature sets needed for Indian bloggers & what exist in today's platforms which can be plugged with a targeted feature set. Community effects need to be leveraged in order to achieve substantial network effects & propagate the acceptance & spread of blogging in India. Financial projections suggest that using the monetization tools elaborated, Directi should expect to derive significant value from this project. 32