HOW TO PITCH A WEB START UP TO A VC AND THE 10 QUESTIONS THEY WILL ASK

17 12 2009

I remember reading a quote from Wil Schroter “Pitch everyone, all of the time”.  If that isn’t the answer to the million dollar question.  When creating these ideas remember the Art of building a business.  Create something that will make an already good idea better, right a wrong, or will add to the quality of life.

Right now investors are looking for the next best thing, and you never know who may be in the room.   I have met a many a investor via Skype and Facebook.  One thing you will find is that when they give you the downside of your “astronomically mind boggling” business idea they are really trying to help you along.  If you have a box or cute little bag write them on a small card, jot down the strategy or how it will make the investors money then file it away until you are ready to use it.

Here are 10 of the questions most asked:

1.  So tell us about your business?

This is the opening to the inevitable “elevator pitch”.  Please don’t spit on the VC while trying to get as much out of your mouth as you possibly can.  A business plan overview is good enough. Grab their interest.

2.  What is going to stop the “Big Boys” from copying you or smashing you like a bug?

Remember they have more money, and a broader reach.  Never say “Nothing” or  “Nobody is doing what we do”.  There is always competition.  Say something like:

  • We can move more quickly
  • The “Big Boys” have to much to manage and can’t take the time to innovate the needed changes.
  • Or the famous, they would be better off acquiring us than copying us

3.  Why are you raising the money you want to raise?

This is very important.  It is very important that you do your homework here.  Never give conservative numbers.  Be ready to explain them and how you arrived at them.

4.  What are your benchmarks for the money and how far will this get you?

“6 months past launch when we expect to be cash flow positive”.  You gauge this by looking at it this way, how long would this money last you if you had zero revenue.

5.  Who are your customers?

Try to get testimonials. Remember Google Ad Planner.

6. What is your marketing strategy?

This is critical to your success, so plan for it now.

7. What are you coding in?

Hello, this is your company please know this.

8.  Are you handling the technological infrastructure for scaling?

Who is your support.  When consumers rush in will your servers hold up.

9.  Who are the members on your team?

Have some resumes.  And please have a decent web presence.

10.  What is the ROI on this venture?

Give an approximate date or period of time for ROI, figure in unforeseen occurrences.  (Over deliver and under promise.)

Advertisements




HOW TO REALLY LEARN HOW TO GET STARTED IN AFFILIATE MARKETING

15 11 2009

Hey everyone, I hope everything is great out there with all my friends in the happy blogosphere.  I am especially excited today, as I am everyday, to speak on the old issue of Affiliate Marketing.   I am going to be one of many to tell you that nothing good comes to you very quickly it take a bit of work but I came across some very interesting information in Website Magazine (Join for Free).  Where it talked about  Affiliate Marketing Benchmarks have not been as good as expected.

Like most of you I am very new to the concept of earning money buy talking about my passion which happens to be the Internet and Mobile Marketing.  In my quest, as usual, for information I came across an article regarding Affiliates failing to measure up to the expectations of the forecasters on the Internet.  What I am trying to say is not as many people as was expected got into the game of Affiliate Marketing atleast not on a fulltime basis, which is confusing to me.  What I pictured in my head was “going to a mall packed with consumers, buyers, and people wanting to purchase or do business and there being only two or three stores in the mall”.  Wow! I thought what a great opportunity for those that take the time to learn and understand the Internet and earn a great living.  I have watched some of these people in their early twenties (my daughter for one) who have been at this for only a 3 months begin to earn as much as 500/wk.  I know this doesn’t sound like much to some, but guess what those who have persevered are now making on the low side 6 figure incomes on an annual basis, and they are clamoring for help out here in the web world.  There seems to be no shortage of room for a new affiliate to get started and grow.  I read a book called “Click” by Bill Tancer .  In his book he talks about something called Pareto’s Rule (80/20) which is to say that 20% of the people earn 80% of the wealth and how on the Internet the rule is more like 90-9-1.  How the 90-9-1 principle or rule breaks down is 90% of the people on the Internet are lookers or lurkers(social audience) and 9% are out there looking for something specific(editors) and 1% are actually out there trying to sell information items or goods($Creators$).  For a person who is looking to do something to earn an income from home there are a lot of websites out there that are truly not scams, there are also a lot of programs out there that will teach you how to get up and going on the Internet and it maybe at some small fee to you but the benefits you derive from it are forever long lasting.

One program that I am a favorite of is Mark Ling’s training website from Clickbank.com call Affiliorama.com and it is “FREE”, of course why not train those who would be selling your products, believe it or not this is basically his point of view I really like this Marks’ style (not a plug at all).  He is very willing to give you very good tried and tested tools for free, if you just stick with the program you will be able to one of the few to “UNDERSTAND” how income is derived via the web and then quickly put it into effect within your first week of training.