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VidDrop

We are like a Yelp Meets You Tube for e-commerce shopping.

USA, California
Market: Internet and IT
Stage of the project: Idea or something is already done

Date of last change: 04/30/2019
Min investment
$  100.000
Total required
$ 750.000
Rating
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Idea

VidDrop [www.viddrop.net] - we are the first of our kind creating an online product review video-based shopping experience.

VidDrop is a bold solution using the power of video to empower consumers for e-commerce shopping. We are one place online where consumers can post and watch online product review videos.

www.viddrop.net/video1

We are a product review video site. We will have a web platform and video creation mobile app. Consumers will research e-commerce purchases based on product review videos.

Current Status

We have the tech team to build the product and the marketing and product launch plan. We are in the beginning phase of the business. We have a basic website, mock-ups of how the platform will work and a 40-page business and marketing plan with 5-year financials.

USER ACQUISITION PLAN
We have an aggressive Facebook and Instagram marketing campaigns strategy. We also have an exciting angle for our campaigns where we are talking to firms that represent several celebrities to have celebrities to do videos on VidDrop. The celebrities we are currently in talks with their firms with include the actress Kristen Bell, Snoop Dogg, and Kendell Jenner.

Market

Video ad spending was estimated to be a $22 billion market in 2018 and will grow to $33 billion by 2020 (source eMarketer 2017).

Problem or Opportunity

There are real problems for online shoppers.
How do consumers buy the right product at the right price?
There is currently no one place online for video reviews of products to help consumers shop online.
Presently there is no way for consumers to post product review videos and send them to their friends and family.

Solution (product or service)

VidDrop: We are the one place online where consumers can post and watch online product review videos.

We have a mobile app and web platform where people can create product review videos and post them to our video platform.
We are the first of our kind creating an online product review video-based shopping experience.
Consumers can receive email coupons and gift cards for viewing and posting videos.

Brands can place 1-10 minute product video ads on our site for a fee.
We also generate commissions of 3%-10% on items purchased after watching a video.
Our e-commerce affiliate partners are Amazon, BestBuy.com, Target.com, Sephora.com, Macys.com, Home Depot, and Nordstrom.com.

VidDrop B2B Business Model

We have created a unique API that e-commerce businesses can use to add video reviews to their website with ease. What normally would take a tech department month they can use our API and add video in weeks.
We have a SaaS business model. We charge e-commerce businesses $50,000 to $100,000 a year to host and manage their video reviews. Consumers can use our mobile app to create video content for brands like Sephora and Target.



Competitors

Yelp and YouTube.

Advantages or differentiators

3 Ways Core We Are Different Than YouTube
1) We are only focused on product review videos and our search and customer interface will allow a better search for specific products. YouTube is working on replacing television and being an entertainment site like Netflix or Hulu. They have launched YouTube Premium and YouTube Music. They are not at all focusing on helping people by the best products by reviews.

2) We have a mobile app where people can create product review videos.

We give incentives to consumers. We give points to consumers for uploading videos and watching videos. Once a person has accumulated 1,000 points they will get a $25 gift card for places like Target, Amazon or Starbucks. They will also receive coupons via email.

4 Ways Core We Are Different Than Yelp
Yelp only has reviews for businesses and places like restaurants they do not have reviews of specific products like VidDrop.

VidDrop is video based and Yelp is only text-based reviews.

We have a mobile app where people can create product review videos.

4) We give incentives to consumers.

Finance

An assumption of $30 commission, a user buys $1,000 worth of products per year through our affiliate links and we generate a 3% commission (commissions are 3%-10% so it could be $100 or more per user, but we used $30 to be conservative).

REVENUE
We estimate revenue next year (one year after launch) $2,575,000 with 100,000 users and Year 2 $13,500,000 and with 500,000 users in Year 3 $42,000,000 with 1,000,000 users and Year 4 $104,000,000 with 2,000,000 users.

Business model

VidDrop will generate revenue through:
#1 Video ads from major brands. We are partnering with the ad platform Ad Colony for our video ads and they can show video ads for major advertisers like Microsoft, Disney, Toyota and Uber on the VidDrop mobile app.
#2 Affiliate commissions on e-commerce purchases made after viewing a video.

Money will be spent on

Seeking $750,000 of Seed Capital

$300,000 towards employees (to build and launch tech product)

$150,000 on marketing and PR (email, Facebook Ads, YouTube Ads, Instagram Ads, Google AdWords, SEO)

$19,000 office space

$36,000 business and accounting expenses

$140,000 celebrity endorsements

$10,000 TechCrunch Disrupt conference sponsorship for launch

Offer for investor

We are offering a SAFE document or convertible note for the investor and can talk more in detail at meetings.

Team or Management

Risks

We may have a direct competitor that comes to market before we gain major adoption.

Incubation/Acceleration programs accomplishment

We completed the Accelerator program at Expert dojo in Santa Monica.

Invention/Patent

We are in the process of filing a patent for the mobile app. Our patent attorney is confident that we can get a patent for the product review mobile app.

Photos

Photo 1 - VidDrop

Website address

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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Photos
Product Video
Website address