Monetizing Social Networks

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Monetizing Social Networks

• Unleashing the Power of E-learning

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Introducing CyberTutor

• The Concept
• Create an interactive environment where college
  and graduate students can capitalize on their
  knowledge base by offering online tutoring
  services, (both live and recorded) to other
  students anywhere. Allow them to produce income
  without any out of pocket expense, knowledge of
  computing or timely set-up.
• With the proliferation of broadband network
  access, anyone with an inherent knowledge base in
  a particular subject, and the desire and teach
  can be compensated for that knowledge and will be
  able to set up their own online tutoring service.
• By acting as the knowledge broker, (i.e.
  facilitating the transaction between interested
  parties) we can charge a nominal backend fee that
  is unseen to the buyer and viewed as an innocuous
  cost of doing business by the seller.

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Current Reality of the Learning Environment

• Inherent Knowledge Base
• Students all across the country and the world for
  that matter possess an inherent knowledge base
  that is highly specific to their chosen fields of
  study.
• This knowledge, up to this point, has only been
  confined, and could only be shared on a
  localized basis. This attempt to find buyers of
  knowledge is accomplished through bulletin
  boards, flyers, word of mouth or forums at the
  local level.
• All of these are inherently geographically
  limited and based on the ability of the learning
  participants being able to get together
  (Physically).
• These restrictions can now be lifted, through the
  use of an interactive online classroom.

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The Opportunity

• Develop an application that allows for the
  transfer of knowledge across the web in a web 2.0
  environment.
• Promote this new application through a recognized
  social networking platform
• Differentiate ourselves from Webex and the myriad
  of online conferencing applications through a
  learning specific approach and solution.

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Leveraging the Facebook Universe

• Facebook, with over 21 million registered users,
  and adding a purported 100k per day has opened up
  its network to applications that can add real
  value to their users.
• These users are primarily students from both high
  schools and universities across the US. This
  social network is utilized for everything from
  instant access to friends to networking based on
  academic pursuits or outside interests.
• Facebook opened their app hoping to bring in
  various designers of supporting software that
  will make the user experience richer and more
  robust. They are hoping to stay ahead of the web
  2.0 curve and become the portal of choice for
  their users.
• The ability to create a unique application that
  shoehorns into the Facebook platform and in
  effect monetizes the very social nature of the
  network will revolutionize the way many people
  currently view social networking.

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Our Intentions

• We intend to create a flash based communications
  GUI that allows students from anywhere to create
  educational content, hold online classes, and
  generate revenue from wherever they are.
  Conversely student looking fro academic support
  in the form of Tutoring will have access to a
  vast array of talent from all over the country.
• These Tutors can teach other students over the
  web.
• The Tutors will be able to hold live classes with
  single or multiple students in attendance
• These Tutors have the ability to set-up
  prerecorded classes as well as host live classes
  with multiple students.
• They will have the ability to set their own
  pricing guidelines that will be market driven, as
  we as be given tools to advertise their services.
• We will create a e-learning business platform for
  them, so they can in essence set up shop and
  generate revenue in a very short amount of time
  with NO fixed costs
• No need to buy a domain name
• No Need to purchase or download software
• Just create content, classes advertise and
  generate revenue

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Our Intentions

• We are creating a portal from which these tutors
  can easily set-up and manage their own tutoring
  business and students can find the educational
  assistance they desire
• In this portal tutors can
• Define their own areas of expertise
• Advertise for their services
• Solicit for students
• Schedule live classes
• Take payments for services
• The potential students can
• Look for classes they can attend
• Leave feedback for other students about the
  teachers and classes
• Pay for any tutoring necessary in a secure
  environment
• Network with other students in a forum based
  environment

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Why This Makes Sense
Major Universities cost to attend continues to
skyrocket Public University 12,500 per
year Private University 24,700 per year

• Inherent Need
• The cost of failure in the high priced world of
  US Universities forces the hand.
• Student s struggling in a particular subject
  must seek help
• Parents and students themselves will pay whatever
  it takes to get through

• Knowledge Asset
• On the other side of the coin are the Graduate,
  Doctoral, and Assistant Professors.
• These people are starving. They make a very low
  wage based on their skill set and are often
  forced to seek additional work to pay the rent.
• They have a massive wealth of knowledge based on
  very specific subject matter

If we provide the academics a way to profit from
their knowledge within the confines of a cyber
environment we will have married the need with
the solution.
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The Functionality

• Our API will consist on 3 distinct parts which
  will flow seamlessly together as one environment.
• The classroom learning / teaching environment
• A flash based interface which facilitates
  interaction between teachers and students
• The classroom lecture builder
• A flash based interface which will allow teachers
  to build tutorials for use in their classes
• This app will closely resemble Microsoft
  PowerPoint in that it is a slide based approach
  to learning with the ability of the builder to
  integrate text, video and pictures
• The community
• This will be the IPS where all core functionality
  outside of the flash environment take place
• Building teacher pages
• Transaction functionality
• Uploading of files

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A Compelling Model On the Micro Level
We are building a model that will have
significant impact at the micro level (i.e. the
individual) boosting potential as well as
actualized incremental revenue for the
individual that mimics the true value of the
knowledge based asset.
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The Revenue Model Defined

• This application will generate incremental
  streams of revenue in the following ways (these
  fees will be detailed out in the following
  spreadsheet)
• Classroom fees
• A set fee to host a class no matter the of
  attendees
• Fees for the upload of content to support the
  class
• A of gross revenue generated per class
• Fees for replay of recorded classes
• Advertising revenue from the portal site

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Cost Structure

• Fixed Costs
• Web based hosting for the portal solution
• Somewhat fixed based on initial projections, but
  subject to incremental variance based on volume
  (i.e.. adding another dedicated server)
• Phone / Internet support for the application
  including the following
• Billing and revenue support
• Dispute resolution
• Technical support
• These are fixed at the onset based on a minimum
  projected volume but will scale incrementally as
  volume increases
• Admin and support
• Accounting personnel
• Marketing and sales personnel
• Management

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Cost Structure

• Variable costs
• Flash hosting
• Use a complete sliding scale based on utilized
  bandwidth.
• Negotiate a long term hosting contract with a
  quality provider that allows for unmitigated
  growth.
• Marketing and Sales
• Incremental spend on sales and marketing based on
  volume and market penetration

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Marketing

• Penetrate the Facebook network and best utilize
  their tools
• Utilize conventional advertising
• Multilevel Marketing
• The Black Box

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Marketing

• Penetrating the Facebook social network requires
  extensive Buzz marketing.
• In-Facebook marketing
• Plug ourselves into the social network through
  the following
• Register our API with Facebook to be put on their
  website
• This will garner access to their social network
  and relatively inexpensive advertising.
• Engage social networking hubs who will see our
  API as a socially viable alternative to the
  current structure

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Conventional Advertising

• Target graduate students and above by finding
  where they congregate both online and in reality
• Online forums that concentrate on academics
• Local coffee shops in university environments
• Banner advertising on service based websites
  (Craigs List) etc
• Internet Radio

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Multilevel Marketing

• Dedicate 5-10 selling spaces at each college and
  university throughout the US.
• These selling spaces get a portion of the revenue
  of every CyberTutor they sign up in an ongoing
  fashion.
• These resellers are engaged at the local level
  and are a physical workforce that will draft
  tutors, who may not otherwise be engaged

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Income Streams as a Factor of Volume Excluding
Fixed Costs
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Proforma Income Statement
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3 Year Proforma Projections
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Initial Capital Requirements