VirtuVill 1003

VIRTUVILL
WHO’S IN YOUR CLOSE CIRCLE?!
W H O ’ S I N Y O U R C L O S E C I R C L E ?!
ASHWIN K CHANDRABABU
ASHWIN.CHANDRABABU@STUDENTS.VLERICK.BE
+ 32 486 822 003

DATED: 16 MARCH 2009 TH
DISCLAIMER: THE BUSINESS PLAN HAS BEEN SUBMITTED ON A CONFIDENTIAL BASIS SOLELY TO SELECTED, HIGHLY QUALIFIED INVESTORS. THE RECIPIENT SHOULD NOT
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VIRTUVILL
I. EXECUTIVE SUMMARY..........................................................................................3
II. MARKET ANALYSIS.............................................................................................4
1. THE INDUSTRY...............................................................................................................4
2. THE CUSTOMER..............................................................................................................6
III. COMPETITION..................................................................................................8
IV. THE COMPANY...............................................................................................10
1. THE SERVICE AND SERVICE BENEFITS....................................................................................10

2. ENTRY STRATEGY..........................................................................................................11
3. GROWTH STRATEGY.......................................................................................................14
V. THE MARKETING PLAN.......................................................................................17
1. TARGET MARKET STRATEGY..............................................................................................17

2. PRICING STRATEGY........................................................................................................18
3. ADVERTISING AND PROMOTION...........................................................................................20
4. SALES FORECAST..........................................................................................................21
VI. OPERATIONS PLAN...........................................................................................24
1. ONGOING OPERATIONS PLAN AND GEOGRAPHIC LOCATION............................................................24
VII. CRITICAL RISKS..............................................................................................26
1. MARKET INTEREST AND GROWTH POTENTIAL...........................................................................26

2. COMPETITOR ACTION AND RETALIATION.................................................................................26
3. TIME AND COST TO DEVELOPMENT......................................................................................27
4. PROPRIETARY ISSUES.......................................................................................................27
VIII. THE OFFERING AND FINANCIAL PLAN.........................................................................28
THE OFFERING AND FINANCIAL PLAN
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While MySpace and Facebook

currently rule the popular I. EXECUTIVE SUMMARY
crowd on the Internet social
scene, Fader (Wharton
Marketing Professor) says the INDUSTRY OVERVIEW: The most basic question is how an
forces that make a hot site are organization adds value. It adds when the customer is
difficult to quantify; any site willing to pay a price which is higher than the
could become the next outcast. opportunity cost of creating the product/service offered.
"There is no reason to believe
If the members of social networking site are the
that these, or future ones that
customers of sites like MySpace, Facebook or YouTube,
are emerging on the radar
then these organizations are destroying value because
screen, will be any different. I
while there is an opportunity cost for providing services
don't think anyone can come
to their user base, all those services are provided for
up with a genuine reason why
free.
they have become so popular,
outside of 20-20 hindsight." WHAT IS THE PROBLEM STATEMENT: Social Networking websites
generate revenue through the companies who pay to
– Excerpt from
advertise on their websites. There are two problems with
Knowedge@Wharton
the current market. Firstly, 40%-50% of users of social
article “MySpace,
networking sites are made up on teenagers who are not
Facebook and Other
the decision making units for most of the products
Social Networking Sites:
advertised on these websites. Secondly, 20%-30% of the
Hot Today, Gone
users are domiciled in geographies the products
Tomorrow”
advertised are not available. Therefore, the CUSTOMERS
of social networking sites are paying for a lot of
AUDIENCE who are irrelevant to their products. Given the
VirtuVill will demography of their user base, these websites also
constantly face the threat of mass migration, a classic
change the example being Friendster, which lost all of its 20 million
dynamics of Social users to the new sites like MySpace and Facebook.
Networking WHAT IS THE ONLY SOURCE OF COMPETITIVE ADVANTAGE TODAY: The only
differentiation on the social networking sites are the
Websites!!! number of users. The more the users, the more revenue
they generate. Facebook for example provides one large
network of users who are loosely connected to each
VirtuVill is not just other with very less influence on each other because
they hardly know all the users on their friends list.
another social
WHAT WILL VIRTUVILL DO: VirtuVill will focus on building a
networking site. portfolio of networks based on special interest and
Read on to find out geographies with a single focus of building a quality
network with the strongest relationship between its
why?!!!
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users. It’s about quality of network rather than mere quantity. It will build its
user base with a primary focus on providing its customers the most relevant
audience for advertising campaigns and yet build loyalty among its users to
retain them for long term.
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I. MARKET ANALYSIS
1. THE INDUSTRY
Online advertisement industry grows at

slower pace:
“Interactive advertising
continues to demonstrate year
over year growth as marketers
and consumers increase their
embrace of digital media. The
essentially flat performance we
see quarter to quarter reflects
in part cyclical advertising
trends. Compared to the
trajectory in other media and in
the general economy,
interactive has outperformed
because it delivers a level of
accountability unmatched by
any other advertising
medium.”1
– Randall Rothenberg,
President and CEO, IAB
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I
n 2008, the online advertisement industry surpassed Top 10 global websites of the
$21 Billion1 in sales in US alone. The worldwide online world4
advertisement market is estimated as $45 Billion.
While the industry has grown at a healthy rate, the 1. www.yahoo.com
online advertisement spending is forecasted to decline in 2. www.google.com
2
2009 . The majority of the revenue in the industry is 3. www.youtube.com
shared by four types of advertising: Search based 4. www.live.com
advertising (44%), Display banners advertising (21%), 5. www.msn.com
Classifieds (14%), Lead Generations (7%) and Rich Media 6. www.myspace.com
(7%) .1 7. www.wikipedia.org
8. www.facebook.com
The industry has four main players: Advertising 9. www.blogger.com
companies and the users who are the same players as in 10.www.yahoo.co.jp
traditional advertisement markets), aggregators of ads
such as Google, Yahoo and Microsoft and finally
aggregators of ad users who host websites with users in
which advertisements are published.
Registered User Base of top 10
Social Networking sites5
– MySpace: 253 Million

Evolution of online advertisement industry: – Facebook: 235 Million
T
– Live: 120 Million
he advertisement providers market continues to
– Habbo: 117 Million
remain concentrated with the ten leading ad-
– Friendster: 90 Million
selling companies still maintaining a 70 percent
– Hi5: 80 Million
market share1. However, the advertisement “platform”
– Tagged: 70 Million
providers’ market is evolving with the introduction of
– Orkut: 67 Million
social networking websites. Traditionally, Email service
– Flixster: 63 Million
providers such as AOL, Yahoo, and Gmail have
dominated this market; however recent survey shows
that the social networking websites are more popular
than the Email service providers3. This is proven by the
fact that six out of the top ten websites are social
networking sites (Youtube.com, Live.com, MySpace.com,
Wikipedia.com, Facebook.com and Blogger.com)4.
Online word-of-mouth advertisement is considered the

form of advertisement with most accountability and as
1 Source: Internet Advertising Revenue Report by IAB and PWC
2 Source: Financial times article “Online advertising hit by spending cut” dated
September 21st 2008
3 Source: Neilson research published in Adweek.com dated 9th March 2009.
4 Source: The top 500 global websites published by Alexa.com on 10th March 2009.
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providing the best return on investment for the advertising companies. Social
networking websites such as MySpace and Face-Book are the largest players in
this form of marketing. Yet, there are still doubts about whether these firms can
generate profits sustainably in the long term, especially with declining revenue
growth due to economic downturn and increasing overhead cost needed to
support their exponential growth in user base. Also, the value proposition of
these websites is based on the size of the user base with practically no
meaningful differentiation in terms of the depth and type of relationship among
the members of the different communities which can be explored by advertisers.
The only competitive advantage of one social networking website over another is
the sheer size of their user base5.
VirtuVill’s business plan and social networking industry:
T
he focus of this business plan is to create a social media website, whose
competitive advantage will not be based on the size of its user base, rather
based on differentiation in terms of depth and quality of relationship
among members of community. Its operating objective will be to avoid
unnecessary overhead cost (such as storage and bandwidth) and maximize the
return on investment per user for itself and also maximize opportunity for our
customers (advertisers) to monetize every member of our user-base. The value
proposition for our customers (advertisers) will be “No user on the web is as
valuable as VirtuVill’s”.
5 Source: Inferred from registered user data provided in Wikipedia.com on 10th March 2009
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VIRTUVILL
1. THE CUSTOMER “Getting customers to spread

the word about a new product
through their social or
V
irtuVill will compete in the online social professional networks is a hot
networking industry. The primary purpose of the strategy in the marketing
service will be to offer a unique service to attract world. Its proponents insist that
and retain high quality and relevant consumers as its the technique--whether online
registered user base. High quality means user who can or face to face--is sure to boost
help maximize the return of advertisement investment of a company's return on
companies who advertise on VirtuVill’s website. It will investment”6
collect data about its users while fully adhering to the
privacy laws and trade this information with the – From Knowledge at
advertisers. VirtuVill will offer a variety of advertising Wharton’s article called
options for its customers; however, its main objective is “First word in Marketing”
to increase the quality and depth of relationship between published on 9th March
2009 in Forbes.com
“VirtuVill will not target adults

who want to find new friends or
relationships through the
online service.”
“It will not target adults who

want to maximize the number
of their online contacts/friends
because VirtuVill’s competitors
provide services which already
cater to this need.”
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VIRTUVILL
“The target customers will be
busy professionals and
members of its user base and become the world best
students who seek an
platform for online word-of-mouth marketing6.
attractive and easy alternative
VirtuVill’s customers will consist of broadly three to the email to enhance
categories: intimate and one to one
interaction with close friends
• Registered users who will use VirtuVill’s core who they find hard to keep in
service offering and also consume ads on its touch with.”
website
• Direct Advertisers (Any company who want to
advertise on VirtuVill’s website).
• Online Ad sellers such as Google, Yahoo,
Microsoft; “...MySpace seems to have
significant revenue because it's
replete with banners for
national advertisers, and it's
Registered Users: become an effective vehicle for
marketers such as McDonald's,
R
egistered users are those who will use VirtuVill’s Toyota and Sony. Add on top of
core service, the core service being social that the site's contextual
networking. The target customer segment of search deal with Google, and
VirtuVill is composed of adults aged above 20 years of MySpace looks like the revenue
age who want a service which will enhance their online winner...”7
communication and interaction with close friends
(Maximum of 8 members). VirtuVill will not seek adults – Michael J. Wolf, former
who want to find new friends or relationships through the president and COO, MTV
online service. It will not target adults who want to networks
maximize the number of their online contacts/friends
because VirtuVill’s competitors provide services which
already cater to this need. VirtuVill will also not seek
users who want to collaborate among a group of
friends/contacts for project or fun activities.
The target customers will be busy professionals and
students who seek an attractive and easy alternative to
the email to enhance intimate and one to one interaction
with close friends who they find hard to keep in touch
with.
Direct Advertisers:
6 Source: The Knowledge@Wharton article called “First Word in Marketing” substantiates this point.
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D
irect advertisers are those who have a direct contractual agreement with
VirtuVill to host their advertisement on VirtuVill’s website. These
customers can be segmented based on sectors, size and by type of
marketing/advertisements they want to conduct in VirtuVill’s website. The details
of segmentation are provided under the Marketing plan. VirtuVill will attract the
different segments of advertisers for different advertisement services which it
will offer such as Banner publishing, Word-of-mouth marketing (especially for
product launch), classified service which are text and pictures based. VirtuVill will
not host rich media advertising such as video or graphics which will require high
bandwidth and storage space.7
Online Ad-sellers:
O
nline Ad-sellers are aggregators of advertisements which they will host of
different websites with a revenue sharing agreement with the hosts. The
main advantage of these customers is that VirtuVill can outsource the
filtering task to them and generate revenue with minimal effort.
7 Source: Forbes article called “Will Social Networks on the web ever make money” by Michael J. Wolf dated
19th February 2009
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VIRTUVILL
I. COMPETITION
“VirtuVill’s value proposition
for registered users is unique
I
n the social media marketing Industry, VirtuVill will and not offered by any existing
compete for user base and revenue from player in the market”
advertisement. Since the online ad-sellers have
unlimited capacity and host their ads on all websites, we
do not compete for this segment of customers. This
section will review our competitors for customers who
are VirtuVill’s registered users and customers who will be “VirtuVill’s value proposition
its direct advertisers. cannot be easily copied by
existing large players since it
offers a value proposition
which is exactly the opposite of
Competition for registered users: that offered by the large
V
irtuVill’s value proposition is unique and is not players. The existing players
offered by any existing player in the market. offer abundance of storage and
Based on implied offering (yet to be tested with allowed friends/contacts where
the actual customers in market) the below chart shows as VirtuVill will intentionally
how VirtuVill’s value proposition will be different from offer Scarcity of storage and
that of the existing offers, to this extent VirtuVill will allowed friends”
have a competitive advantage over its competitors
through a differentiation strategy rather than premium
service or freebies. VirtuVill’s value proposition cannot
be copied by the existing large players since it offers a
value proposition which is the exactly the opposite of
their current offering. The existing large players offer
abundance of storage and allowed friends/contacts while
VirtuVill will intentionally offer Scarcity of storage and
allowed friends. A model based on scarcity does not fit
the strategy of the current large players and therefore
they currently have no incentive to offer a similar
service.
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WHO’S IN Y O U R C L O S E C I R C L E ? !“Every company with at least a
single webpage online is a
competitor of VirtuVill because
a banner can technically be put
up on any webpage of the
world and there are no
restrictions to hosting legal
banners. This a market with
minimal entry barriers”
Competition for direct advertisers:
B
roadly speaking, every company with at least a
single webpage online is a competitor of VirtuVill
because a banner can technically be put up on
“Run-of-site advertising
through online media networks
are driving down yield for
publishers,”8
– Nigel Morris, CEO, Isobar

(digital division of Aegis)
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any webpage of the world and there are no restrictions to hosting legal banners.
This is a market with minimal entry barriers.8
However, the current demand from direct advertisers is not only for banners, but
also for search based advertising, rich media advertising, word-of-mouth
marketing, lead generating marketing, and classified. VirtuVill will not compete
for search based advertising and rich media advertising. VirtuVill intends to
generate maximum revenue from word-of-mouth marketing and lead generating
marketing and for these, the completion can be defined as social networking
websites and email and chat services. The below table provides details of the
current players in the social networking segment who are the most direct
competition for VirtuVill.
9
Name ↓ Focus
Live Spaces Blogging
Facebook General
MySpace General
Orkut General
8 Inferred and Supported by FT article called “Online advertising hit by spending cuts” dated 21st September
2008
hi5
9 Source: “List_of_social_networking_websites” page on Wikipedia.com
General
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V Kontakte General
VIRTUVILL
I. THE COMPANY
"The future is in finding ways

to monetize the online
1. THE SERVICE AND SERVICE BENEFITS community beyond just
traditional web advertising,
T
although it's going to be
he value created by a service equals the
difficult for online communities,
differential between the price the customer is
even those behemoths like
willing to pay and the opportunity cost of creating
MySpace.
that service. Therefore it would be a mistake to even
consider the offering for the user base as a service at all, – Nitin Gupta, Yankee
for, if it is provided to the users free of charge, this Group in Boston, during
‘service’ creates negative value. However, the offering interview for Wharton’s
that Virtuvill provides to the users is an important part of article “Hot Today,
the process needed to create value for our end Gone Tomorrow”
customers who are those that pay for the service
delivered.
Virtuvill provides its customer a portfolio of social "The groundswell is a social

networks consisting of strong interlinks between the trend in which people use
members. Customers can use these networks to diffuse technologies to get the things
their product adoption through word-of-mouth or other they need from each other,
traditional methods such as banners and classifieds. The rather than from traditional
depth of relationships between VirtuVill’s members and institutions like corporations.
the quality of opportunity to monetize each member will The more you know and
be unmatched by any other social networking website. understand the individuals,
VirtuVill will also provide critical information about who make up the groundswell
product champions and networks which best diffuse around your brand and your
market information and information about how this company, the more you can
diffusion occurs. It will provide critical market use the new social networking
phenomenon to your
advantage,"10
– Charlene Li,
Vice president, Forrester
Research.
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intelligence and maximum return on every advertising

dollar spent in VirtuVill.10
The main features of the product are:

“We think social networking is
• A portfolio of networks (Unlike other websites the real deal – the first thing
which merely provide one network with loosely that’s caused people to log on
linked members); to the web more than to check
• Unmatched depth and quality of relationship their email. 55 per cent of the
between members of each network; members of social networking
• Market intelligence about product champions and sites say their online
best networks to diffuse communication; communities are as important
• Market intelligence about how information is as their offline communities.”
diffused.
– Jeffrey Cole, Director,
The details about how these objectives are achieved are Centre for Digital Future
provided under the Operating plan section. at the USC Annenberg
School of
Communication
1. ENTRY STRATEGY
"To create stickiness you must
V
irtuvill will enter the social networking market have functional value and also
primarily by establishing a significant user base. community value. If either of
This will allow VirtuVill to offer a service to its end those becomes diluted, you
customers and generate revenue over a long period of give people a reason to start
time. VirtuVill’s goal in this stage will be to establish a looking elsewhere."11
strong and sustainable (loyal) user base who can be
monetised by the customers. Its strategy will be to – David Bell, Wharton
provide a differentiated value proposition both in terms Marketing Professor
of functional and community value.11
There are two specific issues VirtuVill will address

through its entry strategy. While most social networking
websites like Friendster and Facebook begun entered the
market with a clear focus of which kind of user base they
would build, quickly it was learnt that a majority of their
user base (young teens and members from geographies
with little purchasing power) had little value in terms of
monetising opportunity for customers. They therefore
opened the registration to the entire world in order to
create critical mass. This completely dilutes its user base
concentration. Every social networking site has followed
10 Source: Knowledge@Wharton article “Not a site, but a concept”
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the same strategy and therefore the success of a "I think this idea that you can
website is directly correlated to the quantity of their user have virtually limitless
base and not the quality. Also, given the demographic of numbers of friends does water
the user base, it is often possible that users migrate to down the concept of friendship.
the next fashionable social networking site as soon as I think it's one of those things
one is available. VirtuVill will avoid these two pitfalls where less is more."12
through the following strategy.
– Mark Vernon, Author,
The Philosophy of
Friendship
Community value in VirtuVill:
F
irstly, VirtuVill will brand itself as the place to go to
stay in touch with close friends, to stay in touch
with first inner circle of friends. To ensure that this
strong relationship does not get diluted, it will allow each
member to have only 12 friends at any given point in
time. The number 12 is based on research of the British
anthropologist Robin Dunbar and backed by Mark
Vernon, author of “The Philosophy of friendship”12 If a
user insists on making additional connection, this will be
part of the premium service provided. Each additional
contact will have a fee attached.
VirtuVill’s objective will not be to become the social

networking website with the largest user base. It will
intentionally avoid this goal. The main goal of VirtuVill
for its user base will be to help every user to nurture and
enhance his/her closest circle of friends who they
otherwise find hard to keep in touch with. VirtuVill
understands that this service might not be relevant to
young and teenage users who are only beginning their
intense social interaction at school and therefore need to
keep in touch with as many friends as possible. It also
understands that having more friends at a young age
has been empirically proven to help teenagers succeed
in their careers.12. Therefore, VirtuVill will exclude the
young generation from its membership offer. Its target
audience will be those above the age of 24. VirtuVill will
11 Source for concept of functional and community value:

Knowledge@Wharton article called “MySpace, Facebook and Other social
networking sites: Hot Today, Gone tomorrow?”
12 Source: BBC articles “What’s the ideal number of friends?”
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not however verify the age of each of its members. It will

only require that the members consent and claim that
they are above 24 years of age at the time of “What's happening is that
registration. This will also be controlled because we're separating access from
membership will be based on invitation only basis. notification, this leads to more
sharing because people don't
VirtuVill will also require users to segment their friends worry as much about
based on three different categories which are interrupting others with emails,
geography, profession and interest. This is important for calling attention to themselves
VirtuVill to create and clearly identify multiple networks and appearing too self-
within the same website. With this strategy, VirtuVill will important.”10
indeed create a portfolio of networks with strong links
which can be leveraged by its customers. Each group will – Joe Kraus, Director,
have sub-groups. For example, the geography group can Product management,
have sub groups such as Belgium, California or Beijing. A Google
member can again choose only 12 friends and from a
maximum of 3 sub-groups. This again forces the user to
create strong clusters of friendship networks.
Q. Why does VirtuVill want
VirtuVill intends to create a strong community value with to limit the storage space
the above strategy. With this, it will build a user base available to its members?
who will find it hard to migrate into another fashionable
social networking website. Clearly, VirtuVill will not be A. VirtuVill believes that
the only social networking website which users will sign beyond a certain threshold
up for. The intention however is to let user appreciate limit, irrespective of the
the value which VirtuVill brings through a strong storage space available, users
interaction. This we believe will build loyalty among its are unable to produce relevant
users. and interesting content.
However, users do have an
Functional value in VirtuVill: incentive to post irrelevant of
A
junk material on VirtuVill’s
quick look at VirtuVill’s community value might
servers if they are offered
raise the question about why users might seek
unlimited space. It is similar to
this service from VirtuVill while the email service
the increase in traffic of junk
to a large extent offers similar value. Why would users
email with the increase in
sign up for VirtuVill’s service? The answer lies in
storage space available
VirtuVill’s simple functional value proposition for the
through yahoo mail and Gmail.
online experience. This proposition will be “Intimacy,
VirtuVill will limit its storage
Simplicity and Speed”.
space to minimize traffic of
Firstly, the interface in VirtuVill will be unlike any other junk or irrelevant content.
social networking site. Normally, social networking sites
build a network of people and allow them to interact with
one another as a group. However, VirtuVill will dedicate
one webpage for each connection. For example, if A is
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VIRTUVILL
connected to X, Y and Z, then there will be a webpage Ten differences between

dedicated for AX, AY and AZ through which each VirtuVill and other social
connection can share ideas, thoughts, updates or any networking websites such as
other purpose. These WebPages will be private to the Facebook or MySpace:
users only, for example the webpage dedicated to AX is
accessible only by A and X. To this extent, VirtuVill can 1. Limited number of
be perceived as a stripped down interface of friends allowed
communication compared even to the email programs, 2. Allows only one-to-one
for it does not allow for any other form of communication communication
except one-to-one. VirtuVill does not intend to compete 3. Limited Storage space
with the email service providers, for it will not provide 4. Low customization of
unlimited space in which users can record their web pages
interaction over a period of time. It is only to stay in 5. 13th friend connection is
touch and stay about to date about the lives of each a premium paid service
other. This interface will bring intimacy to social 6. One page for each
interaction like never before. What will be published to contact unlike one page
the community is the list of friends of each member, but for all friends
not about the intimate details of their communication 7. No unsolicited friendship
and interaction with each other. To make friends who are requests
connected at the third degree, users will need to work 8. Most relevant updates of
their way up through all three levels unlike in other the most important
communities in which they can send a random friend friends
request. This again reinforces the quality of connections 9. Not a place to make new
in VirtuVill. friends
10.Not a place to
Secondly, VirtuVill website and webpage will be collaborate as a group
simplistic in design. Customization of web pages will be
allowed but only to a minimal extent to cater to users’
choice of colours and fonts. No rich media or even heavy
photographs can be used as background for the
webpage. The webpage templates will be designed
tastefully and yet not overtly colourful or “jazzy”. The
focus is on the interaction with friends and not on
chasing latest fad with web page designs.
Finally, to ensure VirtuVill is one of the fastest

WebPages, heavy investment will be required to
purchase bandwidth and high performance storage
devices. VirtuVill will also use latest technologies such as
cloud computing wherever it enhances efficiencies.
VirtuVill will adopt policies which are specifically geared
at achieving speed. Some of the measure are restricting
amount of space available for each connection (512 MB),
allowing free embed of videos and rich content from
other websites which means the actual storage is in
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other web servers, placing servers in locations which are

closest to the user base, restricting rich media
advertisement on its WebPages, separating the web Ten differences between
domains used for storing classified advertisements and VirtuVill and email service
those used by regular user base for daily interaction, providers such as Yahoo, Gmail
attracting and expanding user base phases defined by and MSN:
geographies rather than a mass marketing to attract
1. Limited space
worldwide users and also investment in research and
availability
development of its infrastructure with this specific goal.
2. Does not allow to store
With these three specific strategies, VirtuVill will attract history of conversations
users and retain them in the long term. Once the critical 3. Allows only one-to-one
mass is reached, VirtuVill will begin to engage the communication
advertising services. This is detailed in the growth 4. Enhanced interface for
strategy. one-to-one
communication
5. Can only have contact
with limited number of
1. GROWTH STRATEGY friends
6. No unsolicited
V
emails/messages
irtuVill will begin to generate revenue during its 7. Allows passive
first stage through ads provided by ad-sellers communication
such as Google (Ad sense), Microsoft or Yahoo 8. Send messages through
(Panama). In following this strategy, VirtuVill will ensure an update on webpage
that the ads sold do not distract the user base from their such as a blog
original content. This might mean loss of potential 9. Sharing daily update
revenue; however, it is necessary to retain the user base rather than update
for long term. about daily events
Along with the ads posting through the ad-selling 10.Lets members primarily
services, VirtuVill will also introduce the banners posting keep in touch and not
service. The intention again will be to post the most exchange conversations
relevant content on each page and to ensure that they
do no spoil the design of the web-pages. This strategy is
in line with the Simplicity objective of its three fold
functional value proposition... i.e. “Intimacy, Simplicity,
Speed”
VirtuVill’s intention is to inculcate information sharing

culture among its users specifically about purchase
decisions and about opinion formation with respect to a
variety of products/services. To this extent, it will open a
service in its website through which user can seek
advice about products and services from their contacts.
PAGE 19 OF 34
VIRTUVILL
Through the network, the request and reply will follow. The service will be such
that users can only request information about products and services. For other
advice regarding personal information, they will use the regular service such as
blogs and scrap books.
As users begin to use this service, VirtuVill will introduce the classified posting
service. In this service, companies can post their classified ads in VirtuVill’s
Classified ad section. Users in turn can browse through the information and more
importantly also forward the information about classified ads to their network.
This is a specific word-of-mouth service which VirtuVill believes will be more
effective rather than sending ad messages to all users directly.
VirtuVill’s customer’s, i.e. companies paying for posting their classified ads will
only pay a fixed price for posting their ads in the classified section and then a
specific price each time their ad is forwarded by users in the network.
Alternatively, if they feel there will be too many unnecessary forwards, they can
also choose to pay a fixed price for a period of time.
The success of this revenue stream will be important for VirtuVill’s long term
growth.
Finally, depending on the privacy laws and also VirtuVill’s ability to track the
information diffusion pattern, VirtuVill will also trade information about key
contacts who are most suitable as product champions and who will best
accelerate the flow of message through the network. This information is similar
to market intelligence service and will also have a premium price attached.
The above revenue models show an evolution about how VirtuVill can generate
profits through every member of its user base and also every kilo byte of storage
used. The different revenue streams discussed are as follows:
• Ads sold by ad-selling agencies, Banners, Classified, Word-of-mouth

marketing, Market intelligence and Premium services for users to add
additional contacts (this is discussed in the earlier “functional value of
VirtuVill” section).
Grand long term vision of VirtuVill:
V
irtuVill strongly believes that the ultimate market for the social networking
(or Web 2.0 technologies) lies in its potential to change the ways in which
large organizations collaborate. As managers struggle with the increasing
complexity and size of their organization, social networking tools, IF USED
EFFECTIVELY, can change the ways in which companies organize themselves.
This could lead to the next evolution of matrix organizations. Many large
PAGE 20 OF 34
VIRTUVILL
organizations have already begun experimenting with

these technologies to increase collaboration and
knowledge sharing; however, they are attempting to use
the technologies used for collaboration between normal
public (specifically teenagers) and hope that it will
produce benefits in a large organization in which the "The formal organizational
dynamics are different. There is no single tool available structure [in companies] does
which can enhance this participation and yet avoid the not necessarily describe who
pitfalls of unnecessary abuse of web technologies. talks to whom, Even if some
jobs in an organization are
VirtuVill will invest a 10% of its gross margin into
designed to coordinate across
research and development of tools which can be
different functional areas, it's
deployed in creating tools useful for diffusing web 2.0
difficult to figure out who
technologies in large companies. Its objective will be to
coordinates where in reality. So
build the next transformative technology platform,
you ask people directly whom
similar to SAP, for the next generation companies.
they go to for advice and who
Ultimately, VirtuVill’s vision is to change the organisation
gives them the most valuable
structure of every company in the world from matrix or
information to get things done.
hierarchical organization structures to “Virtual Villages”.
Then you map the whole
This will help companies cope with complexity and size
network. Often you find that
resulting due to their inevitable growth plans.13
people you might not even
think of as very valuable turn
out to be important links in the
structure of the organization."13
– Valery Yakubovich,
Professor, University of
Chicago
13 Source: Knowledge@Wharton article called “Connecting the Corporate Dots”
PAGE 21 OF 34
VIRTUVILL
I. THE MARKETING PLAN
1. TARGET MARKET STRATEGY
I
n the previous sections, details about the segment of
users which VirtuVill will attract are provided. This
section will explain the segment of customers (i.e.
who will advertise in VirtuVill’s website will be provided).
After this, we will further refine the definition of user
segments which VirtuVill will attract.
Target largest spenders of online

advertising:
T
he consumer packaged goods and automobile
industry are potentially the two highest spenders
on online advertising. VirtuVill will target these two
sectors to generate the initial revenue. Within the
industry, there are different kinds of players such as
Coca Cola or P&G who are large multinational
organizations with a global advertising campaign and
other local players whose advertising campaigns are
specific to the local markets. Also, these are advertisers
who follow the traditional advertising approach such as
banners and rich media advertising. VirtuVill although VirtuVill’s unique value
can generate value for these segments, cannot match proposition is that it is the best
large social networking sites such as Facebook or platform for word-of-mouth
MySpace simply due to the sheer size of hits they advertising campaign due to
receive on their website. strong interlinks between its
members. Therefore, VirtuVill
will also attempt to capture
market among companies who
Customer’s to whom VirtuVill will provide a introduce new products into
unique proposition: the market frequently.
V
irtuVill’s unique value proposition is that it is the
best platform for word-of-mouth advertising
campaign due to strong interlinks between its
PAGE 22 OF 34
VIRTUVILL
members. Therefore, VirtuVill will also attempt to

capture market among companies who introduce new
products into the market frequently. Some examples of
such industries are high tech consumer goods (due to
constant innovation), online services (like Microsoft or
even other social networking sites), telecommunication
(different consumer solutions in mobile services),
consumer packages goods companies (since they need
to change the product portfolio based on price and utility
“VirtuVill will also target
depending on economic conditions), cosmetics
advertisement spend by
(especially because VirtuVill believes these products can
government agencies since it
sell much more due to word of mouth advertising) and
will help build VirtuVill’s
automobiles (since it is estimated that there will be a
reputation as a reliable and
new wave of innovation in green technologies and they
trusted source of information
will need an effective advertising vehicle to diffuse these
and also contribute to building
products).
networking opportunity.”
Other strategic customer segment targets:
i
rtuVill will also target advertisement spend by
government agencies since it will help build VirtuVill’s
reputation as a reliable and trusted source of
information and also contribute to building networking
opportunity.
Monetize every member of VirtuVill’s user

base:
W
hile of the one hand, companies will generate
revenue for VirtuVill through online advertising.
VirtuVill will also provide premium services for
the members of its user base through which it can
generate revenue. To this extent, VirtuVill will offer
software on its web which can be used to create
banners. This service will be free of cost; however, users
will need to pay a nominal price in order to publish these
ads on the WebPages of other users.
VirtuVill believes that it could tap into a large portion of

local restaurant or local super markets who would like to
use such service. The reason this will be attractive to
PAGE 23 OF 34
It is clear that growth in online
VIRTUVILL display advertising is slowing
W H O ’ S I N Y O U R C L O S E C I R C L E ? !consistent with other
advertising sectors, but not to
the same magnitude. In the
these customers is because VirtuVill will have coming quarters the average
communities based on locations which will be easy to pricing for display advertising
target and generate buzz through word of mouth. may continue to drop
consistent with seasonal
cycles. However, with overall
advertising budgets shrinking,
2. PRICING STRATEGY the need for marketers to have
more accountable advertising
P
could bring more advertising
ricing strategy of VirtuVill will be purely based on
dollars online in 2009 and start
charging for the value that it creates. It will adopt
an upward trend as some
a mix of traditional and innovative pricing models
vertical categories have
to generate revenues.
already experienced.14
For the banners and text ads segment, it will adopt a
– Q42008 Ad index report
price that is equivalent to the prevailing market prices.
by PubMatic
The pricing model will also be exactly the same as other
online advertising which is cost per 1000 impressions
(CPM). The reason it will adopt market prices is because
VirtuVill does not believe that it creates any additional
value in comparison to the other social networking
websites. According to the Q42008 ad price index
published by PubMatic, the current market price for
every 1000 impressions of an ad on a large social
networking site is between $25 cents and $30cents.
The word-of-mouth advertising service in which users

forward specific ads to their friends and therefore have
much higher impact in influencing the purchasing
decision, the rates charged will be based on fixed price
(to create the ad either in VirtuVill’s classified section or
to send the ad to specific users identified as product
champions) and a variable price based on how many
times the ad has been forwarded. In this case, the
variable cost will be priced at 10 times the average
market price since the conversion rate of the advertising
campaigns is much more effective.
This service will also be provided
on an auction basis because
VirtuVill wants to minimize the
number of unsolicited ads sent to
its members and at the same time
maximize the revenue from this
unique service.
PAGE 24 OF 34
VIRTUVILL
14
Finally, VirtuVill also provides premium services to its
members. These prices will be based purely on auctions.
For example, one of VirtuVill’s premium services is to VirtuVill’s strategy will evolve
add friends beyond the allowed number of 12. For this based on data collated for its
service, VirtuVill will periodically auction a certain price elasticity of demand. If
number of additional friends that can be added. For for example, it realises that the
example if the total user base is 100,000 and the customers are highly price
forecasted demand for additional connections is 1% sensitive, it will adopt a
which is 1000, then VirtuVill will auction 500 spots for its different strategy for either
users to bid upon. This way VirtuVill will ensure that its adding more premium service
primary objective of close relationships and strong or adopting traditional pricing
connectivity between its members is maintained and strategies.
also ensure that it generates maximum revenue for each
additional server space that it needs to add. This kind of
pricing strategy will also ensure that VirtuVill will only
attract customers from educated and mature segments
who provide better opportunities for monetization and
avoid segments who would like to join a social
There will be no automated
networking purely for recreational purpose.
message generation on
Further refinement of VirtuVill’s strategy will evolve VirtuVill. When a user signs in
based on data collated for its price elasticity of demand. as a member of the network,
If for example, it realises that the customers are highly the user will receive 12 entry
price sensitive, it will adopt a different strategy for either codes on his webpage. The
adding more premium service or adopting traditional user will need to send his own
pricing strategies. personal message via email,
chat or through phone and ask
his contacts to access the
website through this personal
1. ADVERTISING AND PROMOTION code.
How will VirtuVill attract a user base?
V
irtuVill’s strategy for marketing will be similar to
that of other social networking sites. It will use its
initial adopters to gain additional users. There will
be no automated message generation on VirtuVill. When
a user signs in as a member of the network, the user will
receive 12 entry codes on his webpage. The user will
need to send his own personal message via email, chat
14 Source for Chart and the Quote:”the original online Ad Pricing Index”
Q42008 report published by Pubmatic at www.pubmatic.com, publishing date
Jan 2009
PAGE 25 OF 34
VIRTUVILL
or through phone and ask his contacts to access the

website through this personal code. This increases the
personal touch right from word go because it is not a
automated invitation that his friends receive, rather it is
a conscious decision by the member to use the limited
number (12) codes to connect to 12 of his closest
friends.
VirtuVill believes that it can increase its user base fairly

quickly given the personal nature of the message and
the geometric progressive nature of membership
expansion.
How will VirtuVill attract customer base?
V
irtuVill’s will approach the customers to sell its
advertising space based specifically on its user Sources of Revenue for
base. For example, it will collate data about VirtuVill:
women aged between 30 and 50 in Alabama and send
– Online Ad selling
an advertising brochure to the local supermarkets of that
– Banner Posting
area. Its initial personal contacts will be purely online
– Special project based
and through telephone conversations. It will set up a 24
revenue for diffusing
hour contact service and a telemarketing sales force to
new products/services
sell its products. It will collate data about other
through word-of-mouth
demographics which will be of specific interest to its
– Premium services
other customer segments. Initially, VirtuVill’s strategy
auctioned periodically
will be to limit its marketing budget. It will provide
contact information on its website through which
customers can request details of advertising options. The
telemarketing department of VirtuVill will be one of the
most important functions in order to generate sales of
the ad space.
1. SALES FORECAST
T
here are a number of factors which affect the sales
revenue of VirtuVill. The number of hits that it
receives on the website is one such factor.
The number of hits it receives depends on the following

variables:
PAGE 26 OF 34
VIRTUVILL
– Initial Adopters (IA) -> Number of users who adopt the service initially.
– Number of friends allowed (12)-> This is constant at 12
– Diffusion rate of Membership (DR)-> The rate at which new members
join... for example 80% diffusion means that when the first contact makes
12 friends (contacts), the second level makes 9.6 new members (i.e. 80%
of 12) and the third level brings 7.68 new members each (i.e. 80% of 9.6).
– Average number of visits by each user per week (AV)
– Percentage of Ad Space sold on the website per quarter (ADQ)
– Price of Ad Space per week (ADP)
Revenue from word-of-mouth sales will be project based and will vary based on
how the advertisement message is diffused. Assuming that the message diffuses
on an average to 300,000 users each month, the average revenue for each
project will be a fixed price of $ 1000 + $2.50 for every 1000 members who
receive the message which equals $10000 + $750 = $1,750 per project per
month. Clearly, this will be challenging at the beginning and therefore will not be
the highest revenue generator at the beginning. Based on the effectiveness of
the initial advertising campaigns, the pricing will be changed to generate more
substantial revenues or bundle the product with additional service such as
banners or classified service to up sell other services while providing word of
mouth advertising for a cost price.
The equation for calculating the revenue of each quarter is as follows:
$1000*(number of projects per quarter) + $2.50*(Number of

times the ad is diffused with the network in a quarter)
The Classified ads revenue will depend on the number of classified ads and the
price for each ad. VirtuVill believes it can generate at least 1000 ads each month
at a fixed price of $10 per add + additional revenue generated when these ads
are diffused through word-of-mouth. The total revenue from this service will be a
minimum of $10,000.00 per month.
(Number of classified ads sold per quarter) *(average selling

price of the classified ad space per quarter)
PAGE 27 OF 34
[Type sidebar content. A
sidebar is a standalone
VIRTUVILL
W H O ’ S I N Y Othe
supplement to U R main
CLOSE CIRCLE?!
document. It is often aligned
on the left or right of the page,
Based on the above or located at the top or bottom.
revenue streams Use the Text Box Tools tab to
the sales forecast is change the formatting of the
as follows: sidebar text box.
Below, only the Type sidebar content. A

revenue stream sidebar is a standalone
from ad-selling is supplement to the main
provided since the document. It is often aligned
potential for word- on the left or right of the page,
of-mouth or located at the top or bottom.
advertising and Use the Text Box Tools tab to
revenue through change the formatting of the
auction sale is sidebar text box.]
highly variable.
Revenue amounts
provided are in
USD.
Diffustion Rate
Number o Visits / Week
CHART: NUMBER OF USERS FOR
DIFFERENT SCENARIOS/PERCENTAGE
OF AVERAGE DIFFUSION. NUMBER

OF USERS PROVIDED IN ‘000
PAGE 28 OF 34
VIRTUVILL
I. OPERATIONS PLAN
1. ONGOING OPERATIONS PLAN AND GEOGRAPHIC LOCATION
F
irst and foremost, VirtuVill will acquire the following
domain addresses. Since they are not already
registered, it will be purchased at the market price
of $40. 20 domain names are to be purchased which are VirtuVill servers will be located
VirtuVill.com/.biz/.org/.eu/.edu and .(country names... 15 closer to where the customer
of them) is. These servers will be hosted
in private residences at the
Beyond this, VirtuVill will hire partners who are
beginning. As the operations
engineering graduates and are proficient in Web Design.
scale up and the critical mass
The design and layout of the website is VirtuVill’s key to is reached, a specific data
success in ten initial stages, therefore, it will spend 100 centre adhering to BS 9799
days to design the website. In the mean time, it will also standards will be set up at
set up its servers (in friends’ houses) in California, New each of the 5 locations.
York, Amsterdam, Japan and Bangalore. It is also critical
that VirtuVill acquires five partners for the project who
will be based in western world. The partners will require
exceptional networking and sales experience.
VirtuVill must build clusters of users in the most

attractive geographies (which are United States, UK and
Western Europe and Japan) and therefore it will contact
early adopters in these areas specifically through its
partners.
The operating model will be that the partners in various

countries will help build a quality user base while the It
infrastructure maintenance, web design and back office
functions will be performed in India. The only operating
expense will be those who provide technical work. All
Partners will only hold a stake in the business to be
realised once VirtuVill breaks even.
VirtuVill is currently hiring PARTNERS!
VirtuVill clear understands that hosting a virtual team to

run its operations will have huge risks, especially in
PAGE 29 OF 34
VIRTUVILL
management of the team and holding a unity of opinion.

It will invest in building its proprietary rights and basic
infrastructure for the website and offer partnership only
after it makes a significant progress in the endeavour. If
VirtuVill is unable to find the right partners and a good
partnership terms, VirtuVill will only begin to create
clusters in those geographies where the partner has
been found. If it completely fails to find any partner at
all, it will hire part time employees only for California to
begin with and build its first cluster. Once this cluster of
users has been built, it will then attempt the same cycle
of partner identification. If it fails again, it will then move
to hire the second part time employee in the second
location which will be UK.
Mile Stones!
The mile stone targets for the project are as follows:
– September 2009: Hire two technical resources

– December 2009: Build the website and go live
online
– January 2010: Begin process to build
first user base
– March 2010: Reach target of 1,000 users
– May 2010: Reach target of 50,000 users
– August 2010: Reach target of 100,000
users
– September: Generate revenue through ad
selling
– December 2010: Reach target of 800,000 users
– January 2011: Make first ad sale
PAGE 30 OF 34
VIRTUVILL
I. CRITICAL RISKS
1. MARKET INTEREST AND GROWTH POTENTIAL
T
he service is very well differentiated from the
other social networking websites and email
services and provides a unique online experience.
However, the largest risk is the perception of the service
among users. It could very well be perceived as “just
another face book” or “a rip off of MySpace” or even
worse, it could be perceived as a Facebook with all the
disadvantages of limited contacts and limited storage
space.
In order to overcome this risk, VirtuVill will spend

significant amount of resource to ensure that the original
adopters clearly understand the value proposition. It will
also ensure that its website clearly provides a guided
tour of the service and showcase how the service is
different from the other players in the market.
2. COMPETITOR ACTION AND RETALIATION
I
t is unlikely that the large and established players will
view VirtuVill as a threat since its agenda specifies
that it does not want to become the largest social
networking site. In a way, VirtuVill competes with the
email service providers rather than social networking
sites. However, it is also likely that the large websites
see the opportunity to bundle two different types of
advertising services (i.e. mass advertising and
personalised word of mouth product diffusion) as
lucrative. However, the service VirtuVill will provide will
be specifically based upon the strong relationship
between members of its user base and this cannot be
replicated. VirtuVill to that extent will have a clear
competitive advantage.
PAGE 31 OF 34
VIRTUVILL
3. TIME AND COST TO DEVELOPMENT
R
esearch about inter-linkages and how members
interact and why word-of-mouth advertising is
effective has already reached a critical mass and
attracting significant attention. Current social networking
sites already acknowledge that this is important for them
to monetize their user base. However, they are unable to
do this due to the liability of loose connections and a
large portion of users from less preferred segments. As
these companies identify innovative ways to offer
additional services to the companies, it will become
increasingly difficult for VirtuVill.
Also, the current trend is for users to interface the

websites through mobile phones. VirtuVill will be unable
to foray into this technology quickly unless it builds the
user base at a quick pace. This could be an additional
reason why users will not adopt VirtuVill.
4. PROPRIETARY ISSUES
O
nline business, by nature has very low barriers
for entry. It is conceivable that the large and
existing players can easily spin off a new service
to mimic VirtuVill’s business model either with their own
brand or a new brand name (in order to not dilute their
current image). Therefore, the first mover advantage has
to be capitalised by acquiring users quickly and building
customer loyalty.
PAGE 32 OF 34
VIRTUVILL
I. THE OFFERING AND FINANCIAL PLAN
V
The offer is for 2.08% stake in
irtuVill will be able to reach the critical mass of at
VirtuVill for USD 300,000. The
least 10,000,000 users by the end of year 3 of its
investment is split into 6
operations. With this user base, it expects to have
different stages of 6 months
achieve the below P&L.
each and is applicable based
Total Revenue: upon achievement of mutually
Ad-selling $ 5.5 Mill agreed milestones at each
W-O-M projects $ 4.2 Mill stage.
Auctions $ 35 K
Total Revenue $ 9.7 Mill
Total Costs The currently valuation of
Payroll $ 1.9 Mill VirtuVill is estimated at
Office Space $ 100 K $962,000 at 15 times multiple
Bandwidth $ 30 K of estimated earnings in the
Capex next 7 years.
Compute Servers $ 5.0 Mill
Data Servers $ 1.5 Mill
Total Cost $ 8.5 Mill
The discount rate used in 40%
EBIT $ 1.2 Mill
Gross Margin 12%
Details provided in Appendix 1
The revenue is expected to grow at least at the rate of

5% per annum from year three of operations; therefore
the gross margins will be as follows
Yr 1: $ 0.00 Mill | Yr 2: $ 0.00 Mill | Yr 3: $ 1.21 Mill | Yr 4:
$ 1.27 Mill | Yr 5: $ 1.33 Mill | Yr 6: $ 1.40 Mill | Yr 7: $
1.47 Mill
Discounting these revenues at a discount rate of 40%,

VirtuVill’s present value is 962K. At 15 times multiple,
VirtuVill’s current valuation will be $14 Mill. The offering
is to 2.08% of VirtuVill’s stake for a price of $ 300 USD.
Clearly, there is huge risk in VirtuVill’s success since it is

merely in concept stage. Therefore, the investment
could be made in 6 separate stages of 6 months each for
50,000 USD in each period. The additional funding will
PAGE 33 OF 34
VIRTUVILL
depend purely on expansion of user base since this is

directly correlated to the revenue generating potential of
VirtuVill.
Appendix 1:
Estimated Number of user
Number of Page visits per
Number of Employees
Number of Impressions pe
Number of conversions
Per Impression PAGE 34 OF 34

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VIRTUVILL

WHO’S IN YOUR CLOSE CIRCLE?!

+ 32 486 822 003

II. MARKET ANALYSIS.............................................................................................4

IV. THE COMPANY...............................................................................................10

1. THE SERVICE AND SERVICE BENEFITS....................................................................................10

V. THE MARKETING PLAN.......................................................................................17

1. TARGET MARKET STRATEGY..............................................................................................17

VI. OPERATIONS PLAN...........................................................................................24

1. ONGOING OPERATIONS PLAN AND GEOGRAPHIC LOCATION............................................................24

VII. CRITICAL RISKS..............................................................................................26

1. MARKET INTEREST AND GROWTH POTENTIAL...........................................................................26

VIII. THE OFFERING AND FINANCIAL PLAN.........................................................................28

THE OFFERING AND FINANCIAL PLAN

While MySpace and Facebook

Online advertisement industry grows at

– MySpace: 253 Million

Online word-of-mouth advertisement is considered the

1 Source: Internet Advertising Revenue Report by IAB and PWC

3 Source: Neilson research published in Adweek.com dated 9th March 2009.

VirtuVill’s business plan and social networking industry:

1. THE CUSTOMER “Getting customers to spread

“VirtuVill will not target adults

“It will not target adults who

– Nigel Morris, CEO, Isobar

"The future is in finding ways

Virtuvill provides its customer a portfolio of social "The groundswell is a social

intelligence and maximum return on every advertising

The main features of the product are:

"To create stickiness you must

There are two specific issues VirtuVill will address

10 Source: Knowledge@Wharton article “Not a site, but a concept”

VirtuVill’s objective will not be to become the social

11 Source for concept of functional and community value:

12 Source: BBC articles “What’s the ideal number of friends?”

not however verify the age of each of its members. It will

connected to X, Y and Z, then there will be a webpage Ten differences between

Finally, to ensure VirtuVill is one of the fastest

other web servers, placing servers in locations which are

VirtuVill’s intention is to inculcate information sharing

• Ads sold by ad-selling agencies, Banners, Classified, Word-of-mouth

Grand long term vision of VirtuVill:

organizations have already begun experimenting with

13 Source: Knowledge@Wharton article called “Connecting the Corporate Dots”

I. THE MARKETING PLAN

1. TARGET MARKET STRATEGY

Target largest spenders of online

members. Therefore, VirtuVill will also attempt to

Other strategic customer segment targets:

Monetize every member of VirtuVill’s user

VirtuVill believes that it could tap into a large portion of

The word-of-mouth advertising service in which users

How will VirtuVill attract a user base?

or through phone and ask his contacts to access the

VirtuVill believes that it can increase its user base fairly

How will VirtuVill attract customer base?

The number of hits it receives depends on the following

The equation for calculating the revenue of each quarter is as follows:

$1000*(number of projects per quarter) + $2.50*(Number of

(Number of classified ads sold per quarter) *(average selling

Below, only the Type sidebar content. A

OF AVERAGE DIFFUSION. NUMBER

$1000(number of projects per quarter) + $2.50(Number of