Watch, Learn, Take Financial Action Holly P Pressman Co-founder FinLit窶認inancial Literacy holly@FinLit.com
80% young adults not adequately prepared to deal with money 2
90 million adults on their personal finance knowledge
3
Overwhelmed 4
A financial education media company that helps young adults take action with short Financial Literacy Clips (FLiCs) 5
FinLit is a financial education media company focused on short videos for young adults 6
23 1st job $28K student loans $4.5K credit card debt
7
WSJ 6/25/13 Twenty-Somethings Less Financially Independent “Significantly fewer 20-29 year-olds say they feel financially successful compared to 2011.� 8
Existing resources don’t work 9
Competitors try to educate but fail to help people take immediate action
10
23 1st job $28K student loans $4.5K credit card debt
11
12
Finds FLiC (Financial Literacy Clip) that answers question
13
Watch on FinLit.com or YouTube Channel
14
Takes action with a student loan consolidation
FinLit receives affiliate fee 15
Common Problems
FLiCs on each Topic
Take Action
• Student loans
• Loan consolidation
• Credit cards
• Repayment plan
• Budgeting
• Track spending
• Investing
• Open investment account 16
Short videos work
17
Affiliates and advertising revenue model
18
Monetize when users take action online investment manager
Affiliate Fees: $25 to $250 student loan consolidation
alumni funded student loans
19
Compelling market opportunity $16.0
$14.8 $13.4 $11.7
($ in billions)
$12.0 $9.4
$6.7 $6.4
Financial Provider Digital Advertising
$5.9
$8.0 $5.3
Online Video Advertising
$4.0 $4.1
$5.8
$7.0
$8.0
2013
emarketer.com
2014
2015
2016 20
Underserved target market 74 million millennials
Initially targeting ~10 million seniors and recent grads 21
1. Short FLiCs
2. Campus Events
User Acquisition
3. Distribution Partners Bloggers and Non-profits
4. Online Advertising 22
1. Short FLiCs
30% Created / 70% Curated SEO friendly Current costs < $100 / FLiC
23
2. Campus Events
Piloting in northeast Target clubs with many members Yield 75 to 100 sign ups CAC - $0.40 24
3. Distribution Partners â&#x20AC;&#x201C; Bloggers and Non-profits
Starved for video content 150 bloggers in Year 1 to yield 50 to 75 sign ups each Leverage non-profits user-base 25
4. Online Advertising
Target sites young adults frequent (Facebook, YouTube, Tumblr, Twitter) CAC - $0.50
26
Year 1
Year 2
Number of Users
105,807
547,198
1,372,787
6,192,187
Revenue
$59,362
$895,020
$3,247,861
$23,481,940
Gross Margin
N/A
User Acquisition Cost EBIT
$83,423
Year 3
54.6%
79.6%
$424,929
85.8%
$819,900
$3,298,136
($445,982) ($322,089) $1,066,124
$15,165,558
EBIT Margin
N/A
N/A
32.8%
64.6% $25
6
$20
5 4
$15
3
$10
2
$5
1 -
$0 1
2
3 Year Number of Users
4 Revenue
Revenue ($ in millions)
7 Users in Millions
Year 5
5 27
Watch, Learn, Take Financial Action
Selected Sources 2012 Visa Financial Literacy Barometer 2013 NFCC Consumer Financial Literacy Survey Bank of America, September 2013 OECD Global Policy Research Symposium to Advance Financial Literacy 10/31/13 Consumer Financial Protection Bureauâ&#x20AC;&#x201D;Navigating the Market: A Comparison of Spending on Financial Education and Financial Marketing 11/18/13 WSJâ&#x20AC;&#x201D;Twenty-Somethings Less Financially Independent 6/25/13 29