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The Next Stage of Moz:How a tiny Mom + Son consultancy became the world leader in SEO Software, and our roadmap to being Seattle’s next $1 Billion company,[object Object],Rand Fishkin, CEO & Co-founder, SEOmoz,[object Object],July 2011,[object Object]
A Little Moz History (now in color!),[object Object],Deeply in debt, and failing to get traffic to clients’ sites, Rand starts the SEOmoz Blog as part of learning the SEO process.,[object Object],Moz’s collection of tools becomes a singular, campaign-based web app. Prices rise to $99 / $499 / $1999 per month.,[object Object],Rand starts working w/ Gillian building websites for small, local businesses,[object Object],SEOmoz takes an investment of $1.1M from Ignition Partners & Curious Office,[object Object],2004,[object Object],1997,[object Object],Nov. 2007,[object Object],Sept. 2010,[object Object],1981,[object Object],2001,[object Object],Feb. 2007,[object Object],Oct. 2008,[object Object],July 2011,[object Object],Linkscape, SEOmoz’s web index and link graph, launches. By December, moz is profitable.,[object Object],SEOmoz is moving from just “SEO” to social media, content marketing, analytics, local and video. To this end, we’ve acquired “Moz.com.”,[object Object],Gillian (Rand’s Mom) founds the company that will become SEOmoz,[object Object],SEOmoz launches its first subscription software product, “PRO” for $39/month,[object Object],Rand drops out of UW, 2 classes from graduation to work full time w/ Gillian,[object Object],Did you know? At one point, Rand + Gillian had just under $500K in personal debt. By 2007, it was all paid off, thanks to the magical super-awesomeness of SEO!,[object Object]
2011 will be our first 8 figure year, and we maintain margins of 83%+,[object Object],Monthly,[object Object],Visits,[object Object],We took one round of financing in 2007; $1.1MM from Ignition + Curious Office,[object Object],April of 2011, we hit 1.2+MM visits/month and 10K+ subscribers,[object Object],In 2009, we dropped consulting entirely,[object Object],More about our history http://www.seomoz.org/blog/the-story-of-seomoz,[object Object]
How’d We Do That?,[object Object]
News/Media/PR,[object Object],SEO,[object Object],Email,[object Object],Research/White Papers,[object Object],Blogs + Blogging,[object Object],Infographics,[object Object],Comment Marketing,[object Object],Social Networks,[object Object],Online Video,[object Object],INBOUND MARKETING!(AKA all the “free” traffic sources),[object Object],Local Portals,[object Object],Forums,[object Object],Webinars,[object Object],Word of Mouth,[object Object],Social Bookmarking,[object Object],Podcasting,[object Object],Direct/Referring Links,[object Object],Type-In Traffic,[object Object],Q+A Sites,[object Object],Up until 2010, SEOmoz had never spent money directly to acquire customers! (No PPC, no ads, just conferences and content production, aka “sweat marketing”) ,[object Object]
That’s what we want to help othercompanies measure + improve through our cloud-based software.,[object Object]
Macroeconomic Trends that Benefit Moz,[object Object]
Marketing Spend is Still Unbalanced vs. Behavior,[object Object],Via http://www.ftijournal.com/images/uploads/Journal_p6-7.pdf,[object Object]
Organic Marketing is Under-Invested,[object Object],Organic drives 90%+ of traffic,[object Object],(but garners only ~$5 billion of investment in 2011),[object Object],Paid drives <10% of web traffic(but wins a whopping $31+ Billion of investment in 2011),[object Object],Percent of Web Traffic from Various Sources to the Average Website,[object Object],Web Traffic is driven  almost entirely by organic/earned media, yet nearly all of the investment in driving traffic to websites is through paid channels… This is an unsustainable dichotomy.,[object Object]
It’s a Data-Driven World and Efficiency is King,[object Object],These challenges require scalable, high quality software to solve. Very few companies are investing in this space in a serious way, and almost none target the SMB market.,[object Object]
Problem(s) We’re Here to Solve,[object Object]
Organic Web Marketing is Poorly Understood,[object Object],Invest in Content, Search, Social, Local and/or Participatory Online Channels,[object Object],Measure Traffic and ROI Effectively,[object Object],Earn Outsized Traffic/Branding/Customer Acquisition Rewards vs. Paid Marketing Channels,[object Object],Re-Invest in ROI-Positive Channels,[object Object],Even those marketers who have an understanding of the process often get lost in the details or mired in the complexity of tying creative to metrics.,[object Object]
The Web Marketer’s Weekly Analytics Challenge,[object Object],Every week (sometimes daily), web marketers need to log in to each of these services (or a suitable substitute) to collect their KPIs:,[object Object],Many (75%+):,[object Object],Most (~50%):,[object Object],Some (~10%):,[object Object],Google Analytics,[object Object],Bing Webmaster Tools,[object Object],SEOmoz,[object Object],Facebook Insights,[object Object],Google Alerts,[object Object],PostRank,[object Object],Twitter (Topsy/Hootsuite),[object Object],Feedburner,[object Object],FourSquare,[object Object],Google Webmaster Tools,[object Object],Bit.ly,[object Object],Google Local,[object Object],Yahoo! Site Explorer,[object Object],Yelp,[object Object],Why should a marketer log into 10+ sites/tools just to get the basic numbers they need to measure and improve their campaigns? Moz can (and should) put this all in one place.,[object Object]
Specific, Painful Web Marketing Tasks,[object Object],Each of these requires special tools, large amounts of manual labor or custom-built, in-house/agency solutions:,[object Object],Identifying High-ROI Channels,[object Object],Researching New Opportunities,[object Object],Prioritizing + Managing Tasks,[object Object],Optimizing Existing Channels,[object Object],Finding Errors + Problems,[object Object],Training New Marketers ,[object Object],These challenges require scalable, high quality software to solve. Very few companies are investing in this space in a serious way, and almost none target the SMB market.,[object Object]
Our Target Market,[object Object]
Moz has captured an estimated 5-10% of just these 2 circles to date,[object Object],Today, Moz focuses on just the red “SEO” circles. In the future, many more of these will become customer targets. (BTW - I cheated by using two bubbles for “SEO” – sorry about that Venn Diagram purists!),[object Object]
We Help Marketers Who Focus on Organic,[object Object],We believe we’ve captured ~5% of this market as paying customers and ~15% as registered members,[object Object]
Immediate Customer Targets:,[object Object],These titles/job functions represent our current (2011-13) targets:,[object Object],In-House,[object Object],(~55% of current members),[object Object],Consultant/Agency,[object Object],(~35% of current members),[object Object],Independent,[object Object],(~10% of current members),[object Object],Director of Marketing,[object Object],SEO Consultant,[object Object],Blogger,[object Object],SEO Specialist,[object Object],Organic Marketing Consultant,[object Object],Social Media Expert,[object Object],Search Marketer,[object Object],Search + Social Consultant,[object Object],Site Owner,[object Object],Online Marketing Manager,[object Object],Web Marketing Consultant,[object Object],Webmaster,[object Object],Director of Growth,[object Object],Domainer,[object Object],Inbound Marketer,[object Object],These job titles/functions have the most direct use for our current software subscription.,[object Object]
Where are We Today?,[object Object]
2011 Estimated Revenue,[object Object],$12 - $13 million,[object Object],Current Revenue Run Rate (June),[object Object],~$10.8 million,[object Object],Number of PRO Subscribers,[object Object],~13,500,[object Object],# of New Free Trials / Day,[object Object],~100,[object Object],~$900,[object Object],Avg. Customer Lifetime Value,[object Object],~9 Months,[object Object],Implied Customer Life,[object Object],Avg. Cost of Paid Acquisition,[object Object],~$100,[object Object],Avg. Monthly Revenue / Subscriber,[object Object],~$93,[object Object]
% of Free Trials Converting to Paid,[object Object],~57%,[object Object],Churn Rate in 1st 2 Paid Months,[object Object],~25%,[object Object],Monthly Visits to Moz + OSE,[object Object],~1.25 million,[object Object],Email Subscribers,[object Object],~300K,[object Object],~82%,[object Object],Gross Margins,[object Object],~$1 million,[object Object],Estimated Net Profit in 2011,[object Object],Staffing Costs,[object Object],~$650K / Month,[object Object],Crawling, Serving, Hosting + Processing,[object Object],~$180K / Month,[object Object]
Planned Investment Round,[object Object]
Raising:,[object Object],$20-$25 Million,[object Object],Founder Equity:,[object Object],$6-7 Million,[object Object],Onto Balance Sheet:,[object Object],$13-19 Million,[object Object],New Board:,[object Object],2 Investors (Michelle +1),[object Object],2 Insiders (Rand +1),[object Object],1 Independent (TBD),[object Object]
Business Risks,[object Object]
Google Integrates Much More SEO & Social Analytics Functionality in the Short Term,[object Object]
The Web Becomes Less Open,[object Object]
We Fail to Adapt/Grow Fast Enough to Keep Up w/ Organic Marketing Shifts,[object Object]
Our Reputation Suffers Due to Missteps in Culture, Data Quality or Reliability,[object Object]
Use of Funds / Growth Opportunities2011-2012,[object Object]
Serve a Wider Audience w/ Expanded Product,[object Object],Become the Default Productivity + Research Suite for Organic Web Marketers,[object Object],Whatever organic marketers are using to drive traffic and derive value, we’ll help them measure, monitor and improve it with a suite that’s simple enough for anyone but powerful enough to support advanced-expert level practitioners.,[object Object]
2 Year Team Roadmap from 40-100 Mozzers,[object Object],Engineering,[object Object],(Build Amazing $#*!),[object Object],Marketing,[object Object],(Bring in Customers),[object Object],Product,[object Object],(Design the Right Software),[object Object],User Experience,[object Object],Content/Media/Research,[object Object],Broad Web Crawl,[object Object],Design + UI,[object Object],Community Management,[object Object],Rankings Data,[object Object],Local Data,[object Object],Subject Matter Experts,[object Object],PR / Press / Outreach,[object Object],Social Data,[object Object],Wireframing + Specs,[object Object],Events,[object Object],Front End / Web App,[object Object],Testing / QA,[object Object],Paid Acquisition,[object Object],Fresh Web Data,[object Object],Operations,[object Object],(Make Moz Run Smoothly),[object Object],Customer Success,[object Object],(Delight Moz Members),[object Object],Retention,[object Object],(Keep PRO Members PRO),[object Object],Quant + Cohort Analysis,[object Object],API & Higher-Tier Sales,[object Object],Financial + Accounting,[object Object],Email + On-Site Messaging,[object Object],Customer Service,[object Object],Facilities,[object Object],Q&A Assistance,[object Object],Customer Outreach,[object Object],HR/Mozzer Happiness,[object Object]
Sales/Marketing Investments,[object Object],Organic,[object Object],(Grow Free Traffic),[object Object],Paid Acquisition,[object Object],(PPC, Behavioral, Social, etc),[object Object],Branding,[object Object],(Make Moz Known + Trusted),[object Object],Technology Investments,[object Object],Fresh Web,[object Object],(Compete w/ Google Alerts),[object Object],Social Graph,[object Object],(Map the Major Networks),[object Object],Web Crawl,[object Object],(Grow Breadth + Freshness),[object Object],Product Investments,[object Object],Moz Alerts,[object Object],($10/mth competitor to G Alerts),[object Object],Classifying the Web,[object Object],(Employing Human Raters),[object Object],Low Price Model,[object Object],($25/month for lighter use),[object Object]
Potential Acquisitions,[object Object]
Why Moz is Uniquely Positioned to Win the Organic Market,[object Object]
Passionate community of 300K+ marketers,[object Object],#1:,[object Object],#2:,[object Object],Our technology lead is very hard to catch,[object Object],Proven record of 2X+ growth for 4 years,[object Object],#3:,[object Object],Unique, world-changing culture & attitude,[object Object],#4:,[object Object]
We have a rare opportunity to become Seattle’s next $1 billion+ company, and we’d love to have you join us for the ride.,[object Object]

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