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Fairmarket: Disruptive E-commerce Platform with Unique Revenue Sharing Model

Fairmarket is a groundbreaking e-commerce platform that offers a distinct advantage in the market with its disruptive model and low-risk approach. With a focus on people and fair rates, Fairmarket aims to revolutionize the industry.

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Fairmarket: Disruptive E-commerce Platform with Unique Revenue Sharing Model

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  1. Fairmarket Howard Anderson

  2. Entrep Need: • 1. A Big Idea: $1 Bill + • 2. Distinctive Competence • 3. Unfair Advantage • 4. Low Risk • 5. People • Rate Fairmarket on these attributes

  3. Scott Randell • Expertise: 9 • Need: yes • Disruptive Market • Excess computer equipment • Gouging by brokers. • Obsolete method currently.

  4. Technology: • NT vs. Windows> - strategic or tactical? • $3000 Dell PC vs. $20 K Server • Hosted at Internet company • “Defer Spending Until You Have To” • Finance Model: infancy of e commerce • Unique nature of revenue sharing

  5. Finance Model • Few comparables • 2% on transactions… • $2 Listing Fee • Merchandising Options • No variable expenses, lots of fixed infrastructure epenses. • First round: $1.5/10 stockholders

  6. Auction: • Like: eBay • Competition:FastParts. Draper/Softbank • Café Silica: eBay; OnSale • What killed Nets.Inc(Manzi)? • Searching for the Right Model/Self Service • Ratings Model: +,N, -, Discussion Board

  7. Pricing: • Option 1: 2% • Option 2. 7 = 5 %( • Buyers could still use the old system • Strategic Alliances: CMP ( vs. ZiffDavis)

  8. Vision: Supply Chain to Buyers/Sellers • What does it cost to tie into FM’s system from a buyer or a seller? How do you build a sense of community? • What do you do to grow rapidly? How many buyers? Sellers? What kind of revenue sharing. Broker or Internet company? Switzerland?Advertising driven?

  9. Sell? When? • Build a great company…. Or take some chips off the table. • VC’s? • IPO? • Strategic Partners….. Which would affect FM’s value.$ 5-$10 Million • Expand into other areas?

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