|1||We have partnered with a software company that's allowing Joi to integrate with 50 of their clients.|
|2||The combined revenue of our software partner's clients is well over $100 million.|
|3||Since the Covid crisis began, Direct Sales companies are reporting historic growth in sales.|
|4||Joi is fully built and the partnerships are in place! We just need to complete the integrations.|
|5||Joi will increase sales for Direct Sales consultants by removing friction from the buying process.|
|6||The Direct Sales industry is heavily networked so word about Joi will quickly spread online.|
Michael Stevens is one of the most dedicated, persistent, and adaptable entrepreneurs I have ever met. His focus on improving the opportunity for Joi over several years, by experimenting with different applications and through deep research into the market he is addressing, is a model of how to refine startup ideas into effective applications.
The market for direct sales is large and growing - especially now as ecommerce is accelerating faster than ever, and more people are generating important income by working as direct sales consultants. It is a market typically unserved by larger payment platforms and tools. The problem is simple - too many sales are lost because of a difficult check out - and the solution has the built-in distribution "virality" of consultant chains that could lead to strong growth.
The team plus market size plus distribution method make this a compelling investment opportunity in my opinion, and so I plan to continue investing in Michael and the company.
We have the right product at the right time and for the right market. But that definitely didn't happen overnight... Check out our story below!
Our team originally developed a mobile app that combined live video with e-commerce functionality, attempting to become the QVC of the mobile app industry. Along that journey, we learned a lot about the Direct Sales market and how Direct Sales consultants' buying process was riddled with friction and barriers. Consultants would have to send their customers invoices and take orders manually, which often resulted in lost sales. What a pain! We knew this was a HUGE problem that needed to be solved.
(If you're wondering what "Direct Sales" is, here is a definition: "Direct selling is selling products directly to consumers in a non-retail environment. Instead, sales occur at home, work, online, or other non-store locations." Examples of Direct Sales companies include Young Living, Mary Kay, Nu Skin, etc.)
So, we began trying to help Direct Sales consultants sell their products more efficiently. But we ran into a major roadblock: we would need to integrate with Direct Sales inventory and payment software.
This meant we had to pivot away from the mobile app concept and build an API and bot that integrated with Facebook since that is the preferred platform for Direct Sales consultants to sell their products. This new approach would allow consultants to simply post a picture or video of their product on Facebook with a "buy" button embedded in the post. When customers click this button, the bot would message them in Facebook Messenger and accept their payment. Simple and easy!
We immediately knew this novel approach would greatly simplify the buying process and help increase sales. Thus, the journey to build Joi began...
It turns out Utah has a LOT of Direct Sales companies, so we packed our bags and hit the road to Salt Lake City, UT. It was time to immerse ourselves in research! We spent roughly a year networking and meeting with every single Direct Sales company in the entire state.
This was no easy task, but we learned a ton from this experience. One of the most valuable lessons we learned is that there are basically five software companies that make nearly all the inventory and payments software for the entire Direct Sales industry worldwide. Just five. That means we simply need to integrate with each of these software companies to gain access to nearly every Direct Sales company in the whole world.
So, we naturally contacted and met with these software companies and got one of them to agree to partner with us. This means we could integrate with all of their clients (over 50 Direct Sales companies) and immediately offer Joi to thousands of consultants. Whoo-hoo! Once that happened, we knew we were in business.
Now that we know the problem to solve and how to solve it, it's time to breathe life into the Joi bot. There are roughly 6 million Direct Sales consultants in the United States who desperately need our help, and we plan to deliver the perfect solution. And with more people working at home than ever, we know we're right on time!
Our team is now ready to integrate Joi into the market. But to pull off our master plan, we need a bit more funding to take the ENTIRE industry by storm. We need to raise close to $100,000 to cover the development costs of integrating Joi into the Direct Sales companies' software. This funding will also allow us to teach Joi to speak Spanish :)
Noteworthy: The Direct Sales industry has experienced a MASSIVE increase in sales during the Covid crisis since more people are working from home than ever before. Click here to read an article about this explosive growth.
Joi is essentially a payment processor in the form of a bot. As such, our revenue model is quite simple: Joi charges 20 cents + 5% per transaction. This fee is passed on to the buyer, so the service is free for Direct Sales consultants to use.
How did we come up with that approach? Well, we talked to a LOT of consultants and Direct Sales companies, who all recommended we charge a percentage fee, rather than a monthly subscription. Simply put, these figures are based on a heavy amount of market research. This model also positions Joi to grow at a rapid rate and scale through the industry.
How does this help Joi scale? By deploying an attractive (but healthy) percentage fee, Joi is perfectly positioned to quickly acquire users and process a large volume of payments. It should be noted that every time a buyer purchases products with Joi, our system saves the data (in the form of payment "tokens") so that buyers don't have to type in their payment information for future purchases, even if they are purchasing products from a different consultant who works for a different company! This means companies will be incentivized to use Joi because of the pool of customers we offer.
We'd like is to raise $100,00 so we can integrate Joi with some of the top Direct Sales companies in the country. Our goal is to generate a little over $600k in revenue in the first year, which we believe is an obtainable goal due to our service, team, marketing strategy, revenue model, and timing.
We would greatly appreciate it if you joined us by investing in Joi today! It's been a long road to get this far, but we know we have the right product at the right time and for the right market. Our team has a proven history of working on ways to reduce friction in the buying process, so we feel well-prepared to take on this challenge!
Please contact us today if you have any questions. Thank you!
Joi has financial statements ending December 31 2019. Our cash in hand is $10,776.67, as of October 2020. Over the three months prior, revenues averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $1,866/month.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of our financial condition and results of operations together with our financial statements and the related notes and other financial information included elsewhere in this offering. Some of the information contained in this discussion and analysis, including information regarding the strategy and plans for our business, includes forward-looking statements that involve risks and uncertainties. You should review the "Risk Factors" section for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Joi is a bot that allows Direct Sales consultants to make sales directly on Facebook. This greatly reduces friction in the buying process, which is a solution that is urgently needed in this industry.
In 5 years, we hope to be fully integrated with the 200+ Direct Sales companies throughout the United States. The Direct Sales industry is also popular in South America, Asia, and Europe, so there's plenty of room for international expansion as well. (These are future-looking projections and are not guaranteed)
Given the Company’s limited operating history, the Company cannot reliably estimate how much revenue it will receive in the future, if any.
Booster TV, Inc. was incorporated in the State of Delaware in May 2015.
Since then, we have:
Historical Results of Operations
Related Party Transaction
Refer to Question 26 of this Form C for disclosure of all related party transactions.
Liquidity & Capital Resources
To-date, the company has been financed with $200,000 in debt, $274,500 in equity, and $36,500 in SAFEs.
After the conclusion of this Offering, should we hit our minimum funding target, our projected runway is 12 months before we need to raise further capital.
We plan to use the proceeds as set forth in this Form C under "Use of Funds". We don’t have any other sources of capital in the immediate future.
We will likely require additional financing in excess of the proceeds from the Offering in order to perform operations over the lifetime of the Company. We plan to raise capital in 12 months. Except as otherwise described in this Form C, we do not have additional sources of capital other than the proceeds from the offering. Because of the complexities and uncertainties in establishing a new business strategy, it is not possible to adequately project whether the proceeds of this offering will be sufficient to enable us to implement our strategy. This complexity and uncertainty will be increased if less than the maximum amount of securities offered in this offering is sold. The Company intends to raise additional capital in the future from investors. Although capital may be available for early-stage companies, there is no guarantee that the Company will receive any investments from investors.
Runway & Short/Mid Term Expenses
Booster TV, Inc. cash in hand is $10,776.67, as of October 2020. Over the last three months, revenues have averaged $0/month, cost of goods sold has averaged $0/month, and operational expenses have averaged $1,866/month, for an average burn rate of $1,866 per month. Our intent is to be profitable in 12 months.
Since December 31, 2019, the company has signed an agreement with a software developer to create Joi and has begun creating the platform. It has raised additional capital from existing investors to begin that process. There have been no other material changes to the finances or operations of the Company.
We already have the prior funding to go to market, and we hope to launch the Joi platform and begin generating revenue in 2 months. Within the next 6 months, we hope to have generated revenues of $42k in total and anticipate spending approximately $100k in total on software development costs and marketing the product to direct sales companies and representatives.
The $100k minimum raise on Wefunder will take us to a temporary breakeven point: once the software development is completed, we will begin producing revenue, and can recycle that revenue into marketing and further growth. We intend to raise additional capital to ramp up sales and further development thereafter, which will return us to a net burn temporarily, but we intend to be back to breakeven within 12 months.
We have no other sources of capital on which to rely, although our existing investors continue to support the company actively. We have money left over from prior raises to sustain operations through the Wefunder campaign, having raised an additional $36,500 in October 2020.
The Company will rely on third parties to provide the software to direct sales companies wanting to partner with the Company. There is no guarantee that those third parties will cooperate with the Company to the necessary extent.
The Company may never receive a future equity financing or elect to convert the Securities upon such future financing. In addition, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If neither the conversion of the Securities nor a liquidity event occurs, the Purchasers could be left holding the Securities in perpetuity. The Securities have numerous transfer restrictions and will likely be highly illiquid, with no secondary market on which to sell them. The Securities are not equity interests, have no ownership rights, have no rights to the Company’s assets or profits and have no voting rights or ability to direct the Company or its actions.
Our future success depends on the efforts of a small management team. The loss of services of the members of the management team may have an adverse effect on the company. There can be no assurance that we will be successful in attracting and retaining other personnel we require to successfully grow our business.
The Company will rely on social media platforms to provide a relatively stable technology through which the Company can operate. There is no guarantee that social media platforms will provide such stability or cooperate with the Company.
The Company is incurring technology development costs to develop its core technology. While the Company has detailed estimates for the scope and timing of these costs, there is no guarantee the Company will have the resources to pay for these costs in full.
The Company will face competitors in the future, and those competitors may be better funded or otherwise equipped to operate in this market.
COVID-19 can materially impact our business. It is unclear how long the COVID-19 pandemic will last and to what degree it could hurt our ability to generate revenues.
We may need to acquire or develop new products, evolve existing ones, address any defects or errors, and adapt to changes in technology in order to continue growing our business.
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