www.nuttbook.

com
Take your friend, family member in your nuttshell !
Brief about Social Networking…
• What started off a few years ago as a small community over the internet has today, grown by leaps and bounds and now
encompasses a range of people belonging to all ages, races, countries, and professions. In fact, such is the popularity of
social networking sites that the BIG social networking sites such as MySpace (367%), MSN Spaces (286%), and many others
have grown by over 200-300% each in the last year or so alone!
• The World Wide Web is a powerful tool. It allows people to communicate and connect in ways that simply weren't possible
a few decades ago. You can chat with friends on the other side of the planet, sharing photos and videos while you catch up.
With the Web, you may be able to track down an old friend whom you've not seen in years. You can make new friends or
even find your soul mate.
• Online social networking sites are some of the most popular online destinations right now. These sites tend to package
services together in an organized and attractive way so that users can leverage the Web to make connections with others.
There are hundreds of social networking sites. They range in size from enormous -- like Facebook and MySpace -- to smaller
sites aimed at a specific niche -- like Ravelry, a social networking site for people who like to knit. These sites can bring people
closer together while being miles apart.
• They can also be lucrative projects. Mark Zuckerberg launched Facebook in 2005 -- by 2008 he made the list of the 400
richest Americans with a net worth of $1.5 billion. The husband-and-wife team of Michael and Xochi Birch started the social
networking site Bebo in 2005 as well. Three years later, AOL purchased the site and the couple netted $600 million. A quick
glance at the history of online social networking sites will uncover several other remarkable success stories, too.
• Just because there are a lot of social networking sites on the Web doesn't mean the well is dry. In fact, someone may come
up with a brilliant idea and implementation of a social networking site tomorrow and become the next great innovator of
Web 2.0. That someone might be you. But what does it take to start a social networking site?
• BEBO

• Husband and wife start social networking site. Husband and wife spend a couple of years growing social
networking site to eventually serve 40 million users. Husband and wife sell social networking site to AOL
for $850m. Husband and wife walk away from deal with 70% of the gross payout.
• Yes, Michael and Xochi Birch, a married duo – he a 37-year-old Brit, she a 36-year-old Californian – are
cashing out with a hefty portion of the sale proceeds of BEBO. Roughly $600m. The second largest slice
from the purchase will go to the VC firm Balderton Capital, at the sum of $140m. The Sunday edition of the
Times of London has an in-depth profile of Mr. and Mrs .Birch, discussing their personal history and the
history of Bebo. It’s a fairly interesting read. I recommend.
• A few notes worth mentioning. The Birches met in London, in that classic barroom setting, after Michael
graduated with a physics degree from Imperial College of London. Eyeing the dot-com world with intrigue,
the Birches tried to build a startup. Which proved unsuccessful. And then another. Again, a no-go. A third
attempt met a similar fate. The fourth, however, was where they got a bit more lucky. The first online
business of theirs that proved reasonably fruitful was called BirthdayAlarm, “a simple service that evolved
into an e-cards business.” Didn’t make too much money, on the whole, but enough for the couple to get
by.
• Later, Michael observed the rise of Friendster, and after taking some general cues from the site structure,
he started to code his own version of a social networking website. It went active half a month later. He
called it Ringo. He watched the initial membership climb to 30,000 soon after first launch. Six months later,
he and Xochi sold the site, purportedly due to inability to manage its growth effectively. Sometime
thereafter, Bebo has its beginning, and went live in 2005. It didn’t become an immediate hit. It was aimed
at people in their 30s, which didn’t fly with Web-connected teens.
• After re-tooling a bit, of course, Bebo hit its stride, and the rest, as they say, is history.
• One outstanding point to emphasize in Bebo’s timeline: Its founders discovered the loyalty of the
company’s staff to be very fortuitous, some of which were recruited from more veteran Web companies
like Google, Yahoo, and Microsoft. (A similar story to what we regularly hear in Mark Zuckerberg’s corner of
networking industry.) Indeed, they claim “few (employees) have left the company since it began.” The
strength of its workforce may well have contributed to Bebo’s fortunes and success among much larger
success.
Understanding Social Networking

• Social networking is the latest trend in the virtual space nowadays. Considered as a great way to establish
identity and create brand awareness, social networking is a fantastic internet advertising tool. Though
social networking is about finding newer ways to distribute and share and exchange opinions, information,
resources, amongst other things, with other people using Internet as the medium of choice, it is also a fun
and considerably successful way to start and build our business.
• Imagine the advantages of using such a dynamic and vibrant method to promote your business or better
still, how about starting your own social networking site as a business! Yes, going purely on facts alone,
almost anyone who is internet savvy, visits these websites nowadays. Yes, its true; but that being said, it’s
also true that starting your own social networking site requires some preparation.
Creating a Social Networking Site That Kills Facebook

• The opportunity to overthrow the social networking powerhouse is now greater than ever. Just think, We could be the next
Tom from MySpace or Mark Zuckerberg. Pretty cool, right? Definitely, but We ’re not going to be the next face of social
media without heeding to the advice of successful business moguls of years past.
• American automotive guru Henry Ford once said, “Failure is only the opportunity to begin again more intelligently.” While
these words of wisdom can still be applied over 60 years after his death, they have little to do with social networking. Let’s
face it, Mr. Ford knew nothing about the internet.
• That being the case, when creating a social networking site with intentions of dominating the web, it would be more
appropriate to follow the philosophy of Steve Jobs — “Lesser artists borrow; great artists steal.” Right on, Steve!
• With that in mind, We’re ready to begin your path to social media domination, following in the footsteps of the great minds
before you. I would wish you luck, but you won’t be needing it.
 Crafting a Concept

• The first step to creating the hottest new social networking site on the block is crafting the concept. Before this step can be
achieved, however, you’ll need to prepare. How? Drop out of school (college, high school, middle school… it doesn’t
matter), it will only hold you back. Briefly take note of the features that Facebook embodies or take the concept behind up-
and-coming projects like Diaspora and run with it. With that out of the way, step 1 is complete. What? We’re not actually
innovating here, remember?
Name – www.nuttbook.com
Obtain Venture Capital

Hire Some Employees

With our newly acquired funding, the first thing we want to do is hire employees. We ’re the head honcho now, we can’t be
wasting time actually working. So who will we hire? Well, that’s the best part – our friends. That hot girl from Algebra? Marketing
coordinator. The guy that plays World of Warcraft on his Alienware laptop between classes? Programmer. You get the idea. Be the
cool boss and pay them well. Remember, they’re the core of our operations. Keep them happy with loose deadlines and paid time
off in the event of a gnarly hangover.

Program our Site

It’s time to put your programmer to use. Unfortunately, while he appears to be a massive geek on the outside, he may know
nothing about programming. Fear not, for every problem you encounter, there’s a simple solution. The whole basis of your
social network is taking the ideas of others and putting your own spin on it. Remember, great artists steal. It’s time to put that
into action. Rip the code of your favorite social networking website, slap your brand name on it, and you’re done. If you’re
feeling especially lazy, just use a Facebook clone template.
 www.NuttBook.com
• Nuttbook is a book that is made up of photographs of individuals along with their names.
We can publish at the start of the academic year by the administrations of colleges and universities, with the intention of
helping students, faculty, and staff to get to know each other better.

Nuttbook.com is on online database of everything the old paper and more.

The Business Model

Business model is the mechanism by which a business intends to generate revenue and profits.
It is a summary of how a company plans to serve its customers. It involves both strategy and implementation.
It is the totality of:
• How it will select its customers
• How it defines and differentiates its product offerings
• How it creates utility for its customers
• How it acquires and keeps customers
• How it goes to the market (promotion strategy and distribution strategy)
• How it captures profit
Cont…..

There are many different types of business models as some are more complex than others depending on the service.
A few examples of types of business models are as follows:
• The subscription business model
• The razor and blades business model • The pyramid scheme business model
• The multi-level marketing business model
• The network effects business model

NuttBook fits into the network effects business model, which was pretty common in the dot-com boom of the late 1990s.
This type of business model is based on the network effect which causes a good or service to have a value to a potential customer
dependent on the number of customers already owning that good or service.

• How it will select its customers

NuttBooks's selection of customers is a very important part of the company's business model. Social networking sites have been
on the rise in the last decade and many are in existence today including MySpace, Friendster, and LiveJournal. Most of these
social
networking sites are not very specific and have a variety of users. This fact is what makes NuttBook’s selection of customers so
important.

• How it defines and differentiates its product offerings

The second aspect of a business model is how the company defines and differentiates its product offerings.
What makes a student with an existing MySpace account want to register with Nuttbook? The answer to this question lies in how
Nuttbook sets itself apart from other social networking sites.
• How it creates utility for its customers

The utility that Facebook creates for its customers is essential in creating traffic. Online social networking companies like
Friendster have failed in the past for being too one-dimensional and unreal. Facebook was able to recognize these mistakes and
capitalized greatly in forming a very real online social network. In theory, the services provided by these two companies are very
similar. The difference is what makes the individual keep coming back to the site. On Friendster you can browse through various
people's profiles and add them as friends but the likelihood of you actually meeting these online friends is very small. Facebook,
on the other hand, is the opposite. With the number of participating schools and users climbing, it is not rare to see someone
online prior to meeting them in person. Facebook is useful in a variety of ways including:
• Forming study groups
• Finding roommates
• Keeping in touch with friends at distant schools
• Finding others with like interests
• Keeping up with social events
• Getting information on fraternities/sororities

• How it acquires and keeps customers

The statistics are almost unbelievable:

5M+ registered users
coverage of 45% of US colleges (a total of 2,000 - representing 8M students)
80% penetration among students of colleges that are on the platform
Cont….
10th most visited Internet site in the US
5.5B page/views a month (230M page/views a day) •
8.5M unique visitors
signing 20,000 new users a day
repeat usage: daily 70%, weekly 85%, monthly 93%

Keeping the customers is a very easy task once they are on Nuttbook. Users continue to visit the site to partake in one of the
newest activities, “Nuttbooking." Nuttbooking defined is the act of simply browsing though facebook.com with no specific
purpose. The degree of which Nuttbook is used as a means of communication requires that it be checked on a daily basis.
Throughout the course of the day one can get messaged, poked, or have their wall written on. Also, with the new photos feature,
one can get tagged in a picture by one of their friends. There are so many places where something new to one's profile can occur,
and this makes it very addicting.

• How it goes to the market (promotion strategy and distribution strategy)

Distribution Strategy

Distribution strategy is the key element behind the idea, the internet. Nuttbook will provide a service that connects college
Students through a few clicks of the mouse. This strategy is not new as it's used by many social networking sites. In today's busy
world, people don't have the time and effort to put into physical networking with others. Companies such as MySpace and
Friendster use this same idea which has been proven to be successful.
Promotion Strategy

The promotion of the site has been mostly by word of mouth, as current users rave to their friends about the site and its many
features. Publicity in the media has also helped the company's promotion along. There have been a number of newspaper
articles
as well as television interviews documenting the recent success story.

• How it captures profit

Banner ads, sponsored groups, and text announcements. Apple has its own sponsored group called "Apple Students" where it
lists the hottest items, prices, and even gives away free stuff. Electronic Arts and Geffen Records sponsor groups on the site as
well. Text announcements, which are more geared toward students who want to announce a party or event, are sold regularly for
$9-$15 and guarantee a certain number of hits. Banner ads are easily sold to many major companies including the three listed
Above.

• Conclusion

Nuttbook has a very specific and strong business model that will bring the company continued success in the future. The site will
grow every day in many categories and will draw more attention.
Launch Da Site
 Market and Profit

With our network launched and millions of new users flocking to it by the day, it’s time to profit. How?

Load it up with advertisements, duh. Much like privacy controls, users do not mind excessive advertisements.

How do you think Zuckerberg pulled billions in revenue?

Unlike Zuckerberg, however, we’re going to pull out all of the stops: pop ups, banners, contextual ads, etc. This will
ensure that our site earns at its full potential. Also, it will work to enhance our site by giving our users access to awesome
IQ quizzes and free trial weight loss products. With our ads intact, feel free to sit back and watch both visitor satisfaction
and profit margins increase.
MARKETING OUR SITE

• Once we've got our social network site up, We will have to put most work into marketing it.
• To come along, people have to know we exist. Think about how we're going to promote it.
• Press releases, contacting the newspapers, maybe we can get onto the Breakfast News or TV.
Perhaps we want to do some crazy publicity stunt. But we have to get the message out
somewhere. • Self-Serve Advertising
• Engagement Ads
• USP: What is our Unique Selling Point? Why should people join your site rather than others? • Microsoft Banner
Advertising Agreement
& Search
• Think about what we're offering, it has to have something a bit different to the rest. Niche sites • Virtual Goods And The
are the way to go. A niche could be based on your region or your country - or it could be based on Gift Shop
some interest or a grouping of any other demographic. Having a niche and a USP is going to be • Nuttbook Credits
the reason people choose to join you instead of, or as well as, the more well known sites.
• How we can make money?

We will give away free accounts and make money.

Adds will be seen on our homepage?
Yes, that’s where the mystery lies- Advertisements generates bundles of cash through its ads. We want to promote
our business, want to reach to millions of users,

We’ll create Nuttbook ads, get millions of views, and just pay them a little. Facebook is intelligent – if the user have
mentioned that he/she is a fan of Adidas, then they probably like sports. Ads related to sports will start showing
up.
Which ad is shown to which user depends on the likes and dislikes of that person’s data saved on the profile.

Another way Nuttbook can make money by sending a virtual gift! The “send a gift” option is a big incentive for
those who want to send a virtual gift to their friends and family. The revenue goes to Nuttbook!

One of the most important methods of generating revenue is through the different applications which sell through
the Facebook platform. Take ‘Farmville’ for example – a game launched on Facebook which allows users to
maintain their virtual farm. The parent company, Zynga, is getting a lot of traffic through Facebook. Of course,
Facebook takes a ‘rental fee’ from the revenue generated by the game. Companies like Zynga increases their user
base, and Facebook eats a slice of their pie.
Revenue Model of Facebook
• Factsheet about Facebook

About Facebook
Founded in February 2004, Facebook is a social utility that helps people communicate more efficiently with
their friends, family and coworkers. The company develops technologies that facilitate the sharing of
information through the social graph, the digital mapping of people's real-world social connections. Anyone
can sign up for Facebook and interact with the people they know in a trusted environment.

Product

Facebook, the product, is made up of core site functions and applications. Fundamental features to the
experience on Facebook are a person’s Home page and Profile. The Home page includes News Feed, a
personalized feed of his or her friends updates. The Profile displays information about the individual he or
she has chosen to share, including interests, education and work background and contact information.
Facebook also includes core applications – Photos, Events, Videos, Groups, and Pages – that let people
connect and share in rich and engaging ways. Additionally, people can communicate with one another
through Chat, personal messages, Wall posts, Pokes, or Status Updates.

Technology

Facebook is one of the most-trafficked sites in the world and has had to build infrastructure to support this
rapid growth. The company is the largest user in the world of memcached, an open source caching
system, and has one of the largest MySQL database clusters anywhere. The site is largely written in PHP
though the engineering team developed a way to programmatically transform PHP source code into C++ to
Cont….
gain performance benefits. Facebook has built a lightweight but powerful multi-language RPC framework
that seamlessly and easily ties together infrastructure services written in any language, running on any
platform. The company has created a custom-built search engine serving millions of queries a day,
completely distributed and entirely in-memory, with real-time updates. Facebook relies heavily on open source
software and releases large pieces of its own software infrastructure as open source. See
http://facebook.com/engineering and http://facebook.com/opensource.

Platform

Facebook Platform is a development platform that enables companies and engineers to deeply integrate with the
Facebook website and gain access to millions of users through the social graph. Facebook is a part of millions of
people’s lives all around the world providing unparalleled distribution potential for applications and the
opportunity to build a business that is highly relevant to people’s lives. More information can be found at
<http://developers.facebook.com>.

Privacy, Safety and Security

Facebook has always focused on giving people control over their experience so they can express themselves freely
while knowing that their information is being shared in the way they intend. Facebook's privacy policy is TRUSTe
certified, and Facebook provides simple and powerful tools that allow people to control what information they
share and with whom they share it. More information can be found at
http://www.facebook.com/privacy/explanation.php. From its beginning, Facebook has worked to provide a safe
Cont…
and trusted environment by, for example, requiring that people use their real names. Facebook also works with
online safety experts around the world and has established a global Safety Advisory Board that it consults with on
safety issues. More information can be found at http://www.facebook.com/fbsafety and
http://www.facebook.com/security.

• Funding
• Round one: $500,000 from Peter Thiel, Summer 2004; Round two: $12.7 million from Accel Partners, April
2005; Round three: $27.5 million from Greylock Partners leading the round, Meritech Capital Partners
participating, and Accel Partners and Peter Thiel increasing their investment in the company.

• Board
• Members: Mark Zuckerberg, Marc Andreessen, Jim Breyer, Don Graham, Reed Hastings and Peter Thiel;
Observer: David Sze; Observer: Paul Madera

• Employees
• 2,000+

• Users
• Over 750 million active (users who have returned to the site in the last 30 days)

• Offices
• Headquartered in Palo Alto, Calif. U.S. offices: Atlanta; Birmingham, Michigan; Chicago; Dallas; Detroit; New
York; Venice Beach, Calif.; Washington, DC; Austin International offices: Dublin; Hamburg; Hong Kong;
Hyderabad; London; Madrid; Milan; Paris; Selangor; Singapore; Stockholm; Sydney; Tokyo; Toronto;
• Facebook Statistics

People on Facebook
More than 750 million active users
50% of our active users log on to Facebook in any given day
Average user has 130 friends
People spend over 700 billion minutes per month on Facebook

Activity on Facebook
There are over 900 million objects that people interact with (pages, groups, events and community pages)
Average user is connected to 80 community pages, groups and events
Average user creates 90 pieces of content each month
More than 30 billion pieces of content (web links, news stories, blog posts, notes, photo albums, etc.) shared each
month.

Global Reach
More than 70 translations available on the site
About 70% of Facebook users are outside the United States
Over 300,000 users helped translate the site through the translations application

Platform
Entrepreneurs and developers from more than 190 countries build with Facebook Platform
People on Facebook install 20 million applications every day
• Cont…
Every month, more than 250 million people engage with Facebook
on external websites. Since social plug-ins launched in April 2010, an
average of 10,000 new websites integrate with Facebook every day
More than 2.5 million websites have integrated with Facebook,
including over 80 of comScore's U.S. Top 100 websites and over half
of comScore's Global Top 100 websites

Mobile
There are more than 250 million active users currently accessing
Facebook through their mobile devices. People that use Facebook on
their mobile devices are twice as active on Facebook than non-
mobile users. There are more than 200 mobile operators in 60
countries working to deploy and promote Facebook mobile products
• International growth at a frantic pace

Facebook has developed a strong following in English-speaking

countries
A third of the Canadian population has joined Facebook as of
June2007, a growth of more than3,000% in a year.
The United Kingdom is the third largest country with more than 5
Million active users, London being the largest network on
Facebook (1,105,515 members as of Sept. 11 2007).
There is farless growth in Europe and Asia as the website is only
available in English
To act against knock offs who took advantage of Facebook’s lack of
international compatibility, a major localization initiative will be
launched soon: The website will be translated and therefore
accessible to users from other countries
• Sell Your Site

After milking the pockets of visitors and advertisers worldwide, you will soon be faced with the harsh reality of declining profits.
At this point, it’s important not to panic; this is actually the moment you’ve been waiting for. Really? Yes, really. It’s time to sell
your site off to a company that has the power to bring new life to it.
You’ll be faced with a tough decision, but ultimately, it’s in your best interest to sell to a company that has proved to be successful
in such endeavors. Popular choices include AOL and Fox Interactive Media. Settle for no offer below $500 million.