SUMMARY

The Business

AdFete , is a newly formed Internet company. We aim to specialise in selling advertising space on User Generated Content and will be based in Bedford. We will carry out work within the UK first before spreading to other English Speaking countries and eventually across the globe.

Pre-Set Up Costs

Before Setting up I will need to find Programmers and Web Designers Who can implement my plans. I am unsure of how much they will cost and will preferably work with them and offer them a percentage of the company for building the initial platform. I will also need to buy an initial corporate website and domain name, this can be done for under £50.

I am also considering launching a specific Cryptoasset for advertise me, so that people can always buy shares in the company or the protocol.I believe this will incentivise people to promote the platform. (AdFete), There are two specific platforms which will be suitable for this called NXT and Bitshares, as they make the sharing of assets simple and the distribution of dividends easy too.

The Team

AdFete will consist of 1 Director, Carl Anthony who will be the driving force behind the corporate and marketing side of the business. AdFete will attract new members by issuing AdFeteAsset (AFA) to people, the highest AFA stake holders will become members of the team, or the council, the format for decision making will be via a voting system. I will need people to head up the following activities, WEB DESIGN, ASSET CONTROL, MARKETING, HUMAN RESOURCES, LEGAL, DEVELOPMENT, SOCIAL, LANGUAGE, DISPUTES, CONTENT CREATERS, PIRACY at this point these duties may be subject to change and none of the positions have been filled. I will be looking for members on an ongoing basis and elections will be held every 1 years to re admit people to different positions within AdFete.

The Proposal

AdFete proposes to provide a platform for user generated content to find advertisers and vice versa. AdFete will use the cryptocurrency Bitcoin to provide automated solutions for small advertising deals as small as $10. The idea is that anybody can buy advertising and also that anybody can sell it. Users will also get to decide how they want adverts represented and this will give UGC creators a revenue stream before they hit the magic 1Million followers mark. For each deal AdFete will take a cut between 4% and 1.5% depending on the user status and volume of advertising. I believe this will revolutionise, news, documentaries and most other forms of media by allowing independents to easily generate funds before and after content is created.

Why Will It Succeed

User generated content is a booming industry at the moment with people creating YouTube videos of everything and anything from Online gaming to tutorials, pranks and video blogging. This alongside the growth of sites like Twitch means that there are plenty of people making plenty of content and also there are plenty of viewers engaged on particular subjects, which makes the advertising possibilities extremely well targeted. The development of cryptocurrencies has made the exchange of money worldwide over the internet extremely cheap and means that even micro transactions for under $1 are feasible. This opens up the opportunity for people to pay small amounts for strategically targeted advertising and product placement. AdFete will use optional escrow for deals between untrusted parties and keep an E-bay like feedback system for public review.
AdFete will ultimately succeed as it has no initial competition for this potentially worldwide platform, which will have an innovative company shares structure, community led development and crypto-currency payment methods.

What the rewards will be

Carl Anthony devised the idea of AdFete in response to what he feels is a massively corrupt media structure where advertisers become beyond questioning by certain media outlets and all news is skewed in the interests of certain organisations, and this is usually to the detriment of society on the whole.

On a less preachy level, the financial rewards will be huge, both on the revenues shared and on holding the associated CryptoAsset AFA, which will surely increase in value as the company becomes a more integral part of UGC and advertising. Dividends will be paid based on the amount of money the company has generated after costs.

Any major risks

The major risk will be in the form of skulduggery from the established media forms. The mainstream media will find reasons for this concept to not succeed and will try to protect their own dominance on media. I believe that the reputation of AdFete will come under fire immediately and the platform will be linked to piracy and as many illegal activities as possible. Questions will be asked about the security and trustworthiness of making deals with content creators directly especially if those content creators decide to stay anonymous, which will be a key feature of the platform. Questions over the owner of the content will also be asked very often and this will need to be addressed in a timely manner so as not to run afoul of the law.

AdFete although is the first concept to enter into the space of advertising marketplace, I believe that the business model is open source and will be very easy to copy, the only defence I propose for that will be the network effect that being the first to move into the space will provide. Initially we will have to work very hard to expand and to innovate so as to make the second mover and our largest threat have to be a very very very good competitor.

Currently there is a monopoly on user generated content, and that monopoly is held by Youtube and Twitch owned by Google and Amazon respectively, if these two companies move to ban AdFete videos then that will put a large dent in our potential audience.

What the reader should do

The 3 main purposes for reading this business plan are to, firstly understand the concept and the direction for the vision, we need to make sure all people involved are trying to push the company in the same direction. Secondly to imagine the opportunities that lay ahead and to find any potential pitfalls for the company in order to forewarn us. Finally to secure funding and grants if available for the company, every little helps. This business plan should also be thought of as a sort of white paper as I believe companies formed in this way are still a new phenomenon and the processes which will be used are state of the art.

INTRODUCTION

Business Background

AdFete is a new start-up business aiming to provide a platform for user generated content creators to deal with advertisers and small businesses directly. The business is the brainchild of entrepreneur Carl Anthony, who after having some successful ventures in the past has decided to move into on-line marketplaces and protocols, which is a booming industry and will definitely prove to be a good industry to be positioned in. The business aims to be based on-line and serve clients worldwide.

The Product

The product will initially be an on-line marketplace together with an exclusive CryptoAsset which will specialise in allowing UGC creators to provide advertising slots and product placement for small and independent companies. UGC creators will be charged a rate between 1.5% and 4% of each deal they do while using the site. Placing adverts on the site will be free as will membership, we may charge a bond for each seller, to avoid people making multiple accounts, and we will also allow UGC creators to remain anonymous. The website interface will be the most important feature of AdFete, It will have to be clean, crisp and most of all familiar. We aim to provide something as close as possible to the layouts of Ebay and Amazon without infringing on any copyrights these companies may have, and it's also important that the platform is not too cluttered although it needs to be feature rich. AdFete will offer sellers a range of content selling options and sales options and this will be supported by offering buyers a comprehensive, fast and customisable search system.

Buyers will get the chance to leave sellers feedback and AdFete will also employ it's own ratings system based on a users views, length of time on the platform, number of deals done and total value of deals done. Ratings will be similar to the format used by BTCJam but the formula will be changed and modified each year if needed.

AdFete Will be Community led and as such forums will play a massive part in social and technical advances for the platform. I aim to start a subreddit and use that as the platforms main forum. I will do this because it will mean that people's credibility and history can be traced back beyond the creation of AdFete if necessary. We may create our own forums in the future if needed.

The AdFete platform will be integrated with AdFeteAsset, which will give anybody in the world the ability to own a stake in the platform as well as act as a dividend producing asset. All purchases on the AdFete platform will be made using Bitcoin this will provide users with optional pseudo-anonymity and also a way to receive tips for free content they may provide to the world. AdFete will also work with either Shapeshift or Coinomat to provide a solution for people wanting to spend all sorts of altcoins. Further to this the AdFeteAsset will also be a share of the company itself, Using the technology created by NXT, holders of AdFeteAsset can use it to collect shares of the company's profit, At the time of writing this the exact design of the AdFeteAsset has not been completed and will need the help of cryptocurrency experts. We want to be able to have voting rights for certain members and coin holders and also veto rights for other members. The exact workings of this have yet to be decided, But with advances in crypto coin, Ethereum, Bitshares and NXT in particular I believe this would be a relatively easy thing to implement.

The Market

Currently the market is in a growth state and changes very quickly. I believe it will continue to grow for the next 5-10 years while internet availability along with easier video production hardware and software will bring user generated content to new highs. Currently online video is hosted in 4 main ways,

• Self hosted for example hosted on the users own website, primary examples of this are demonstration videos to aid the sale of product and small independent video production, this includes but is not limited to pornography which AdFete will have a separate section for adult content which will only be accessible to registered users who have uploaded documents or verified their age via Ardeva.

• Third Party hosted, for example Youtube which now has over 1 Billion users* and Vimeo, these sites allow users to upload videos and will record the views that a video gets along with the comments that viewers have and other information.

• Torrent videos, These are videos being shared p2p by people privately, this has proven to be a very successful medium for independent film makers to get distribution and I feel that this method of distributing will become more and more popular especially as the funding methods for video become increasingly based on free to view models and concepts like AdFete gain traction. It is also worth noting that piracy is an almost unstoppable force and free to view is the only real solution to piracy.

• Streaming Video, This is the final type of video content that AdFete will work with and this will probably be the most difficult to support due to the real time nature of streaming. The majority of on-line streaming comes in the form of on-line gaming, and with commentators often reading comments from related chat rooms, promotions here in audio form will be easy. Watermarking adverts will be more difficult and may not be supported for some time if ever. This will be made even more difficult during reality streaming, which I believe is a phenomenon waiting to occur.

The second Market which needs to be considered is the crypto-currency market, in particular the altcoins market. This is also a market which is experiencing growth although it is generally still not in the public eye, it is an area which many tech investors are looking at seriously. The altcoins market works primarily through the use of exchanges, AdFeteAsset will be available on the main altcoin exchanges, This will give anybody the ability to hold a stake in the company for as long as they like, this will be a dividend producing stake.

Funding

Initial funding will come from Carl Anthony himself, Following this, AdFete will seek to obtain grants from UK and EU bodies. AdFete will also run a funding campaign on either Kickstarter or IndieGo-Go. Shares in the company will then be made available via the AdFeteAsset (AMA) on the NXT asset exchange, A simple way to purchase these assets will be added to the site, along with Tutorials describing NXT and the Asset itself, The IPO price of the asset will be decided closer to the time, and dependent on the interest gathered in the platform. The asset will account for 10% stake in the company. Finally a Bigger Funding round will be held on a Crypto specialising site like Bnktothefuture, This will be done only after The site has been running for a minimum of 12 months so a proven track record can be shown and a more accurate future prediction on profits and dividends can be made. This will account for a further 10% of the company.

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OPERATIONS

Customers

By customers we mean anyone who purchases advertising space on the AdFete marketplace and any UGC creator who makes an account with us. Each customer will be important to us, but more importantly, they will all be important to every member of the community especially the stakeholders, the larger the stake being held the more important the stakeholder will take the customers. I am hoping this will lead to community led q&a style forums and chat rooms for help. This may also prompt stakeholders and UGC creators to make tutorials for new and advanced customers alike. This will form the main crux of user support. Disputes will be talked about later in this section. We aim to deliver a professional and personal service to every customer we serve. We expect our customers to come from around the world, but initially they will have to all be English speaking, at least until we develop foreign translated sites.

Product

We will offer a marketplace for the buying and selling of advertising space and product placement. This will be done alongside a working crypto currency called AdFeteCoin (subject to change), which will allow people to own a stake in the company and allow for the sale of small valued advertising, for as little as $1.

MANAGEMENT

Carl Anthony

PROPOSAL

The selling Pitch

A full selling strategic plan will be implanted as soon as possible to get the business off the ground.

Financials

Cash Flow forecast to be completed.

RISK

Compliance

Compliance is a minor issue for a company like AdFete. On a worldwide level It will be down to the UGC creators to ensure they are paying the correct taxes. AdFete will start life based in the UK but this can be easily changed to move the registered offices to somewhere more tax efficient as the majority of work will be completed on-line. We aim to comply with all legal regulations, red tape and will be sure to keep a close eye on changing legislation. We will have KYC procedures for adult content creators and advertisers

Operational

To be concluded after initial design and set up.

APPENDICES
please see brochure to be completed
please see Proposal letter to be completed