iConsumer’s deck outlines a strategy to disrupt the traditional cash-back loyalty market by offering equity in a public company as the primary reward. By utilizing Regulation A+ crowdfunding, the company aims to build a base of 1 million members by late 2019, projecting $50 million in annualized revenue. The model relies on a commission-sharing arrangement where retailers pay 1-20%, and iConsumer retains a 20% gross margin. The deck is heavily focused on the mechanics of a public listing and the psychological appeal of ownership to millennials. While it provides a clear pro forma forecast and…
Key takeaways
- The core value proposition is that ownership is the ultimate loyalty program, turning customers into public company shareholders (Slide 1).
- The business model operates on a commission split, typically 80/20, where iConsumer retains a 20% gross margin from retailer commissions (Slide 4).
- iConsumer targets millennials by addressing their perceived disenfranchisement and debt burdens through 'social benefit' investing (Slide 3).
- The roadmap includes a specific $1,500,000 raise under Phase IIIb to fund a member acquisition campaign (Slide 6).
- Financial projections target 1 million members by December 2019, generating $50 million in annualized revenue and $5.5 million in net profit (Slide 7).
- The exit strategy is unconventional, focusing on an immediate Regulation A+ SEC qualification to make stock freely tradeable on the OTC QB (Slide 8).
- The executive team features founders with significant exits, including iGive.com, eComXpo, and Onebox (Slide 9).
- The deck explicitly mentions a CrowdfundX campaign with a minimum investment of $100 per investor (Slide 6).
iConsumer Pitch Deck Analysis
iConsumer presents a business model that bridges the gap between affiliate marketing and equity crowdfunding. By leveraging the JOBS Act and Regulation A+, the company attempts to solve the loyalty problem by giving customers a literal piece of the company. This teardown examines the 10 slides provided from their 19-slide investor deck.
Slide 1: Title and Vision
The deck opens with the logo and the tagline: "Ownership Is The Ultimate Loyalty Program." This is a strong, thematic opening that immediately differentiates the company from traditional cash-back sites like Rakuten or Honey. It sets the stage for a narrative centered on the psychological and financial benefits of equity over simple rebates.
Slide 2: The 'How'
Slide 2 outlines the strategic approach. It focuses on three pillars: taking share from incumbents by offering ownership, allowing customers to earn that ownership through shopping, and expanding the market to millennials. The phrase "playing the Wall Street game for no cash" is used to describe the appeal to younger demographics who may feel priced out of traditional investing.
Slide 3: Growth Opportunity and Millennial Focus
This slide serves as the 'Problem' or 'Market Opportunity' slide. It characterizes millennials as "disenfranchised," "burdened by debt," and "scared to invest" due to the 2008 recession. iConsumer positions itself as a solution that offers "personal gain & social benefit," catering to digital natives who are "pinched for money." This is a psychological play, suggesting that the barrier to entry for investing is the primary friction point they are removing.
Slide 4: The Business Model
The business model is presented in a clear four-step process. First, members shop at 1,700+ retailers . Second, retailers pay a commission of ~1-20% . Third, consumers earn stock as they spend or refer others. Fourth, iConsumer shares the commission with the member in an ~80/20 split , resulting in a 20% gross margin for the company. This slide is effective because it provides hard numbers for the margins and the scale of the retailer network.
Slide 5: Phased Growth - History
Slide 5 provides a timeline of past achievements, marked as "Complete." It shows that Alpha began in June 2015, followed by message testing and the launch of apps, the site, and browser add-ons. Beta began in January 2016, which included testing viral growth and member acquisition. This establishes that the product is not just a concept but a functioning platform with early testing data.
Slide 6: Phased Growth - Future Raise
This slide details the upcoming $1,500,000 Raise (Phase IIIb). It outlines a member acquisition campaign via CrowdfundX with a minimum investment of $100 per investor . The goal for this round is to achieve a valuation double that of the prior round, priced at $.09 / share, preferred . It also mentions a goal to qualify for the OTC QX to attract institutional investor interest. This is a highly specific 'Ask' slide that links capital directly to acquisition milestones.
Slide 7: Pro Forma Operating Forecast
The financial forecast is broken down by membership levels rather than just years. It projects growth from 12,000 members (Nov 2016) to 1,000,000 members (Dec 2019) . Key figures include:
Annualized Revenue: Scaling from $2,000,000 to $50,000,000. · Gross Margin: Reaching $10,000,000 at the 1M member mark. · Annualized Net Profit: Turning positive at the 250,000 member mark ($950,000) and reaching $5,500,000 by late 2019. · Total User Acq. - Cash: A significant jump from $1,000,000 to $50,000,000 as they scale from 50k to 1M members.
This slide is dense but provides the necessary transparency regarding how the company expects its unit economics to scale with its user base.
Slide 8: Exit Strategy
Unlike most startup decks that hint at an acquisition by a tech giant, iConsumer’s exit strategy is a public listing. It highlights "Going Public – Reg. A+: SEC QUALIFICATION" and the expectation that investors will have "FREELY TRADEABLE STOCK." The timeline points to an OTC QB listing expected by Q1 2017 . This aligns with the company’s core philosophy of democratizing ownership.
Slide 9: Executive Team
The team slide is strong, emphasizing prior exits. Robert Grosshandler (CEO) founded iGive.com in 1997 (which the slide notes has 350,000 members) and sold eComXpo in 2008. Sanford Schleicher (CTO) was the Chief Architect of Onebox (sold in 2000). Melinda Moore (CMO) was the CMO of Crowdfunder and co-founded LovingEco (sold in 2012). The pedigree here suggests a team that understands both the affiliate shopping space and the mechanics of startup exits.
Slide 10: Contact and Legal Disclaimer
The final slide provides contact information for Robert Grosshandler and includes a mandatory SEC disclaimer. The disclaimer links to the actual SEC Edgar filing , which is a level of transparency rarely seen in standard private pitch decks. It reinforces the fact that this is a regulated offering.
What iConsumer Does Well
The deck is exceptionally clear about its business model and margins . By stating the 80/20 split and the 20% gross margin on Slide 4, they answer the most common investor question immediately. The use of a Regulation A+ framework as a marketing tool is also clever; they aren't just raising money; they are using the raise to acquire the very customers who will drive the platform's revenue. The team slide is another high point, as it demonstrates that the founders have successfully navigated the specific industry (affiliate/loyalty) and the exit process multiple times.
What is Missing from the Deck
While the pro forma is detailed, the deck lacks current traction metrics beyond the mention of the Alpha and Beta phases. We see what they expect to happen at 12,000 members, but we don't see their actual CAC (Customer Acquisition Cost) or LTV (Lifetime Value) from the Beta phase. Additionally, there is no competitor analysis slide. While they mention "incumbents," they don't name them or explain why a user would choose iConsumer stock over the immediate gratification of cash-back from a competitor like Ebates (now Rakuten). Finally, the tech stack is not mentioned, which is relevant for a platform managing complex equity distributions for potentially millions of users.
Founder Takeaways
Founders should look at Slide 7 as a model for milestone-based forecasting . Instead of arbitrary dates, tying revenue and costs to user milestones (12k, 50k, 250k) makes the projections feel more logical and tied to growth levers. Furthermore, if you are raising via crowdfunding, Slide 6 shows how to integrate your 'Ask' with your marketing strategy . iConsumer treats its investors as its best customers, a strategy that can significantly lower the cost of capital and increase brand loyalty simultaneously.
Frequently asked questions
- What is iConsumer's primary revenue stream?
- According to Slide 4, iConsumer earns commissions from over 1,700 retailers. These commissions typically range from 1% to 20% of the transaction value. The company also mentions potential additional revenue streams from advertising and data mining, though these are not quantified in the pro forma forecast.
- How does the equity reward system work for customers?
- Slide 4 explains that as consumers spend money through the iConsumer platform, they earn stock in the company. Additionally, members can earn shares by referring other customers to the platform. This is designed to create a 'Wall Street game' for no cash, appealing to those who want to invest without upfront capital.
- What are the company's growth targets for 2018 and 2019?
- Slide 7 projections show a target of 250,000 members by January 2018 with $12.5 million in revenue. By December 2019, the company aims to reach 1,000,000 members and $50 million in annualized revenue, which they expect will yield a $5.5 million annualized net profit.
- What is the significance of Regulation A+ in this deck?
- Regulation A+ is central to the iConsumer strategy. Slide 8 and Slide 10 indicate that the company is seeking SEC qualification to allow for a public offering where shares are freely tradeable. This allows them to market the investment to non-accredited investors (customers) with a low entry point of $100.
- Who is leading the company and what is their track record?
- The team, detailed on Slide 9, is led by Robert Grosshandler (CEO), who founded iGive.com and sold eComXpo. CTO Sanford Schleicher was also at iGive.com and co-founded Onebox (sold in 2000). CMO Melinda Moore brings experience from Crowdfunder and previously sold LovingEco in 2012.
