Case Study: Yondle
Yondle.com, Yondle.co.uk and Yondle.tv is an operation within the Firepool Technology Group Ltd business. Yondle is a social network operation that allows its members to swap or exchange products with each other. The company receives its income by way of an advertising fee for entering their product on line and finding a user who wishes to exchange their product with each other.
The service also provides a “buy it now” and “auctioning” feature that allows a user to buy the product at a price to be agreed by each of the participants, or take part in an auction of a product. Each person has to become a registered member of Yondle before they can take part. It is estimated that each person will promote a minimum of 10 products per annum through Yondle or will participate in a number of auctions throughout the year. The initial site will feature the trading of computer games, movies, books and music products. But subsequently will also trade a range of gadgets, including mobile telephones, monitors, computers and many other items.
The market for this kind of service is substantial. The company estimates that it will encourage over 1 million people to join the network at an initial income of £5 million within the first 3 years. The potential revenue is strong and the profit margins are a minimum of 70%. It is the aim of the partners in Firepool to create a Yondle entity in the USA and other European territories. The main operating system has been developed by the company and is now in the beta stage where it is undergoing evaluation of its main component parts.
The company also intend to create a mobile telephone Yondle application so that users are able to swop, auction or exchange products on the move.
Yondle.TV is an online television network that will operate a variety of programs for swapping or exchanging and “buy it now” programs. Through WEB TV connections, it is the intention to develop a range of programs delivered within the network that will encourage an audience to see what the programs can offer them in a diversity of products. The content of the programs will be developed within the types of products to be presented. i.e. Gadgets, Entertainment, Fashion, Music & Films, House wares, and Cooking.
The audience will be able to bid for the products as they are presented. There will also be an interaction with the audience who can ask questions and raise comment about the products on the show. It is intended that there will be a 24 hours a day service for the shows on Yondle.TV, the shows will be replayed a number of times per day. The main income will be from users buying/auctioning the products featured on the programs and also from using the channel as publisher of advertising.
The initial software has been developed by Firepool Technology Group and it is in a beta stage at present. Firepool currently is the owner of the Yondle concept and holds the intellectual copyright in the concept and software product.
