Lean Canvas Example: Facebook - Advertisers + College Students

Problem 1 Solution 4
Unique Value 3
Unfair Advantage 9 Customer Segments 2

Proposition
Instead of trying to High user engagement
Existing online social networks College Student
create a new social Connect and Share through network effects
fail to deliver on core promise
network, remove friction with Your Friends (Not translates to more clicks
#user
and are characterized by: Advertisers
from pre-existing social Strangers) #user for advertisers
1. Friends as badges networks such as those #customer #customer
versus true friends on college campuses. Reach a highly
2. Low quality of segmented audience
conversations Key Metrics 8 of active users with a Channels 5 Early Adopters
3. Low user engagement high ROI #customer
$100m valuation in  Viral usage model Ivy league schools
Advertisers want a highly #user starting with Harvard
targeted and active audience. 2 years
 Seed ivy league University
#customer
#customer traction HIGH-LEVEL CONCEPT schools #user #user
metric: Impressions,  Auction based Advertisers that want
Existing Alternatives
clicks, conversion Friendster for platform to reach college
Friendster, Myspace #user college students #customer students
#user traction #user  Direct sales #customer
Banner ads, Google
metric: DAU/ MAU/ #customer
AdWords, Yahoo #customer Page views

Cost Structure 7 Revenue Streams 6

Derivative Currency: 300 average monthly page views per #user

 People: unpaid
 Hosting costs: $85/ month Advertising revenue: $1 CPM, $X CPC, $Y CPA #customer

Derivative Currency Exchange Rate: ARPU = $0.30/month

User lifetime value = ARPU * 4 years lifetime = $14.40

Lean Canvas is adapted from The Business Model Canvas (BusinessModelGeneration.com) and is licensed under the Creative Commons Attribution-Share Alike 3.0 Un-ported License.

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