aria funding finances network marketing programs
Post on 28-Nov-2014
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“Providing non-bank financial services for the Network Marketing Industry”
Presented by: ARIA Funding Inc.
An Overview Of The OpportunityUnderstanding the relationship between low-cost entrepreneurship and economics is important.
The PayDay and Online “Short Term” Loan Industry is Booming:When credit unions decided small loans were unprofitable, payday loan companies recognized a niche market and need, and learned small, short-term loans can be profitable. Online entrants like Wonga in the UK have realized tremendous growth and profitability through efficient capital management practices gained by leveraging information technology platforms.
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Recession drives growth in the MLM Industry: When recession hits, those with any intelligence seek alternative sources of income. In their searches, they often find their best alternative is MLM also known as Network Marketing.
Network Marketing Entrepreneurs Need Small Amounts of Startup Capital:Although lower than the cost of starting a traditional business, MLM businesses require upfront investments by the new entrepreneur to get going. The typical cost to establish buy-in to an MLM franchise is around $500, which covers the initial costs of products, establishment of a website, business collateral and training.
This can create missed opportunities even though successful candidates usually see a return on this investment in 30 days or less.
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STEADYINCOMES
100%
32Median
Age
Average Loan is $300Average Term 14-30 daysAverage APR 520 percent
MIDDLE EDUCATED94% have high school diploma52% college educated
MIDDLE INCOME52% have incomes between $25,000 and $50,000
TYPICAL PAYDAY LOAN BORROWER
10%Total Pop.42% Own Homes
Typical Borrower
38%
62%
ARIA Funding FeaturesThe structure of the loan is low risk, scalable & profitable
$500Principal $100
Interest $19.95Membership
• $20 PER $100 BORROWED (240% APR)• 30 DAY TERM• PAYMENTS SETUP AS ACH• Online Transaction
Loan Principal
Interest Payment
Membership Fee
$119.95 Profit30 days
$119.95 Profit30 days
Why ARIA Funding?Founded in 2014
Our offering combines the gigantic networks of MLM organizations, the financial returns and leverage of short-term loan models, the best efficiencies of online operating models and the network based incentives of member referrals rolled into an easy to use online website and application.
Description MLM Loans Amscot E-Z Payday Wonga
Affordable
Single Use Restrictions
Focused on MLM Entrepreneurs
Capital Usage Restrictions
Online Only
15.9M
What We Are Looking To AchieveMarket size and potential for ARIA Funding offerings
U.S. MLM Market U.S. Direct Selling Channel Educated Customers 100% Online A surge of new recruits every
yearAnnual revenue in the US MLM
market yearly.Middle-market entrepreneurs with stable incomes means less defaults (10% or less)
High Volume Loans with Low Overhead
No-Cost Base of Independent Reps
Targeted Short-Term Loans to MLM Industry
Low Default Rate Efficient Capital Deployment
$31.6B 10% 80K loans/month
Revenue & Profit ForecastsWhat the graphs are saying about revenue
YR 1: $80M LoansNet Profit: $5M
YR2: $179M LoansNet Profit: $18M
YR3: $321M LoansNet Profit: $38M
YR4: $446M LoansNet Profit: $56M
AVERAGE
80,000 loans/month
$70M
YR5: $542M LoansNet Profit: $70M
5% AVERAGEGROWTH
How The Funds Will Be Used Minimal startup costs, large upside projections
HUMAN CAPITAL
Payroll, Taxes & Benefits
2014
Website, ITC Investments, Legal Fees
FUNDING
OPERATING EXPENSES
SG&A, Bad Debt, Bank Fees, R&D, Etc.
CAPITAL DEPLOYMENT
Money for lending
STARTUP COSTS
Timelines & MilestonesFast Ramp Time due to Established MLM Industry Relationships
Area Team Member May Jun Jul Aug Sept Oct Nov
Web / ITC Dev Ops Brian K.
Channel Partnerships Letty R.
Gina M.
Delia P.
Call Center Setup Nick L.
Sales Kenny R.
Training Steve B.
Product Strength And OpportunitiesOpportunities to grow the business beyond short-term loans
Strong base of reps at little to no cost combined with targeted niche marketing against no competition.
STRENGTHS
Regulatory agencies in the U.S. are becoming more stringent on PayDay lenders.
WEAKNESSES
Captured clients through MLM Channels can be targeted with new financial offerings.
OPPORTUNITIES
Credit unions are looking for new revenue from their existing client base via new short-term loan products.
THREATS
Strengths
Opprotunities
Weaknesses
Threats
S W
TO
Website Design & DevelopmentResponsive online portal for members and borrows to interact
Mobile First Responsive Design
Secure
MultiLingual
UX and Search Optimized
Mobile manufacturer are adding more and more functionality to mobile phones. From games, to shopping, travel, social and even health.
By the end of 2014 we’re expecting more surf time to be on a mobile device (iPads included) than via desktops PC’s. Mobile changes everything.)
82% of our media time is spent within apps
Apps Dominate – Brick and Mortar is HistoryResponsive app design works across all devices including iPhone and Android
Consumers can now use smart-phones and tablets to interact with business 24/7, from anywhere.
Companies that embrace this always-on behavior - the taxi service Uber with mobile pickups, GrubHub and Seamless for food delivery, and Hotel Tonight’s app for last minute bookings - can disrupt entire industries.
Over 1.2 billion people access the web from theirmobile devices
Mobile is the FutureMobile users execute transactions in real time
Digital Finance SoftwareARIA Funding digital finance solve people’s short-term cash flow
People apply for a short-term loan through the ARIAFunding.com website or application
Application Process
This offers the business startup a swift decision and then transfers the money into a bank account or onto a debit card within a short-time.
Swift Decisions
Automated interfaces to Teletrack state databases and ACH processing alleviates the need for a visit to the bank and keeps overhead low for ARIA Funding.
Completely Automated
Remote auditing cuts down on internal fraud and streamlines general ledger reporting such as principal, interest, NSF princpal, etc.
Reporting Features
Interested? - Let’s TalkARIA Funding is actively recruiting US partners to optimize its launch and accelerate growth.
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