pay yourself first 7 27 07 v2 david carrithers
TRANSCRIPT
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Pay Your Family First Network
ROUGH THOUGHTSJuly 27, 2007
David Carrithers
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High Level Observations
• Ton of information out there on Pay-Yourself-First (web, seminars, booklets)
• Most is very financial industry focused loaded with lingo, equations, industry terminology
• Targeting kids, novice savers, underserved • Many banking intuitions have information or tie in with
“charity & community good will” and PYF• Universities, businesses, financial planners all have an
angle or advance• Today PYF seems fractured, self-serving, abstract and
“OK now what” – lacking connection to action and ability
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High Level Observations
• PYF movement needs simplification and individualization of message
• Less about financial terms and equations and more about the end goal and goal attainment
• The average person needs to see, feel and desire the end result/ goal – once they embrace this they will move mountains
• Need to fit in with everyday life, the way we work, earn and live.
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High Level Market Indicators
Growth Of Acceptance Of Stored-Value Cards• The stored-value marketplace, which includes both prepaid debit cards and
merchandise gift cards, is expected to grow from a $216 billion market in 2005 to $650 billion in 2010, according to a report released by the Pelorus Group, a U.S. market research group.
• National Retail Federation Gift Card Survey, 2006– $24.8 billion: total gift card sales this holiday season – $116.51: average amount consumers will spend on gift cards this year – $88.03: average amount consumers spent on gift cards last year (2005) – 79.7 percent: consumers who said they plan to purchase at least one gift card this holiday
season
• Prepaid card sales at convenience stores jumped 68.5% in 2005, a phenomenal growth spurt by anyone's reckoning--and it looks like the next wave is prepaid debit cards. The entire prepaid market has a defined value of more than $2.5 trillion dollars, and the business-to-cardholder portion consumes more than $1.5 trillion of that, stated C Store 2006 Sales Trend Handbook
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High Level Market IndicatorsTo Keep In The Back Of Our Minds• The U.S. General Accounting Office has estimated that there are almost 60 million
unbanked individuals in the U.S., including approximately 24.2 million U.S. house-holds that do not have a checking account.
• Franchising, which employs more than eight million people domestically while generating retail sales in excess of $1 trillion annually, it is important to recognize that banking the unbanked into direct deposit can have a significant impact on the bottom line. This is true for franchise businesses and their unbanked employees.
• More than half of all workers in the U.S. use direct deposit in one form or another. Ninety-seven percent of employees who sign up for direct deposit are very satisfied with it and more than 70 percent of employees who have access, use it.
• Unbanked employees who are paid by paper check often resort to "check-cashers" or check-cashing services. These services charge as much as 8 percent of the face value of the check as a cashing fee. This is an expensive transaction, especially for those who can least afford it.
• Teens spend about $153 billion on goods and services each year, mainly with cash, according to Visa.
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Pay Your Family First Membership Program• Free to users: educates & provides path to action
• Web based enrolled membership program
• Family Savings Goal Oriented: either by
Family category, i.e. trip, college, retirement, home ownership or
Community oriented, i.e. church group, school, nonprofit or
Custom / personalized
• Downloadable software management tools (pay yourself first software)
• Includes ways to increase earnings potential, self payment tools, account management, etc.
• Allows for earnings to be accumulated, tacked and when ready applied to goals
Features Of PYFF Membership Program
Information & Tools
Web Community PYF Tools
Help In Capturing $
Account & Card
Accumulating & Appling Funds
Earnings Acceleration
Retail Partners
Goal Attainment
Assistance In Use Of Earrings
PYFF
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Earnings Accumulation
$$$ InPYFF Account
Pay Check
Bonuses
Retail Partners Shopping
Credit Card ProgramsDonations
Family Contributions & Giving
Fundraising
Tithing Loyalty Programs
Gift Card Funds ConversionBirthday Gifts
Wedding Contributions
Selling On EbayOvertime
% Of All Cash Flow
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Earnings Improvement & Build Up
$$$ While SavingPYFF Account
Savings Account
Investment Tools
IRAs/401ks
Mutual Funds
Etc.
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Goal Attainment
$$$ OutPYFF Account
Targeted Goal
First Home
Training
Debit Reduction
Church Need
Special Needs
Charity Program
Starting A Business College Tuition
RetirementCareer Development
Vacation & Travel
New Car
New Appliance
Purchasing Assets
Paying Of Home Loan
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Income
Expense
Asset
Taxes
Rent
Food
Liability
Job
•
Save
Invest
Family Member 1
Income
Expense
Asset
Taxes
Rent
Food
Liability
Job
•
Save
Invest
Family Member 2
Income
Expense
Asset
Taxes
Rent
Food
Liability
Job
•
Save
Invest
Family Member 3
Pay Your Family First Program
Diagram Concept From Rich Dad, Poor Dad Book, Page 174
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PYFF Stand ProgramStandard Web
Base Account & Card
PYFF Branded
Off The Shelf Program
PYFF Co-Branded Program Church XYZCo-Branded Web
Co-Branded Account & Card
Co-Branded With Charity/Church
PYFF Custom Program Financial Institution ABC
Custom Web
Custom Account & Card
Total Customized
PYFF Custom Program Business ZYX
Custom Web
Custom Account & Card
Total Customized
PYFF Personalized Program Nonprofit Standard Web
Base Account & Card
PYFF Branded
Limited Co-Branding
Pay Your Family First
Centralized Platform
Centralized Data
Centralized Accounts
Centralized Payments
30,000 Feet View
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Ideas On Revenue Stream
Network As Private Currency – Power of Accumulated Funds• Ability to accumulate and aggregate funds into a private network
and currency program (creates a pool of funds) – can invest, can manage and greater value, savings and returns
• Spending funds through a stored value card program with filtered redemption option allows for negotiating commissions with merchants
• Custom cards and materials allows for fee generation
• Data accumulation and reports
• Could develop a credit instrument for expense and liability management (capturing acquisition fees) and a stored value product for spending on asset accusation
• Provide way for asset conversation (things like gift cards, checks, loyalty points, etc.) into account – processing or conversation fees
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Ideas On Revenue StreamNetwork As Added Value – The Program Reach• Network could be developed so that it could be attached to other
financial and/or loyalty programs out there (i.e. enhancement to loyalty programs, banking programs, credit unions, credit card programs, etc.) – set up fees, issuance fees, transaction fees, interchange fees/sharing, etc.
• Custom Branding/White Label version – set up fees, issuance fees, transaction fees, etc.
• Corporate Benefit Programs – Allows for offering helpful benefits to employees, partners and others supporting a company - Membership fees, set up fees, etc.
• Credit Reports - Fees • Community Support – Allows companies to help people and local
communities and outreach programs – Participation and sponsorship fees
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Ideas On Revenue Stream
Network As Loyalty Program – Buying Behavior & Funds In• Allows for the support of existing card programs out there, tapping
into existing program earnings, rebates, etc.
• Develop retail partners and promotions that allows for the accumulation of funds
• Potential to develop a credit instrument (or charge card) that has favorable terms and again allows for the development of a loyalty program on buying behavior driving percentages to the PYFF account
• Promotion and publishing revenues and opportunities – merchant partners, supporters, etc
• Fundraising avenue – allowing for a platform to raise funds through a variety of fundraising channels, including scrip, products, etc.
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Ideas On Revenue Stream
High Level – To Be Shared With Members, Foundation, Partners
• Filtered Merchant Commissions - (3% to 30% Potential Based On Transaction Amount)
• Program Customization Fees - (Per Card Fee $1.50 to $5.00 Potential)• Credit Card Interchange Sharing - (10 to 30 Biases Points Potential)
• Accusation Commissions - ($25 to $100 Per Potential)
• Membership Fees – Sponsor paid or individual paid (Yearly, Monthly, One Time Potential $15 to $25 Per Potential)
• Bank or Partner – Sponsor Fees ($50k to $200k)• Value Of Money – Interest (TBD by market and type)• Promotion & Advertising – Fees (Per Click, Banner, Sponsored Magazine,
etc. $500k per year)
• Fundraising Tools/Products – Commissions (2% to 20% off face value)
• Loyalty & Partnership Marketing – Conversion of Points/Miles, Discount Off, etc. (TBD)
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Things To Drill Down On
• Ability to get lower income and/or unbanked to utilize PYFF concept
• Building trust between people who may live off the “grid” into a program that builds an account and data
• Those that are not utilizing direct deposit of payroll and how to improve this acceptance, which would improve the results
• Ongoing management requirements of the marketing, development, operations and support of this concept
• Making it easy to understand, easy to set up and easy to use
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Just A Start
Best In Spirit,
David Carrithers, Chief Bee Keeper
707-484-3620
www.Businesshive.com