Tag Archives: inboundmarketing

CryptoCurrencies: What is an Initial Loan Procurement and why it will drive the Markethive.

CryptoCurrencies:
What is an Initial Loan Procurement and why it will drive the 
Markethive.

There seems to be a lack of awareness around Initial Loan Procurements (ILPs), as well as a lot of confusion if that. This post will try to explain what ILPs are and their significance to finance and Markethive.

The Initial Loan Procurement is a new fundraising method that is similar to an Initial Coin Offering (ICO) but in the form of loans rather than coins. In this ILP scenario, borrowers and creditors enter loan agreements through legally binding smart contracts. Markethive is one of the firsts to offer an ILP along with the originator from Blockhive.

ILPs (Initial Loan Procurement) disrupt the global debt capital market and have the potential to become bigger than ICOs. Blockchain is revolutionizing finance, especially capital markets, which allow companies (and even governments) to raise money from investors globally.

Let’s talk about how companies and governments raise investor money:

Companies can either sell stakes in the company or equity. This is done by issuing stocks and stockholders share the company’s profits. Likewise company losses are stockholders losses and companies aren’t required to pay the investors back. On the other hand, companies can borrow from investors by issuing corporate bonds. Although bondholders don’t share in the company’s profit, they will be paid back their original investment + interest unless the company goes bankrupt.

Governments can issue government bonds to big investors as well and the logic works the same as corporate bonds. Since the government is deemed less risky, government bonds typically have lower interest rates. Examples are US Treasury bonds.

When companies/governments first issue these financial securities, they are issued in what is called the primary market. The average joe does not participate in this market. The big banks and institutional investors are the usual investors. After this, the already-issued securities are traded in the secondary market which includes retail investors like the average joe. Ex. Stock market

Then there’s the private capital market. All companies start private and once they get big, they might go public and list on one of the stock exchanges. Ex. Uber is currently a private company valued at $70B, and they are supposedly planning an IPO soon. Only then, would the average joe be able to buy Uber stocks and invest in the company. So who invests in these private companies early on? Big institutional investors such as Venture Capital firms (VCs) with lots of money get to invest early on for equity and if the company takes off, they could multiply their investments by orders of magnitudes.

This was how things were done TRADITIONALLY. With Blockchain technologies, modern finance is changing. Initial Coin Offerings provide companies (and governments) with a whole new way of raising capital. It’s easier, faster, and the whole world gets to participate. Although coins are not 100% like stocks, a lot of them behave that way: Many tokens will profit if the issuing blockchain company becomes successful. (For example exchange token holders earning trading commission fees). Like stocks, there is no legal obligation for the company to pay the investors back their original investment. Initial Coin Offerings serve as the primary market and exchanges like Binance serve as the secondary market. This change is happening extremely fast. In 2017, more money was raised with ICOs for blockchain start-ups than ALL of Venture Capital. Pretty much EVERYONE can participate in these ICOs as well as trade the tokens once they are listed on exchanges.

This is why regulators are going crazy about cryptocurrencies right now. Throughout history, financial market crashes have devastated many lives, and each time regulators stepped in with rules to protect consumers. Let’s not debate the pros and cons of regulation here, but it’s just the way things are. With cryptocurrencies, regulators see more risk than ever for consumers as now regular people are participating not just in this unregulated secondary crypto market, but in primary markets as well through ICOs.

Meanwhile, the global debt capital market has barely been disrupted by blockchain tech. If anything, there are many crypto projects in the works for peer-to-peer lending, but there is only one project that I know of focused on disrupting the public debt capital market: Initial Loan Procurements (ILPs).

A fundraising structure utilized by Markethive, this has the potential to grow even bigger than ICOs (The world debt market is way bigger than the world equity market). This year Markethive will be one of the firsts to offer an ILP, like Blockhive, and will be one of the first companies to raise capital by decentralized crowdfunding of debt.

To summarize Markethive’s ILP: we are targeting 10.5M Dollars (USD in Bitcoin) from lenders (think ILP). In this decentralized world, anyone can participate. The loan period is projected to be 10 years and the interest is 20% of Markethive’s operating profit. For example, if I lent Markethive  $1,000 through this ILP, I will be repaid this principal in 10 years, and also earn interest over that period (In Markethive's case, 20% of Markethive’s operating profit will be distributed across the lenders. Furthermore, the ILP structure issues Hive Foundation Shares (HFS), which will allow me to sell my loan contract in the secondary market, if I don’t want to wait 10 years to be paid back. Each ILP will have its own FLAT to provide liquidity in the secondary market. Markethive's FLAT is also called Hive Founding Shares.

All ILPs are powered by legally-binding smart contracts (loan contracts between each creditor/issuer), and digital identity/signature solutions. The token utilized for these products will be traded on the open market exchanges (yet to be announced)

This is HUGE. Instead of issuing traditional bonds, corporations and governments can participate in this decentralized form of crowdfunding loans. It’s fast, easy, and the whole world can participate.

'

The financial revolution is now just starting.

The need

The Markethive team believes that there is a need for an alternative to ICO due to the following shortcomings. The token economy is based on the demand, and sometimes selling tokens doesn’t make sense because the token has no real function for your business. Also, laws and regulation are an important consideration, because countries such as China have banned ICOs. Taxes also play a major part. Some countries consider money raised through ICOs to be income rather than capital and may tax it at rates as high as 40 percent.

The alternative 

Markethive has partnered with smart-contract development firm Menlo Tech and the original developer of the Monero Coin to develop a way to raise funds using loans. Here are some unique points of ILP:

The structure is as effective as an ICO because it is open to individuals around the world.

It is legally binding because agreements are digitally signed using blockchain technology which records information in a distributed database so they can’t be easily altered, adding a level of security for creditors.

Because ILP is in the form of loans, it is considered to be debt, and not subject to tax.

For businesses that don’t need tokens in the first place, ILP provides an alternative so more time and energy can be spent on business development, rather than creating tokens with no actual usage.

The ILP is regulation-friendly. Markethive conforms with regulatory frameworks designed to fight fraud and money laundering. Therefore, participants of ILP will be required to submit their identification and to go through the process of authentication (KYC).

The Markethive team says, “ILP provides a fast track alternative so more time and energy can be spent on business development. Last, but not least, because ILP is in the form of loans, it is considered to be debt, and not subject to tax.”

How does it work?

In Markethive’s case,

We first ask our creditors to register their identification, address and other information.

Then, they will digitally sign the loan agreement and send Bitcoin to our registered account.

Once we receive the Bitcoin, the contract is made.

That means Markethive’s creditors can receive 20 percent of Markethive’s monthly profit as an interest payment.

After the loan contract is made, Markethive will issue the Hive Foundation Shares (HFS the FLAT  Future Loan Access Tokens). HFS gives creditors the right to transfer loans to others, using Markethive’s Wallets, Markethive’s internal exchange or on public exchanges.

The team further clarifies, “When individuals receive HFS tokens, they become potential creditors and can use the tokens to sign loan agreements with the borrower, in this case, Markethive. Once they have signed the loan agreement with Markethive, they are now the new creditors of the loan agreement and they will get the interest payments.”

Take part in the Markethive ILP

The ILP seems like a much more secure approach to fundraising while keeping the ease of raising funds like the ICO. Markethive is a first test case of this new funding method. It is currently in pre-launch and you can register for it here – https://markethive.io

 

Thomas Prendergast
Founder

Markethive

 

 

 

 

Thomas Prendergast

When Markethive discovered herself

From Social Networks to Market Networks

 

Markethive is a full suite “Inbound Marketing” platform integrated with a full scale “social network” targeting the 800 million “Entrepreneur” global populations. Like Facebook meets Pardot. This new revolution of the next wave of progressions is known as Market Networks, compared to the last wave of Social Networks. Even MarketHive’s name reflects this new revolution. Experts predict the “Market Network” will dwarf the “Social Network” market.

1. Founder (Thomas Prendergast): 40 years’ experience in Ad Agency and Marketing professional. Educated and developed technology awareness from 1982 – 1992 in the Silicon Valley. Visionary, skilled programmer, innovation 1sts, Stanford and UCSD Super Computer Center foundations and over 20 years building marketing innovation on the Internet.
 

2. Pardot, a full scale Inbound Marketing Platform (very similar to Markethive's platform) sold for $95 million to complete the ExactTarget platform in preparation to be sold to Sales Force for 2.5 billion Using these metrics it is easy to assign a value to Markethive of a minimum of $100 million. see story: www.bizjournals.com/atlanta/blog/atlantech/2013/06/atlantas-pardot-helped-drive.html
 

3. The experts (like Nir Eyal) and many bloggers (like Guerric de Ternay) are recognizing the new emerging systems called Market Networks.

  1. Market-networks are hybrid animals: part social network, part marketplace, part SaaS.
  2. It’s a social network. Professionals use profile pages to showcase their work and demonstrate their credibility. They also connect with each other and build relationships.
  3. It’s a marketplace. Professionals come online together to find other parties with whom they can do business.
  4. It’s a SaaS (Software as a System) tool. Professionals use the tools on the top of the marketplace to negotiate, do the job, or manage the paperwork.

4. Hooked: Systems that improve with age are the sought after prizes as they retain growth and are considered monopolies, not commodities. Markethive possesses this trait on 4 serious levels.

  1. Leads (called children) from the profile pages advance organically and improve with time
  2. Blog subscribe organically builds subscribers (automatically publishing) to top social networks
  3. Profile page improves with organic advancement in workshops, blogging and groups
  4. Increased reputation builds via blogs and profile page growth

5. Markethive is the indisputable full platform Market Network and has the distinct advantage of ready to launch and be "First to Market".

6. At least three patentable products; Blog Subscribe, Blog Swipe and 1Click Subscribe Widget

7. Projected funds of minimum $1 million with 20% to polish the system in preparation to officially launch and the remaining 80% to drive the marketing and crowd funding to record breaking status.

 

Summary:
see story: https://techcrunch.com/2015/06/27/from-social-to-market-networks/

Social Networks Were The Last 10 Years. Market Networks Will Be The Next 10.

First we had communication networks, like telephones and email. Then we had social networks, like Facebook and LinkedIn. Now we have market networks, like HoneyBook, AngelList, Houzz, DotLoop and Joist.

You can imagine a market network for every industry where professionals are not interchangeable: law, travel, real estate, media production, architecture, investment banking, personal finance, construction, management consulting and more. Each market network will have different attributes that make it work in each vertical, but the principles will remain the same.

Over time, nearly all independent professionals and their clients will conduct business through the market network of their industry. We’re just seeing the beginning of it now.

Market networks will have a massive positive impact on how millions of people work and live, and how hundreds of millions of people buy better services.

“Markethive has the ability to be an incubator (hive) to produce more strategic “Market Networks” as well”. 

 

Thomas Prendergast
Founder and CEO Markethive, Inc.

 

P.S.
The "Market Network" Illustrated
(Do you see Markethive?)

P.S.S.

Definition of Hive (Curious aint it?)

hive (hīv)

1. A place swarming with activity.

2. To work with many others in a close network.
3. a network showing signs of great industry
4. a teeming crowd; a network

Thomas Prendergast

I’ll say it: the days of outbound marketing are over.

I’ll say it: the days of outbound marketing are over.

entrepreneur

The "Wolf of Wall Street" mentality of harassing customers over the phone, sending spamy emails, and going door-to-door to close deals has become much less effective in recent years. Customers have access to so much information every day, they’ve become increasingly resentful of marketing intrusions. The rise of blocking tools such as caller id, spam folders and ad blockers is not coincidence.

Inbound marketing is the new normal. That’s the idea that if you provide value to customers first, they will respond by returning that value back and doing business with you.

To get a peak under the hood inbound marketing, and get tips on how others can use it, I had a chance to chat with A.J. Agrawal – an entrepreneur who built his business, Alumnify, around it. A.J. is a fellow contributor at Entrepreneur as well as at Forbes, Huffington Post, and others.

Here’s an edited version of our e-mail interview:

Why begin with universities?

We started there because we saw a strong decrease year after year in alumni engagement. Right now, alumni engagement is at an all time low – under 10 percent. It was obvious that institutions were struggling to adjust to the new ways their alumni were communicating and engaging. So we saw the opportunity.

For about 85 years, alumni engagement was pretty steady. Then all of a sudden, in the 90’s it began to fall drastically. In panic mode, many schools chose to double down on the outbound marketing tactics that worked in the past: cold calls, snail mail, and increased email addresses. They also deployed better data tacking and software to help optimize open email rates as well as make the giving process easier for graduates.

But these strategies had no effect (or even a negative effect on engagement) because they were built on an overall strategy that was broken. So we decided we would build inbound marketing solutions to provide value to alumni first. 

How do you begin inbound practices?

First, make sure you know what inbound marketing is. At its core, inbound is anything that provides a tremendous amount of value to your target customer without asking anything from them in return. There are tons of ways to do this and the best part is that most of the major strategies can be done for minimal cost.

One thing we recommend to companies we work with us is to start by getting a blog set up and to have someone be responsible for publishing regular content. One of the nice things about inbound marketing is that it requires companies to build major assets for their business. Your content library is a huge asset and will eventually help your SEO, and pull in more customers to your website.

Other popular inbound strategies include webinars, eBooks, infographics, mobile apps built to help your customers, and optimizing your social media.

Each business is different, so the strategy depends on factors including audience, industry, and expertise. Like most things, the hardest part is just getting started. Once you find an inbound strategy that starts to work, it becomes much easier to fine tune and expand on your traction.

Do you avoid outbound strategies?

Not at all. While inbound is definitely the future, some customers still respond well to outbound strategies. Even as an inbound company, we still cold call customers and send promotional emails once in a while — but as part of a complete plan.

When thinking about the brand I want for Alumnify, I don’t want prospects and customers avoiding our phone calls. The image of a customer seeing an Alumnify Team Member calling them and saying “Not these people again” is my worst nightmare. And it should be any entrepreneur’s nightmare too.

Instead, I believe that the key to getting customers to love us is to provide value without asking for anything in return. For example, we have a free inbound marketing email list we just launched yesterday with weekly tips and webinars. And I’m always happy to help any fellow entrepreneur hammer out an inbound strategy. That type of approach may take more work in the short run, but it’ll also help build a much better brand to our customers in the long run.

Article writen by:

Contributor

 

Thomas Prendergast

Pardot a shadow of Markethive report

Arriving at the Pardot Acquisition Price

pardot

This is an article about a similar Inbound Marketing company like Markethive. Unlike Markethive, Pardot is not a social network, but is only an Inbound Marketing platform. In that aspect, they are a shadow of what Markethive does.

Thomas Prendergast
CEO
Markethive CEO

The article:

One of the more popular questions I get from entrepreneurs that are curious about selling a company is how we arrived at the Pardot acquisition price. My normal response is that we had $10 million in trailing twelve months (TTM) revenue at time of sale and we got 9.5x TTM. Well, since we’re more than three years out from the deal (see 3 Year Anniversary of the Pardot Exit), there’s actually much more to how we arrived at the acquisition price.

And, as you might expect, arriving at the price of a fast-growing SaaS startup isn’t as logical as you might think.

The original offer came in at $60 million. Looking at our growth rate (100%/year) and our run-rate ($13M ARR), we said we could wait 12 months, get to $20 million TTM, and then sell for 5-7x. We countered asking for $140 million.

Not knowing what would happen, but confident we were in a great place in a great market, we felt good about our counter.

48 hours later they came back and offered us $70 million. Time to play ball. We countered at $120 million.

48 hours later they came back and offered us $80 million. We countered at $110 million.

48 hours later they came back and offered us $90 million. We countered at $100 million.

48 hours later they came back and offered us $95 million. We said no. $100 million is our final offer.

Then, the final wrinkle emerged: they couldn’t pay $100 million. Even with $210 million in cash on the balance sheet at the time, they had already filed paperwork with the SEC to do a secondary offering, and based on rules as a public company, they’d have to withdraw the offering if they acquired a company for more than a certain percentage of assets. Well, $95 million was the max they could do if we wanted to do a deal now.

$95 million — take it or leave it.

We said yes. The deal closed 42 days later.

Not all acquisition prices are logical. Our deal was driven partly by our revenue, market multiples, market opportunity, and SEC rules. Go figure.

Reprinted from:

DavidCummings.Org

Thomas Prendergast