Q&A with Rex Wong of Fliqs Media
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What is the opportunity and how does the company address this opportunity?
Today, social media is the new marketing and commerce channel, especially for Millenials and Gen-Zers (population under 30) who do not watch TV and do not believe in advertising but consume content created by and purchase products endorsed or sold by social influencers and key online leaders (KOLs) whom they trust implicitly. Native content marketing is also the new and more credible way to market products versus advertising as users believe in useful, informational content, especially from influencers and KOLs, vs. blatant in-your-face advertising. This makes these influencers and KOLs the new media companies and brands where users get their information and buy their products. However, these influencers and KOLs do not have the tools, resources and infrastructure of traditional media and brands to manage, amplify and monetize their audiences and are typically one-man bands that are “unmanaged” and unstructured. Influencers are typically “right brain” creators and A-type personalities who are great at creating content, attracting audiences & gaining influence but not as great with the “left brain” details, chores, and responsibilities of building & operating a business. The Fliqs Media Platform is an AI-driven automated platform that acts as their “business partner” and “virtual left brain” filling in the void by providing an automated, self-serve platform that acts as their virtual talent agent, manager, CTO, content marketing engine, content distributor, social marketer, publicist, content manager, community manager, data scientist, advertising/sponsorship sales, e-commerce manager, logistics/fulfillment manager and sourcing agent, all in one seamlessly integrated and automated platform to help them build, cultivate and monetize their audiences. Fliqs Media helps influencers manage, analyze and amplify their social data, provides tools to help them create and distribute amazing viral content, expose them to advertising and sponsorship opportunities, and connect them to factories to create customized merchandising creating instant e-commerce opportunities without the need for influencers to think about or manage sourcing, inventory, supply chain, logistics and fulfillment.
How big is the market opportunity and how does Fliqs Media make money?
Fliqs Media is positioned to disrupt and take advantage of two big market opportunities – digital media and e-commerce. The current digital media business is a $150 billion market opportunity globally in 2019 growing to $173 billion by 2023 (Statista). The current e-commerce business is a $3.5 trillion market opportunity globally in 2019 growing to $4.9 trillion by 2023 (eMarketer/Statista). Influencer Marketing budgets by brands looking to tap influencers to promote and endorse their brands is a $5 billion market in 2019, growing to $10 billion by 2022 (Business Insider). We believe, with the help of the Fliqs Media Platform, Influencers will be able to capture a significant market share of the global digital media, e-commerce and social marketing business. Examples of existing successful influencers who have become both global media powerhouses and brands include Kylie Jenner, who has turned her 175 million social followers into a $360 million annual revenue beauty business, and Michelle Phan, a YouTuber that has turned her 8 million YouTube subscribers into a $180 million annual revenue business that combines her cosmetic how-to videos with a subscription box cosmetics business. With over 50,000 influencers with over 100,000 social followers, Fliqs Media looks to help these influencers transform into their own media companies and brands by partnering with them in a revenue sharing business model, which means Fliqs makes money if and only if they make money. Management believes that by 2022, Fliqs Media can achieve gross revenues of approximately $200 million.
What are the financials and funding status of the company?
Fliqs Media has already achieved almost $4 million in sales revenue and almost $1 million in net income and expects to achieve approximately $10 million in sales revenue by the end of 2019 based on its current sales pipeline. Fliqs Media has been seed funded by its founders and is currently raising its first round of outside capital, raising $5-7 million in a convertible note, which is being led by Global Trust Group. We are looking for strategic investors that can provides us more than just capital by helping us grow with strategic resources and relationships. This capital will be used grow our influencer community, expand globally, expand our sales and business development teams and to continue development and improvements of the Fliqs platform. Fliqs Media’s founders have had multiple successful startups and exits that have created over a billion dollars in shareholder value.