‘Name your price’ platform for services poised for rapid growth 05:05:2013 | miami herald.com
SpendLO is an online marketplace where consumers name their price on local services and are matched with certified professionals who compete to earn their business. Think Priceline meets Angie's List.
Published on: Mar 3, 2016
Transcripts - ‘Name your price’ platform for services poised for rapid growth 05:05:2013 | miami herald.com
CHARLES TRAINOR JR / MIAMI HERALD STAFFSpendlos Kristin Delaney and Corey Leff work in theiroffice in the Delray Beach Librarys new co-working spacefor startups. SpendLO is a startup name your own pricecompany for services, like house cleaning, painting, lawnservices etc. It won 3rd place in the Business PlanChallenge Community Track.Posted on Sun, May. 05, 2013‘Name your price’ platform for services poised for rapidgrowthBy Nancy Dahlbergndahlberg@miamiherald.comA year ago, the spendLO team was puttingthe finishing touches on its website for itssoft launch last summer designed to test theservice. Now the team is ramping up forversion 2.0, with mobile apps, more vendors,a rewards program and revenue-sharingpartnerships.SpendLO’s service-request platform enablesconsumers to name their price on anyservice. “We’re Priceline meets Angie’s list,”said Corey Leff, founder and CEO ofspendLO, which won third place in theBusiness Plan Challenge’s CommunityTrack.Leff, of Delray Beach, was inspired to createspendLO after trying to hire a mover foranother of his businesses, DocumentNation. The process of searching for a service provider and collecting bids — numerouscalls and emails and answering the same questions over and over — was overwhelmingenough, but when the bids came in, it was hard to know who was reliable.On spendLO, a customer can post a project, such as a move, house cleaning, painting orlandscaping. Pre-qualified vendors from spendLO’s network can then submit bids within theconsumer’s budget. If the consumer chooses a bid, the first 10 percent of the cost of thejob is paid to spendLO. The service is available in Palm Beach, Broward and Miami-Dadecounties.To launch spendLO, Leff brought on Managing Partner Kristin Delaney, a former MetLifesales executive who also worked with him at Document Nation. For the past 10 months, thespendLO partners have been running the service, while also testing their model andbuilding up a database of more than 500 vendors, Leff said.‘Name your price’ platform for services poised for rapid growth ... http://www.miamiherald.com/2013/05/05/v-print/3382095/nam...1 of 3 5/28/13 3:48 PM
The goal for Phase 2 of the site, which is expected to launch June 10, is rapid growth. Andthe key to getting there is through partnerships, Leff said.Leff said he is in final negotiations with its first media partner, a television station in SouthFlorida that’s part of a media conglomerate. Through that revenue-sharing partnership,spendLO could get significant exposure and reach through banner and digital video ads onits websites and apps, TV ads and email marketing.SpendLO is also negotiating with a large Realtor group, whose management teamestimates 90 to 95 percent of the homes it sells need some type of service. It is partneringwith a local chamber, which would provide booth space to spendLO and other benefits.“That’s our spendLO business model — to partner up and take advertising or space inexchange for a piece of the pie in terms of revenue. At the end of the day, we see that asbuilding the value of our company,” Leff said.SpendLO plans to be mobile-ready by June 10. With new spendLO apps for Apple andAndroid phones, service providers — who are out all day on jobs — can view new postings,ask for information and make bids on the go, Delaney said..The website will be more social and offer a rewards program, in which points forcommenting, “likes” and tweets can be redeemed for gift cards. “We are hoping ourcustomers will help us do this grassroots marketing along with us. ...and we want to thankthem properly for that,” said Delaney.The longer term goal is to scale spendLO nationally but for now, “our team is 100 percentfocused on making sure every user who comes to our site gets the best experiencepossible,” said Leff. You’ll often find spendLO in the community at green markets, FAUevents and chamber functions.Leff and Delaney also have been active in the burgeoning tech scene. “We’ve hadtremendous mentorship and support from the community,” said Leff.One of those mentors has been David LeVine, a serial entrepreneur who moved here fromSilicon Valley. Over the past six months, he has helped the team with business planning,structuring partnerships and raising capital. SpendLO asked him to be a member of itsboard, along with Ari Steinberg, an early Facebook software engineer, and Alex Enchin,co-founder of the Canadian daily deal site Wag Jag.“Corey and Kristin are both phenomenal, and I love the model,” said LeVine. “I’m lookingfor this company to be one of South Florida’s big successes.”So far, Leff has self-funded spendLO and is now raising a $500,000 seed round.The team of four, which includes Petra Person and Elise Hahn, recently moved into theDelray Beach Public Library on Atlantic Avenue. Startup Delray, an organization thatpromotes entrepreneurship, is converting the library’s second floor into a space for startups‘Name your price’ platform for services poised for rapid growth ... http://www.miamiherald.com/2013/05/05/v-print/3382095/nam...2 of 3 5/28/13 3:48 PM
to collaborate, co-work and incubate.© 2013 Miami Herald Media Company. All Rights Reserved.http://www.miamiherald.com‘Name your price’ platform for services poised for rapid growth ... http://www.miamiherald.com/2013/05/05/v-print/3382095/nam...3 of 3 5/28/13 3:48 PM