Ethan Anderson of Redbeacon on This Week in Startups #130

Looking for the most thorough maid in Seattle or the most artful photographer in DC? Then you need Redbeacon.com. Watch CEO and founder Ethan Anderson explain how he took the company from TechCrunch50 darling to a presence in all 50 major US markets in under two years in this episode of TWiST.



1:00-2:15 Ethan Anderson is with us today from Redbeacon.
2:15-4:15 Squarespace ad. Go to Squarespace.com/TWiST for a 14 day free trial.
4:15-5:15 Introducing Ethan and his background as a TechCrunch50 winner and Harvard grad.
5:15-6:15 What is Redbeacon and how does it work?
6:15-7:30 How do you get pre-qualified service providers?
7:30-8:00 You're making each party do a little more work and by doing so, both have a better expereince.
8:00-8:30 Are you seeing a higher caliber of provider and customer intent using this method? (Watch the clip.)
8:30-9:30 We put in a request for a photographer and got three price quotes.
9:30-10:30 Explain how someone gets their score and what the range is.
10:30-11:15 How do the varifications work? Do you pay for it or is it a service?
11:15-12:00 Is this something you've considered picking up the cost of to make the system more reputable?
12:00-12:30 Does the customer pay through Redbeacon or pay the provider directly?
12:30-13:00 So you invoice the provider?
13:00-13:15 If the customer breaks the appointment does he get his money back?
13:15-14:30 What cities are you operating in now?
14:30-15:45 How did you determine the rollout strategy?
15:45-16:15 What services have been the obvious winners and which have been the non-obvious winners?
16:15-18:00 Talk about what life was like after TechCrunch50 and the frenzy. What was it like to meet with VCs after you won? (Watch the clip.)
18:00-19:45 Did your first round of raising go easily? Why Mayfield and Venrock?
19:45-20:00 How do you do negotiate term sheets as an entrepreneur?
20:00-20:45 So you were even a little humble in negotiating who you wanted to work with?
20:45-21:00 None of that "Price is Right" nonsense?
21:00-21:45 How many people do you have now and what does the future look like? Are you thinking about doing another round?
21:45-23:15 What is the downside you see to raising more capital?
23:15-25:00 What do you think about the Groupon space and local social networks like Gowalla and Foursquare? How do these businesses impact you?
25:00-26:00 Have you thought--if you have a handyman who's not that busy--that it could be a marketing boon (to offer a discount)?
26:00-26:45 So there's enough of a deal built into the system?
26:45-27:00 If they want to ask a question is has to be public?
27:00-28:00 (Jason gives more detail.) Is it limited to 3 price quotes?
28:00-28:45 So five is the cap you've found?
28:45-30:00 What about Google's massive activity? Is Google really a bully in this space? Are they taking advantage in your mind? (Watch the clip.)
30:00-30:45 So if a user searches for San Francisco housecleaning services in Google, how would Redbeacon appear?
30:45-31:30 So basically they get a piece of your action and you get premium placement?
31:30-31:45 How long did it take to get a deal like that with Yahoo!?
31:45-33:45 Tell us what it was like preparing for Tech Crunch50 and being on stage at the moment that you won?
33:45-34:15 Who was number two that year?
34:15-35:00 Tyler talks about CitySourced, another Tech Crunch50 company.
35:00-35:30 Final thoughts on Redbeacon.
35:30-38:15 Jason and Tyler talk about the past Tech Crunch50 partnership and companies that emerged from the conference.
38:15-40:00 .CO promotion. Thank you for sponsoring independent media and startups.
40:00-40:45 Ask Jason segment with Wenhan Zhou from Singapore.
40:45-46:15 Zhou's question: We're looking to expand to the US market, so what advice do you have for overseas entrepreneurs who are tyring to expand to the US?
46:15-48:00 What brands from the US play any kind of role in Singapore? Are there ad agencies operating there?
48:00-49:30 Zhou's question: What about hiring someone?
49:30-50:15 Are there a lot of TWiST fans in Singapore?
50:15-50:30 Thank you to Squarespace and .CO.

Background on Ethan Anderson and Redbeacon

Ethan Anderson

• Product Manager at Google; helped launch Google Video


• Prior held marketing roles at The Clorox Company, Buy.com, and McKinsey & Company


• Advisor at Summify


• Graduated with honors from Harvard Business School, undergrad from Duke

Redbeacon

• Lets users search, browse and book local service providers in the top 50 cities nationwide


• Redbeacon was born out of Ethan’s frustration while moving


• Raised $7.4M in series A led by Mayfield Fund and Venrock


• Won TechCrunch50 in 2009


• Took 1st place at Business Insider’s Startup 2010


• Top three markets: San Francisco, Seattle and Washington DC


• Service providers in new markets are not actively recruited to join Redbeacon until a request for their service is made


• Newly implemented call system (through Twilio) allows customers to talk directly to service providers before booking


• A “testimonial” feature was recently added (similar to LinkedIn recommendations)


• Top service providers see 40-50% of their customers come through the service


• Top service verticals include maids, handymen, plumbers, photographers and personal trainers

Multilingual? Translate this episode of TWiST into another language and email the transcript to translate@thisweekin.com.

FOLLOW ON TWITTER

Jason: @jason
Tyler: @steepdecline
Ethan: @ethan_anderson
Redbeacon: @redbeacon

Comments

[Ryan Lou]

You do have TWIS fans in singapore... Most of us watch the re-cast though :)