San Diego Pilot: Quick Reference Guide
Docs at a Glance 📚
| Document | Purpose | Best For |
|---|---|---|
| BUSINESS.md | Monetization options, pricing models, merchant onboarding | Understanding offer mechanics and payment strategies |
| PILOT_STRATEGY.md | Financial projections, risk/reward, 12-week phased timeline | Planning execution, budgets, and decision checkpoints |
| FOUNDER_CONTEXT.md | Founder story, market positioning, narrative for merchants/investors | Pitching, recruiting merchants, fundraising |
Key Numbers (60–90 day pilot) 💰
Investment
- Total cost: ~$10K (shadow time + contractor support)
- Expected revenue: $350–950 (not profitable; R&D spend)
- ROI metric: Merchant willingness-to-pay + NPS feedback (not $)
Success Targets
- Merchants: 5–10 recruited, live offers
- User engagement: 50+ verified redemptions
- Merchant feedback: NPS >= 50, "would pay again" >= 70%
- Operational health: Fraud rate < 5%, team alignment on phase 2
3-Phase Timeline 📅
Phase 1: Setup (Weeks 0–3)
✅ Goal: 5 merchants live, MVP dashboard, establish ops
- Recruit 1st 5 merchants (use partner's network)
- Deploy minimal dashboard (create offer, CSV export, QR codes)
- Soft-launch Stripe integration (test transactions)
Phase 2: Scale Testing (Weeks 4–9)
✅ Goal: 50+ redemptions, validate pricing model, collect feedback
- Recruit 3–5 more merchants (target: 8–10 total)
- A/B test flat campaign ($150) vs PPC ($1/redemption)
- Weekly check-ins with key merchants
- Monitor fraud, churn, and user behavior
Phase 3: Wrap-up & Decision (Weeks 10–12)
✅ Goal: Go/no-go for phase 2 expansion
- Finalize merchant feedback summary & pricing recommendation
- Produce pilot report (cohort metrics, NPS, testimonials)
- Document operational playbook
- Pitch phase 2 (geographic expansion, hiring, funding)
Risk & Reward Snapshot 🎯
Top Risks (with mitigations)
- Low merchant adoption → Use partner's network; lead with high-value offers
- Users don't check in → Gamification (badges, streaks); Wave social feature for engagement
- Fraud erodes merchant trust → Geofence + QR verification; monitor closely; set 5% threshold
- Churn > 10%/month → Increase support; re-evaluate offer terms; pivot model if needed
Top Rewards
- Proof of concept: 50+ redemptions validate product-market fit
- Merchant feedback loop: Direct insight into pain points, feature gaps, pricing sensitivity
- Operational playbook: Repeatable processes for phase 2 (onboarding, support, fraud, billing)
- Founder credibility: Track record + testimonials for fundraising, partnership opportunities
Unit Economics (Merchant-level) 💡
Merchant Break-even Math
Flat campaign: $150/month
- Requires ~8 redemptions/month to break even (assuming $10 COGS/redemption)
- ROI positive if 8+ redemptions/month; loss if < 8
PPC: $1 per redemption
- Only attractive if merchant sees 100+ redemptions/month (=$100 revenue)
- Low initial barrier; scales with success
Hybrid (subscription + PPC): $50/month + $0.50/redemption
- Good compromise; more predictable than pure PPC; cheaper than flat campaign
- Attract price-sensitive, volume-ready merchants
Merchant Narrative (What to say when recruiting) 💬
"We're testing a new way to drive foot traffic. Free to try. Here's how it works:
- You create an offer (e.g., 'Buy 1 drink, get 50% off when you check in')
- Users nearby see it, check in with one tap, and redeem
- You see who came, how many redeemed, and when
Cost: Either $150 for a weekend campaign, or $1 per verified redemption. Your choice.
Risk: Low. If it doesn't work, you've only spent the cost of coupons you already give out.
Upside: Even 10 new customers this month is worth it. Plus you get data."
Competitive Differentiators 🏆
| vs. Yelp | vs. Groupon | vs. Foursquare |
|---|---|---|
| Simpler offer creation | Merchant-friendly pricing | Modern PWA + no app friction |
| Lower fees | Healthy margins for merchant | Active community (Wave feature) |
| Venue-native (not user-centric) | Focus on repeat customers | Merchant monetization built-in |
Immediate Action Items (This Week) ✍️
- [ ] Recruit: Have partner identify 3–5 merchant targets; schedule calls
- [ ] Product: Finalize MVP scope (what's built, what's stubbed; see PILOT_STRATEGY.md)
- [ ] Payments: Set up Stripe test account; integrate into offer form
- [ ] Ops: Draft merchant onboarding email & support runbook
- [ ] Timeline: Confirm phase 1 deadline (3 weeks); book weekly check-ins with team
Key Decision Points 🚦
| Week | Decision | Go | No-Go |
|---|---|---|---|
| 3 | MVP live, 1st merchant onboarded? | Proceed to scale | Fix critical bugs, extend timeline |
| 6 | 50+ redemptions? Pricing validated? | Scale testing phase | Adjust offers/pricing; test longer |
| 9 | NPS >= 50? Willingness-to-renew >= 70%? | Greenlight phase 2 | Iterate product; extend pilot |
| 12 | Team alignment on model & roadmap? | Expand to LA/SF/Austin | Pivot to B2B SaaS or feature |
Resources & Templates 📖
- Merchant onboarding email: [See PILOT_STRATEGY.md, Phase 1 deliverables]
- Pricing templates: [BUSINESS.md > Sample pricing templates section]
- API examples: [BUSINESS.md > API examples section]
- Fraud detection rules: [PILOT_STRATEGY.md > Fraud & abuse section]
- Unit economics calculator: [PILOT_STRATEGY.md > Unit Economics section]
FAQ
Q: What if we can't recruit 5 merchants in 3 weeks?
A: Extend timeline to week 4–5. Parallel path: use cold outreach + partner's warm intros. Set threshold at week 5: if you have 3 merchants + commitment from 2 more, proceed.
Q: Should we charge for the pilot?
A: Yes. Charge something ($150 or PPC) to ensure merchants are serious. Free pilots attract tire-kickers who don't provide useful feedback.
Q: What if redemption rate is only 10% vs. 25–40% target?
A: Offers aren't compelling. Test higher-value offers (BOGO vs. 20% off), adjust geofence radius, or add Wave social engagement. Don't abandon; iterate.
Q: When do we hire?
A: Phase 2, post-pilot. If pilot succeeds (NPS >= 50, churn <= 10%/mo), hire 1 merchant success manager (month 4) + 1 engineer (month 5).
Q: Can we do this part-time?
A: Not advisable. Requires full founder focus for 3 months. Recommend: PTO from YouTube for pilot sprint, or transition to part-time.
Docs Reading Order (for newcomers) 📖
- Start here: This file (quick reference)
- Context: FOUNDER_CONTEXT.md (market, positioning, narrative)
- Product: BUSINESS.md (offers, monetization, APIs)
- Execution: PILOT_STRATEGY.md (timeline, budgets, metrics)
Last updated: January 2026
Maintained by: [You]
Next review: End of phase 1 (week 3)