MJBullsPodcast 0009 Good Harvest Co: Eric Meth 10/01/18
MJBulls 0009 Good Harvest: Eric Meth 10/01/18
Eric Meth: [00:00:04] And the digital media side is extremely limited. You're not allowed for a variety of reasons to use most of those scalable options in a market like Google and Facebook and Instagram.
Dan Humiston: [00:00:21] From Buminit media it's the MJ bulls podcast a show about raising Cannabis Capital.
Dan Humiston: [00:00:31] I'm Dan Humiston and on today's show how good harvest Cois using existing cannabis customer data to overcome the current cannabis advertising roadblock
Dan Humiston: [00:00:47] Hey Eric, Thanks for joining us on The MJBulls podcast.
Eric Meth: [00:00:50] Dan thank you.
Dan Humiston: [00:00:51] Appreciate you joining us on today. Well today we're with Eric Meth from his company good harvest c a data led cannabis audience platform and how investors can participate. But before we get to the good harvest story Eric let's talk a little bit about your career and what led you to cannabis should end.
Eric Meth: [00:01:08] So I've always been involved in the consumer package goods and CPG industry tied into retail maybe from a marketing and advertising perspective for a good 25 years or so. I started early with consumer promotions migrated over relatively early to digital media. I worked with large media companies like The New York Times News Corp.. But the last seven years had responsibilities overseeing both consumer packaged goods and retailer namely around data and working with that data to create more efficacy through advertising technology. When I looked at the cannabis industry probably a good year ago or so I really saw through a CPG marketers lens. This is an industry that's growing rapidly. So looking at the similarities and the comparisons I really wanted to take that great base of 25 shares of career experience and apply it in a really thoughtful and purposeful way to the candidates.
Dan Humiston: [00:02:06] Well I know most of our listeners understand the cannabis industry but I don't think any of them completely can appreciate or understand why the marketing is so challenging. Can you tell our listeners why current cannabis conditions make marketing to customers in the cannabis industry so much harder than they are at in other industries.
Eric Meth: [00:02:24] The main challenge that exists right now is that there's a limited number of media options in the market that allow for brands to reach those canvas shoppers and cannabis consumers in the digital media side is extremely limited. You're not allowed for a variety of reasons to use most of those scalable options in a market like Google and Facebook and Instagram.
Eric Meth: [00:02:48] Paid search and social media also have a lot of limitations. Digital media that is available typically has very low quality Midtown longtail sites with blogs sites don't really reach a huge concentration of desirable audience and mobile options are very scarce too. And that's important when you're especially trying to target within specifically defined areas where cannabis is legal. So that's that's really the limitations that are there.
Dan Humiston: [00:03:14] Yet if there is if there is a way to overcome those cannabis limitation what kind of opportunities would that create. Just obvious opportunities in those maybe more less obvious opportunities for companies that could overcome these roadblocks.
Eric Meth: [00:03:29] Sure.
Eric Meth: [00:03:29] So you know I think the obvious ones and all this is predicated on that last point where we're good harvest company focused very specifically on leveraging that local cannabis shopper data. It's really the purest form of intent. While you can model behaviors through the way people browse websites or mobile devices and you can mimic that the traits of that audience it's not super definitive. Whereas if you're taking data coming from the source and you're tying it back to an actual shopping and more so importantly a buying behavior that's really the purest form of intent. When you're putting down hard earned money for a product pretty obvious that you want that product and when you start coupling that with things like frequency how often are you purchasing that location again which is extremely important to adhere to advertising guidelines and regulations. It really becomes important to be able to focus on where those purchases are occurring how often they're occurring. So you can paint a really vibrant picture of those consumers and the obvious is for those brands to be able to take that highly targeted data and create more efficacy around digital media make that day data segments portable so they can activate it on either websites or mobile devices or other forms of digital media channels that are out there
Eric Meth: [00:04:51] I said the non obvious side is mainstream marketers. You have much larger budgets specifically coming from consumer packaged goods advertisers. Quick serve restaurants fast food restaurants brands like pizza rolls brands like Uber and Lyft who want to avoid consumers and have them avoid impaired driving. Boy the munchies its trait example that lays potato chips start getting into things like that and this becomes another way that those marketers again can focus on those known consumers versus those that soon consumers
Dan Humiston: [00:05:28] Before we got on we talked about you mentioned a little bit about an exchange in which which I was first I've heard this and now I don't know if we want to get super deep into this but maybe you can just give everybody an overview of what you told me.
Eric Meth: [00:05:44] Sure yeah this is the part where it gets fun where we can take all that rich data that data has to go somewhere and it has to be like I mentioned earlier portable and that's where the notion of Media Exchange has come in. That was a large part of the last seven years of my career. If you think of media exchanges like the stock market instead of stocks you're basically trading inventory and that inventory could be on a Web site it could be on a mobile device it could be streaming audio Ad on Pandora every publisher has additional inventory that they need to sell if they have their own sales team. They're most likely not selling all of their inventory. If they don't have a sales team they're relying on these exchanges to have brands access that inventory much like stocks. If you think about a buyers set and a seller set that's where the exchanges come in. It's effectively creating a marketplace so buyers can be connected with those sellers that are selling that inventory on these open marketplaces and a bidding process starts happening at that point.
Eric Meth: [00:06:48] That's where the value around that inventory becomes created. You could do a lot of interesting targeting and there's lots targeting opportunism to take advantage of within these exchanges.
Eric Meth: [00:07:00] Some of the exchanges have data on hand. Some of them allow brands to bring their own data to the table. This is a meeting in the middle were good harvests will be essentially interacting with those exchanges where data management platform at the end of the day. Integration within those types of exchanges allows for those marketers to add on that extra piece of data tied to those shopping behaviors. So instead of just reaching every single cannabis consumer that resides in the state of Nevada we could focus our efforts just on specific counties or ZIP codes based on those known buying behaviors by layering on a data component. There's actually a cost to it per thousand in your world the CPM we have the ability to leverage up those CPM. So it's better for the brand at the end of the day while they're spending more. They're targeting efficacy is increasing and the results in turn increase as well.
Dan Humiston: [00:07:48] And that's what good harvest companies is going to bring to the table. Can you explain to us exactly how your company will do that. Sure.
Eric Meth: [00:07:57] So it starts with those owners of the data.
Eric Meth: [00:07:59] It's critical and one of the one of the main components that we're laser focused on is purposeful use of that data and really paying strict attention to not exposing any kind of personal information off of that the targeting opportunities come through not so much the person who's making the purchase but the device that's activating that purchase. There's a lot of retailers who are putting their inventory online make it easier for their consumers to shop before they come into the store they might shop they might purchase online if they're in a the state and then have either delivered through a service or they might have a expressly pickup now in addition to coming into the store day in and day out for those types of consumers as we're starting we're starting with those consumers that are interacting through those desktop and e-commerce platforms that are being used by the retailers are there browsing on their mobile device there is anonymous data that can be collected which is and exposing any kind of personal information about that user it's allowing the personal information to be kept by the data owner which is the retailer retailer 100 percent owns you as a consumer by virtue of you transacting with them. So by taking those devices and matching the buying and shopping behaviors against the device we can match that divisive. I'm a shopper and I go on to say Green Dragons mobile site before I go on and purchase at their store. One of the store locations in Colorado they've got identity against my iPhone my iPhone and them being targeted wherever I may be. I may be on an airplane maybe on a mobile Web site but that idea is being triggered and a brand can effectively reach me as the device and moving the device as the ideal consumer who purchased the edibles product the green dragon.
Dan Humiston: [00:09:39] Oh my gosh. That's crazy.
Eric Meth: [00:09:41] That is yeah that's really great stuff.
Dan Humiston: [00:09:46] Well tell us how investors could get involved with your company.
Eric Meth: [00:09:50] Perfect. So right now full full startup pre revenue revenue mode got a seed round in play structured everything under a convertible note.
Eric Meth: [00:09:58] It's a target raise a one point five million. We've got a 20 percent discount on a follow up rounds with a five million dollar valuation cap. The trigger against that cap is a one point five million on a follow on round. I've broken the raise into three tranches of a half million each. So right now we're in phase 1. We've got about 60 percent of that raised to date. We're looking to close that by the end of 2018 to continue working on our minimum viable product or in your prototype that allows us to get to Phase 2 which would include a beta launch bring in some first revenue test clients in the first half of 2019 and then traunch 3 really focus on the end of 2019 when we start showing some traction some monthly recurring revenue projections to annual recurring revenue. But we see this as a solid opportunity to become the driving about a million and short term revenue within the first year of operation seeing anywhere between 30 to 50 million between the first three to four years with really healthy margins attached to it once we have that base built lot of the investment cost is really on the technology side that technology becomes a lot more scalable particularly as more markets start coming online.
Eric Meth: [00:11:05] Regardless we're seeing that trend where more states are getting onboard cannabis coming obviously onboard full on in the next month or so and that's where we see more of the opportunity more sales leads and more needs for marketing and partitioning the total sales against that Mark. And we're doing those of those forecasts against.
Dan Humiston: [00:11:25] Well Eric Mathis the CEO of good harvest Co which is a data led cannabis audience platform and all of good harvest information is on the MJbulls Web site at Mjbulls.com including their pitch deck which you really should look at because it takes a fairly technical business and makes it understandable. It also lists everyone that's on their advisory team which by the way is very impressive so if you have a chance go to the mjbulls website and check out their pitch deck really makes a complicated or technical business not so technical. Eric thanks for being with us on the Gable's podcast. Thank you.
Eric Meth: [00:11:59] Dan's been great appreciate it time and look forward to seeing the response I'm happy to answer any questions you want to reach me. Invest. Good harvest. CEO. That message will find its way to me. Appreciate the time.
Dan Humiston: [00:12:13] Sounds good. Good luck Eric.
Dan Humiston: [00:12:21] Thanks for listening to the MJBulls podcast to learn more about today's guest or to apply to be a guest. Visit our Web site at MJBulls.com if you like our sho give us a review on iTunes. Today's show was produced by Buminit media. I'm Dan Humiston and you've been listening to the MJBulls podcast.
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