Korporatio’s Monthly Recap: March 2020

Here we go with our March recap!

Korporatio aims to create a new generation of cutting edge, truly global businesses, led by entrepreneurs who are citizens of the world. A new era in which everyone is empowered to incorporate, innovate and realise their dreams.

 

GENERAL

The world is currently facing a serious epidemic. If you haven’t been living under a rock you definitely know what the COVID-19 is, what is happening around the globe between lock-downs and market crashes and how we are all getting ready for some very difficult times. This month’s recap will be a bit different, as I feel it is essential to address the current situation. If you are curious to learn how Korporatio is dealing with the current world crisis, keep reading.

 

MARCH IN DEVELOPMENT

Around mid-March, the crypto market crashed down wiping out around 40% of its value in less than 48h. Although the crypto crash didn’t directly affect us, it slowed down our daily operations.

To deploy each Smart Company there are around 60 transactions that are sent to the Ethereum blockchain. We have automated the entire process long time ago to avoid any possible human mistake. On a super good day, we are able to set a generic GWEI price, for the gas, at around 1-2. During the crypto crash a few weeks ago, the average GWEI price moved to 115-130 GWEI. Such costs made it impossible to deploy Smart Companies for about a week without losing money.

How did we manage deploying Smart Companies?

We did experience something similar back in January 2018, so we had made sure to always have some inventory available. Therefore, we managed to deploy new Smart Companies without any slow down. However, as our inventory got created in the past, we had to deal with some bugs with the new features.

As you probably know by now, quality is super important for us.

Therefore this month has been spent on fixing those old bugs and ensuring there’s no delay in the new Smart Companies that have been created.

I think we got partially lucky to not have any major issues during this crash. That said, however, the past weeks have once again shown how Ethereum needs to solve its scalability issues as soon as possible. A lot of companies are now starting to develop use cases on Ethereum. These companies may not be too interested in the price swing, but they do need to have the infrastructure in full operation at any given time.

This is the second time in the past 26 months that I’ve seen something like this happening. Numbers wise, Ethereum is still awesome. But I can’t wait for ETH 2.0 to solve these issues once and for all.

 

MARCH IN MARKETING

On the marketing side, the virus has had quite a huge effect on our PPC campaigns. We have seen a decrease in the number of clicks on our ads of around 35%.

This decrease can be easily translated into a quite serious drop in the number of leads that have been generated during this month.

The plan was to start the first test on video ads, but unfortunately, considering the current situation I’m not even sure it would be wise.

I’ve read that both Google and Facebook will give free credits to advertisers that have been using their platform since 2019. It is not clear yet if all SMEs will receive something as communications will be sent out in the coming months. This would obviously be good news, because even if you manage to cover 1-2 days of ads, it’s still a small help that can make the difference. However, we still don’t know if Korporatio will be included in the list of companies that will receive free credits.

Before Singapore closed down its bars and social venues, I got the chance to run another interview with the team of Hardforking and few others involved in the blockchain space. Not sure when the video will be live, but we will for sure share it on our Twitter and Linkedin.

Overall, we can confirm that the COVID-19situation is slowing down the number of searches for people looking to set up new entities. We will have to come up with some new strategies to fight back. However, let me just say that under no circumstances would we run ads mentioning how our product can help against the COVID-19 situation. Marketing managers, please try to be not so cheap…

 

MARCH IN PARTNERSHIPS

Partnerships is another area that this month got an enormous slow down. Out of 4 conversations that we are having with different firms and governments, only 1 managed to not go in full silence.

This, to be honest, comes at no surprise. Governments are now in the front-line fighting the virus and we know they have bigger headaches to think about than partnerships.

We remain confident that once the virus situation will get under control, those conversations will get back on track and possibly even move faster than before. In the meantime, we can just try to do our part and not push for something that is not the priority.

On behalf of the entire Korporatio team we would like to express a big thank you to all the doctors, nurses and all healthcare workers that are currently risking their lives to keep all of us safe. You are the only thing keeping us away from doomsday.

 

FINANCES

Due to what’s happening in the financial sector over the past weeks, many of our users have reached out to ask how Korporatio was doing and what would happen to their Smart Companies in case we would go out of business.

This is an important question and not the first time we’ve been asked this, so let me take the chance to clear a few things out:

First thing first, we would like to remind everyone that Korporatio is just a service provider. The minute a Smart Company is deployed, we lose access and view to what is happening inside the company. Therefore, with or without Korporatio, your Smart Company will still be alive and functional, just like it normally would.

The only thing you will have to remember is to pay the yearly government fees. Otherwise that violation can lead to the government to close down your business entity.

How are we managing at Korporatio?

We normally don’t share too much about our financials. Anyways, as we always preach how important transparency is for us, it’s time to put the money where our mouth is.

March has been the month we have generated the highest revenue since the creation of the company.

Therefore, we would like to share with all of you, that Korporatio today is in great health.

Many of you may find this quite strange, considering the drop in PPC. Quite frankly we did have a few users that requested to have their Smart Companies terminated as the virus was hitting their businesses quite hard.

So how did we manage to get the highest revenue to date?

Quite simple actually. Not all business sectors are currently seeing a crisis. Some are literally booming in these months. Therefore those entities are in need of setting up multiple subsidiaries to ensure their businesses can meet the current demand. We have tried to be as industry agnostic as possible by creating a product that could be useful for anyone. It seems that this strategy is now saving our accounts, simply because even if some sectors are going down, others are growing, allowing us to still generate revenue.

The importance of community

The second and most important reason for this growth is also to be attributed to our community.

We have seen a huge spike in the number of referrals. This community is basically keeping Korporatio healthy and therefore, a big thank you. You are allowing us to dedicate all our energy to deliver the best experience in corporate governance.

To all business owners out there, put your teams and clients first, because when you do, those people are the ones that will give you back the most insane value ever.

Finally, this virus is changing a lot how we spend our days, what we can and cannot do. It’s bringing out fears and new type of behavior in many individuals. However, people are amazing, creativity is being cultivated in everyone’s homes, new ideas, new dreams. We are in this all together, and we will get out of this together as well. To be honest, I’m super excited to see all the new concepts that will be created in these coming months. Stay strong!

For this month, this is everything we have to share, as usual, we would love your feedback, and please join our Discord!