Why the Future of Work Will Be Dominated by Asia

Willix Halim

Vice President of Growth

Freelancer.com

email: [email protected]

twitter: @willixh

Welcome to the Future

You are here

mailto:[email protected]

A remarkable period of innovative disruption unlike

the world has ever seen..

You are here

What does this all of this mean?

“Software is Eating the World”– Marc Andreessen

What does this all of this mean?Advertising

Physical Software

What does this all of this mean?Telecommunications

Physical Software

What does this all of this mean?Retail

Physical Software

What does this all of this mean?Books

Physical Software

What does this all of this mean?Scrapbooking

Physical Software

What does this all of this mean?Notepad & Pen

Physical Software

What does this all of this mean?Maps

Physical Software

What does this all of this mean?Search

Physical Software

Physical

What does this all of this mean?Music

Software

What does this all of this mean?Fashion

Physical Software

What does this all of this mean?Retail Estate

Physical Software

What does this all of this mean?Recruitment

Physical Software

What does this all of this mean?Photography

Physical Software

What does this all of this mean?Video

Physical Software

What does this all of this mean?Travel

Physical Software

What does this all of this mean?Reviews

Physical Software

What does this all of this mean?News

Physical Software

What does this all of this mean?Education

Physical Software

What does this all of this mean?Coupons

Physical Software


Flea markets & Garage Sales

Physical Software

What does this all of this mean?Healthcare

Physical Software

What does this all of this mean?Point of Sale

Physical Software

What does this all of this mean?Financial Planning

Physical Software

What does this all of this mean?Money

Physical Software


Central Banks

Physical Software


Education

Physical Software

What does this all of this mean?Hang with Friends

Physical Software


“The Reimagination of Everything”– Mary Meeker

60% The other

of the world’s population areabout to join the Internet.

It’s 2015.

World Population

7,144,000,000Number on the Internet

3,035,749,370 (42.3%)Source: Internet World Stats & United Nation (June ’14)

North America310 million users87.7% penetration

Europe582 million users70.5% penetration

Latin America320m (of 612m)52.3% penetration

Africa298m (of 1125m)26.5% penetration

Asia1.386b (of 3996m)34.7% penetration

Worldwide Internet Penetration June 2014*

* latest data

86% of users of top sites already foreign

>2x as many Chinese than Americans

“The next decade will see more baby boomers leave the workforce than 15-year-olds enter it” …“In Japan, the labour market population has been in decline since 1995. This aligns almost precisely with the onset of the malaise in the Japanese economy. Here is a country that does not do immigration and that collapsed its birth rate 40 years ago. “…“India, on the other hand, is very different. One thing that is not well understood with India is that it is now at a one-in-a-hundred-year peak in the sheer volume of people entering the labour market population. There is currently a net injection of 14 million people aged 15-64 every year into India's population.” *

* Source: Bernard Salt

Demographics are at Inflection Point

5 billion peopleare on an average wage

of $10 or less per day

The first thing they are doing on the Internet is raising their economic status.

And it’s never been easier to learn a trade.

In 2011, Sebastian Thruntried a bold experiment..

offer his class which normally numbers 200

students online for free.

We will mark your assignments and mark your exams.. And give

you a certificate of completion.. for free.

BOOM!160,000

enrolments!8.5x population of Stanford

23,000 students passed.

Of the top 453 students, not one went to Stanford!

We turn 99.9% of our customers

away!!!!!

Bad Business.

Good Business.

Pre-sales

Marketing..

“In 50 years there will be only 10 institutions in the world delivering

higher education”Sebastian Thrun

Or something more sinister..

I think there might be only 2.

Existential threat

sellers

Online marketplaces

buyers marketplace

This is the disintermediation of education.

With online marketplaces, winner takes all.

Online marketplaces

Winner takes all

18,217 students

21,225 students

1,600,000 students

3,000,000 students

12,000,000 students

Why would you want to teach at Stanford to a class of 200 when

you can teach to millions online?

Years to teach 160,000 students

Doing it for K-12.

40 languages4100 micro-lectures244 million lessons delivered1 billion problems answered

YouTube ChannelsMIT: 50 million views Khan Academy : 268 million views

Khan Academy

Simultaneouslyevery industry is now

digitised.

The World is Flat.

The World is Flat.

The World is Flat.

64

Products

DevelopedWorld

DevelopingWorld

Services

The world is repeating itself 20 years later

7,542,635PROJECTS & CONTESTS POSTED

$2,712,502,704TOTAL VALUE OF PROJECTS POSTED*

15,268,912REGISTERED USERS

* Data as of 15th February 2015. Data aggregated for all acquired marketplaces since 2001. AUD.

66

We help small

businesses,

startups and

entrepreneurs

turn that

spark of an idea

into reality.

Industrial design of a water

kettle for $240

67

We are changing

lives in the

developing world

by providing

opportunity and

income.

➔ Started May 2009, history since 2000

➔ > 14,800,000 users from >234 countries/regions

➔ >7,300,000 posted projects to date, valued at > $2,000,000,000 USD

savings delivered to small businesses in the west

➔ One of the top websites globally by traffic

Freelancer.comFreelancer Globally

We are in the early stages of replicating a country in software.

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

9,000,000

10,000,000

11,000,000

12,000,000

13,000,000

14,000,000

FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

Population >15,200,000 and growing

Covering 234

countries,

regions and

territories

Freelancer.com Population overtakes

Belgium

Majority of our

freelancers are from

Asia

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000


Economy >7,500,000 Projects so far

Total value of

projects

posted all time

over $2bn

Our Top 10 Freelancers

India

Pakistan

United States

Bangladesh

Indonesia

Philippines

China

Romania

Vietnam

Ukraine

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000


Bangladesh

73

Bangladesh

74

Pakistan

75

Nepal

76

India

77

Bangladesh

78

Philippines

79

Beautiful product

80

81

82

Sliding Puzzle App Design for $55

Source: https://www.freelancer.com/jobs/Graphic-Design-Photoshop/Design-App-Mockup.6453239/

83 Source: https://www.freelancer.com/jobs/threed-modelling-Rendering/Create-model-product-Printed/

Design of a Fader for 3D Printing for $64

Logo for a Fast Food Takeaway Shop for $175

84 Source: https://www.freelancer.com/contest/Design-a-Logo-for-fast-food-takeaway-shop-139166.html

Ambient 3D Modelling of a Wardrobe for $90

85 Source: https://www.freelancer.com/contest/Ambient-in-d-modeling-with-our-product-wardrobe-122619.html

apricotseeds.co.nz website

86

Source: https://www.freelancer.com/contest/Graphic-Design-Redesign-FRONT-PAGE-Only-apricotseedsconz-website-13937.html

Industrial Design of a Water Kettle for $240

87

apricotseeds.co.nz website

88

Source: https://www.freelancer.com/contest/Graphic-Design-Redesign-FRONT-PAGE-Only-apricotseedsconz-website-13937.html

Design of an Optical Store for $10 USD

89 Source: https://www.freelancer.com/contest/118908.html. Prize ₹600.

https://www.freelancer.com/contest/118908.html

Crowdfunding

Broke the CSS!

“We are becoming Hyper Connected”- Tom Friedman


Distribution is unprecedented.


% of US Households

Technology adoption is accelerating

➔ In 1900, <10% of families owned a stove, or had access to electricity or phones

➔ In 1915, <10% owned a car➔ In 1930, <10% owned a fridge or washer➔ In 1945, <10% owned a dryer or air-conditioning➔ In 1960, <10% owned a dishwasher or colour TV➔ In 1975, <10% owned a microwave➔ In 1990, <10% owned a cell phone or Internet

➔ Today.. more than 90% own all the above.

Not so long ago.

Customers are buying faster

.. and faster

.. and faster

.. and faster

Galaxy S4

40m in 2Q

Galaxy S3

50m in 5Q

.. and faster

0

200

400

600

800

1000

Dec

-04

Jul-

05

Feb

-06

Sep

-06

Ap

r-0

7

No

v-0

7

Jun

-08

Jan

-09

Au

g-0

9

Mar

-10

Oct

-10

May

-11

Dec

-11

Facebook(millions ofusers)

.. and faster!

100,000,000 users in 45 days

30 DAYS

900,000 in 3 days

1,600,000 in

3 days

• 200m users in 6 years

• 1,000m users in 8 years

• 100m users in 45 days?!?

Internet Scale

Using the Internet, you can distribute a product or service

to these 3+ billion people

Distribution firehoses reach these 3+ billion

instantly

Facebook Firehose

Facebook Firehose

• Founded in July 2007• Financed in July 2008• Makes silly flash games

• 2011 revenue $1.2 billion

Gamification

• Experience points• Levels• Perks• Badges• Drops• Leaderboards• Credits

Growth Engineering

ENTER GROWTH ENGINEERING

What is Growth Engineering? Growth Engineering Best Practices

Apple Firehose

Apple Firehose

• 1,200,000 apps• Poor search & discover in Apple AppStore• In 2009, 3 students from University of Helsinki got in early with a mobile game• Information cascade in top 10 for games

• 1 billion downloads• 2011 takeover offer $2.25b from Zynga• 2013 revenue €156 million• $9 billion valuation

Rovio

Google Firehose

Demand Media

• 13,000 freelancers

• “High quality” content

SEO optimised content

Google ads

5 years later in 2011, Demand Media went public with $325m in revenue at $1.5bn mkt cap.

So egregious was this business model (In 2011, Google generated $11 billion in “Ad Network” revenue, about 30% of which came from the likes of Demand Media), that it was forced to change it’s algorithm in a series of ensuing “Panda” updates.

Other Firehoses


Every business today is an Internet business.

What does this all of this mean?All this stuff is free.

Virtualised computer.. Only this computer is a

hotel reservation system!• PBX

• Hotel Reservations• Wifi

• Minibar• Movies

Free!

What does this all of this mean?All this stuff is cheap.

What does this all of this mean?All this stuff is cheap.

Even if none of this stuff makes sense to you, freelancers can put it

together for you.. cheap!

What does this all of this mean?You can start a company off a credit card

What does this all of this mean?A new class of Venture Capital has arisen

What does this all of this mean?PCTools / Spyware Doctor

• Outsourced original software for $1000

• Bootstrapped to profitability

• Raised financing only at very late stage

Sold to Symantec for $300 million 6 years later.

What does this all of this mean?RetailMeNot.com

• Built with $30 in one weekend

• Bootstrapped to $30m in revenues

Sold to WhaleShark for $90 million 5 years later.

What does this all of this mean?Kaskus

• Built with $50 in one weekend

• ~ >100m USD in valuation

And many more…

5 Billion Internet Users by 2020

Internet Users

Mobile only Internet Users

Internet Scale Growth

2% of.. The Internet.Alexa rank #16 in the US

Years to reach $1 billion in revenue

0

2

4

6

8

10

1976 1984 1986 1994 1994 1995 1997 1998 2007 2008 2009 2010 2012Year Started


The capital efficiency and growth rates of Internet

business models are unprecedented.. in history.


Welcome to the technology industry.


Welcome to the future.