FAQ - Luxury District
What is LuxuryDistrict?
#LuxuryDistrict is a club in where brokers and clients trade high-end goods from event marketing and blockchain transactions.
What we are building?
Luxury District will be a private club for members of luxury industries seeking creative media solutions and integrated technologies for advertising, marketing and wealth management services. We build relationships at industry events, create advertising campaigns and help our customers to close big deals in less time and safely through our marketing blockchain platform.
When can I receive it?
You can now book the exclusive campaign and event service for our first 7 VIP customers in Los Angeles, CA. We keep in touch with all clients and potential members updated about any changes in the launch and delivery deadlines for our services and legal guarantees.
How much will it cost?
You can get early access to our VIP marketing services and events for social media advertising with membership plans starting at $20,000 annually. We also offer membership plans for users, visitors and guests from $20 up to $2,000 annually. Media Kit & Plans.
Our technical co-investor is #FasterCapital the largest virtual startups incubator in the world. We will establish a service agreement with our clients valid for 1 year, including a refund policy before production or service delivery.
We offer 1% equity in our company to each of our 7 VIP Customers based in Los Angeles CA. Depending on your membership plan, we offer benefits such as tickets for the online pre-launch event and local event, free access to the platform for 3 months, 6 months, up to 1 year, as well as visiting our club for 1 day, 6 months, or access up to 1 year.
What revolutionary technology will we create instead of gradual improvements?
We are creating a blockchain platform all-in-one to integrate advertising services, social media, marketplace, hotels booking, chartering, clubs, smart cities projects and financial education.
Why is the right time to start our business?
The global luxury market moved $1 trillion in 2018, with Online Shopping accounting for $30 billion of luxury sales. Influencer marketing estimates sales $10 billion by 2020. The blockchain technology can transform the luxury industry and the biggest players are adopting this tool not only as a way to stay ahead of the curve, but to benefit from improved IP protection and product lifecycle transparency. This is a trend and positive change in consumer behavior and business culture in which we are collaborating.
How can we start with a large portion of a small market?
We will invite an average of 1,400 brands and influencers in each of the 100 richest cities in the world, building a community of 140,000 users and customers. LuxuryDistrict aims to win the first customers for our advertising and events service: 7 in the first year; 36 in the second year; and up to 360 from the third year. Offering a VIP service to our customers in Los Angeles and around the world. The startup will be scalable from our blockchain marketing platform that will serve hundreds of customers or thousands of transactions annually on a global level.
Who will be available for the right team?
Our initial team will consist of 4 executives, 3 advisors, 1 influencer, 7 VIP clients, 2 investors, 1 director, 1 manager, 1 producer, 1 associate and 1 assistant. Everyone with experience in the media industry, advertising and luxury market.
The FasterCapital incubator is our leading technical partner and investor, responsible for the technical development of our product from A to Z, ensuring a team of developers, as well as support in management, marketing and sales.
Meet Our Team.
What means do we not only create but deliver the product?
LuxuryDistrict website and social media are the main channels of communication and sales, as well as delivery of our service, where we will publish the content and advertisements of our customers. Our difference is in the daily production of campaigns and events distributed for up to 360 days with control of the client's budget until their product is sold generating ROI higher than expected. The technology platform will be delivered first to our VIP customers for free trial for a limited time.
Will our market position be defensible in 10 years and in the future?
Our advertising and events service is our basis for the development of new clients, limited to 360 launches per year, produced in a single location or on demand. Our global scale will be through our blockchain marketing platform, where we will ensure the principle of trust relationships for the purchase or sale of luxury goods: People! The class of realtors, yacht brokers, aviation brokers and jewelers, is a very rich and powerful class. Although they invest thousands of dollars in technologies to facilitate sales and relationships with their customers, LuxuryDistrict will be an exclusive platform for advertising, negotiation, contract management, payments, public and legal registration.
What unique opportunity do we identify that others do not see?
The world is focused on ostentation of luxury things, we are going to change that culture helping people and companies to value their own history and identity regardless of the cost of their dream. Our mission is to spread the wealth management culture through media that elevates people by providing the tools for them to build and share their most expensive dreams.
What does your company do?
LuxuryDistrict connects brokers and clients to trade high-end goods. We build relationships at industry events, create social media advertising campaigns and help our customers close big deals in less time and safely within our blockchain marketing platform.
Where will your company be in 5 years?
A unique club in a unique city. LuxuryDistrict will always be open to the creative and business community of Malibu, CA. Our local team will always be available to assist our clients, brokers and influencers or visitors who can come from all over the world. We will always be improving and integrating our global blockchain all-in-one marketing platform with new advertising services, social media, marketplace, hotel booking, charter, clubs, smart city projects and wealth management services.
Why did you choose this idea?
Currently, there is great friction in the intermediation between brokers and consumers of luxury goods that goes beyond market competition. This includes the noise of social media, the growth of influencer marketing and the increased cost of acquiring customers through digital advertising. We believe that the best way to foster real engagement and relationships with the rising new rich is to provide an exclusive digital platform for the luxury market and a local club to share real experiences with our customers.
Why is this a good idea, right now? What changed in the world? Why wasn't this done a few years ago?
The luxury market is a $ 1 trillion industry, with most brands and consumers demanding the same factor in common, exclusivity. But today we live in the culture of ostentatious luxury, and despite influencer marketing moving $ 10 billion, fake influencers cost brands $ 100 million annually and ad blockers cost advertisers $ 42 billion.
LuxuryDistrict will promote the culture of wealth management, valuing the history and identity of brands and people at networking events, advertisements on social media and inspiring new consumers looking to purchase luxury goods in their time and safely.
When a customer is looking for a marketing agency, they can even have coffee at the first meeting and then spend their budget. When looking to buy or sell a house, aircraft or boat, they are looking for a broker who can provide a good experience such as visits or events. The main communication and commercialization channels used by the luxury market are on mass platforms, which makes it difficult to meet the exclusivity required by the market.
What is your proudest accomplishment?
After 5 years of development and concept testing, LuxuryDistrict gathered over 18,000 followers on social media and 1,400 potential customers based in Los Angeles. We also attract the interest of hundreds of professionals and some investors who liked our business idea. Today, our greatest achievement is the support of the FasterCapital incubator, committed to investing 50% of the money necessary for our technical development, building our product from A to Z.
How far along are you? What's your biggest obstacle?
The Luxury District completed 5 years of development in July 2020. Our biggest obstacle is reaching customers, as we need to build a professional virtual and physical presence with a legal business entity, influential people in the Los Angeles luxury market and a platform ready to serve customers.
What do you understand that your competitors don't?
We believe that brands, influencers and consumers can build a real long-term relationship, far beyond spending millions on advertising or investments on various fragmented platforms or distribution channels. Our differential is in building an exclusive community for the luxury market, creating campaigns and events that positively inspire people, controlling our customers' budget until the closing of their sales with simplicity and security.
Who are your competitors? Who is the biggest threat?
Luxury Blockchain Smart contracts
World’s first luxury platform
Headquarters in Singapore.
Luxury Blockchain Payments
28,000 Clients Worldwide
Headquarters in New York.
Influencers, Brands, Agency
153,000 Members paying
$149 to $299 monthly.
Our competitors have a strong relationship network with brands, agencies, influencers, brokers and customers. This can facilitate and give them an advantage for launching a new competitive product on the market.
How will you make money?
Our main service will be the coverage of world class events to create advertising content on social media, being a VIP service, limited to 360 campaigns per year. We will make money from our blockchain platform for luxury goods transactions, through subscription plans, service fees and transaction fees.
Private Club Membership at Malibu: Campaigns & Events
All-in-One Blockchain & Marketing: Subscriptions + Service Fees + Transactions Fees
Problem/Solution Fit: 7 Clients | Revenue: $210,000
Product/Market Fit: 36 Clients | Revenue: $1,080,000
Scale: 360 Clients | Revenue: $10,800,000
SMART CITIES: $12M
DREAM KIDS: $17M
What are the biggest risks? If you fail, what would be the reason? What has to go right for you to succeed?
As an advertising agency, we promise to promote our customers' products and services until they have a closed sale, by contracting our annual membership plan. In addition there is our blockchain marketing platform that can face barriers to entry and bureaucracy of public agencies such as notaries, federal revenue, etc. These main factors may affect our credibility with the market.
To avoid these problems, we will strive to build an excellent team of digital advertising, events, customer relations and sales, including the support of luxury brokers who will be able to manage smartcontracts, documents and payments registered with blockchain technology and updated in notaries or agencies like the IRS.
What do you need the most help with?
As a founder living in Brazil, I need help to move to Los Angeles, incorporate the legal entity, meetings with partners and clients.
What would you do with the money you raise?
Our startup has got the initial acceptance into FasterCapital's technical cofounder program and has secured $200,000 which is half of its funding. Let's use the money as follows:
$150.000 Product Development
$30.000 Marketing & Sales
$70.000 Operating Expenses
$150.000 Reserves (PD)