Exceptional Magazine : 2011 Exceptional Magazine
Exceptional 2011 Zhenya Group of Companies / Young category winner Star alert In 2005, Tsvetnenko pioneered an SMS Gateway technology to deliver horoscopes, weather alerts, cheap petrol alerts, news, games, music and text alerts to mobile phones. He also began spending $200 a month advertising these text alert services on Google AdWords from his home offce. He had no working capital and no external investments. Within 18 months, the company had an average of 147,000 customers signing up for text message services per month, and monthly retail revenue exceeding $4 million. In fve years, using his own technology and a low cost business model, the Zhenya Group of Companies has grown into a $30 million business, with EBIT of nearly $10 million. "I am proud that I started the business on my own and single-handedly grew it from an advertising spend of $200 per month to $2 million a month in 18 months," Tsvetnenko says. "By mid-2007, I had become Google's largest advertiser worldwide." In 2008, Tsvetnenko moved to control advertising costs by negotiating away from the typical "cost per click" internet advertising model to a "cost per acquisition" system. The key to this phenomenal success lies in Tsvetnenko's business model. There is very little outlay, because the end customer pays via their telecommunications provider, which bills for use of the service, so all billing is handled by the carrier. Of the monthly subscription fee, the aggregator takes less than 10%, the telcommunications carrier takes 50% and the balance goes to the Zhenya Group of Companies. In addition, Tsvetnenko's competitors use a third party customer management system, which greatly increases the "My thirst for knowledge developed my entrepreneurial spirit. The biggest challenge for next year is choosing the right project to invest in." Zhenya Tsvetnenko, Zhenya Group of Companies The Entrepreneur Of The Ye a r National judging panel remarked on the extraordinary growth of Tsvetnenko's business, commenting that it is relatively easy to have one product that works, but to have multiple products with scalability and the ability to continue developing new products and move into new markets is remarkable. Zhenya Tsvetnenko founded the frst commercial enterprise to deliver and bill a text alert service to a user's mobile phone on a mass scale. Today, the Zhenya Group of Companies is a thriving global business. Meet the 2010 Entrepreneur Of The Ye a r Young category winner. lag time between development and the consumers getting access to a service. In contrast, Tsvetnenko's SMS Gateway technology service deployment is very rapid, reducing the wait time from two weeks to only 30 minutes. Today, Tsvetnenko's business operations span Australia, New Zealand, Canada, the United States and the United Kingdom. Over the next two years, Tsvetnenko plans to expand into South America, Russia, Europe and Mexico.
2012 Exceptional Magazine