Pagalguy Created by Allwin Angel

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1. Introduction - PaGaLGuY

PaGaLGuY was created by Allwin Angel, an MBA aspirant, in 2002. He had initially used Sify forum and Yahoo Groups to discuss MBA related topics, but these portals barraged users with loads of unstructured information. His primary aim with PaGaLGuY was to create a highly usable online forum for aspirants like him. PaGaLGuY’s initial publicity was carried out by word of mouth and viral marketing on Sify forums. As a result, website traffic grew from 1.8 GB per month to 1 GB per day from April 2003 to February 2004. He initially invested personal savings to purchase high capacity servers and cover maintenance costs. Subsequently, leveraging high web traffic, online advertising deals were struck with B-schools, coaching institutes and youth brands. The site also became the most preferred medium for publicizing major business school events.

The following report analyses the business model of PaGaLGuY with specific focus on the product offerings which has helped it in creating a niche for itself. This is done by analyzing issues faced in the creation and market adoption of the products. We then discuss a few recommendations which can help PaGaLGuY increase outreach, augment revenue generation sources as well as expand the market by creating additional offerings to create value for its customers.

1. Business Model

2.1 Product Offerings and other Business Parameters

Following table summarizes the elements of PaGaLGuY’s business model, wherein its primary offering is online forum for discussion for MBA aspirants. The forums host a variety of topics and are moderated by volunteers chosen from amongst the users. It also has created a gamut of other products e.g. B-school rankings with relevant criteria and others listed below. Primary revenue source is online banner space rented out to B-schools and coaching institutes while costs go into website maintenance, marketing and salary expenses.