The Quiet Revolution After decades of being forced farther and farther out of metro areas, it's time to "take back some ground“ AMA E-Field Program 2006

Our Current Trend 5/17/2019

The good news is that our hobby is growing! Our research data tells us that 69% of our membership considers acquiring and maintaining suitable flying sites as their #1 issue. We have confirmed from numerous sources that the hobby is healthy and growing, yet the AMA membership is declining 5/17/2019

E-flyer Opportunity 5/17/2019

E-Field Program The E-Field Program contains two critical components: E-field three ring binder to be made available to members/clubs to secure flying sites Identify field requirements for different aircraft How to deal with bureaucracy Designing/funding/running the site Discounted AMA dues 5/17/2019

E- Field 3 Ring binder This is a turn-key sales aid to assist the E-flyer to acquire a suitable flying site Key components of binder: Searching for Your Site Dealing With the Site Owner Designing Your Site Funding the Site Running the Site Supplemental sheets will provide diagrams and resource lists. Included brief 5-minute video All pointed towards the “sales effort” to park boards, park superintendents, etc. to establish a place to fly electric airplanes. 5/17/2019

Why discount the AMA dues? E-flyers are very different Initial cost of equipment ½ of nitro flyers Learning curve shorter Fewer Flying site restrictions MD Committee anticipates that the target market will have a high turn-over rate The strategy is to get these flyers “hooked” and grow with the hobby 5/17/2019

So, how much are we going to charge the new E-flyer for dues? Based upon a targeted gross margin of our existing dues and the fact that the barrier to entry is approximately ½, $29.95/year E-flyer $58/year full AMA membership (no change) 5/17/2019

But what about current AMA members who are E-flyers? Significant differences between full AMA membership and E-flyer membership Insurance Magazine Participation in AMA sanctioned events 5/17/2019

Insurance differences Full $58 membership $2.5 M individual liability coverage$25,000 medical coverage$1,000 Fire, Theft & Vandalism coverage E-flyer $29.95 membership $500,000 individual liability coverage No medical coverage No Fire, Theft & Vandalism coverage 5/17/2019

Magazine differences Full $58 membership E-flyer $29.95 membership Model Aviation magazine E-flyer $29.95 membership New E-focused AMA mag. Melding of MA e-type articles and E-flight articles from existing publications 5/17/2019

Why have sanctioning differences? MD Committee feels new E-flyer will have little interest in participating in sanctioned events MD Committee anticipates this will limit the number of existing AMA members paying $58/yr. shifting to the $29.95 rate We anticipate about 5,000 current AMA members to shift to the E-flyer category 5/17/2019

So, what are the projected numbers? The following represents the revenue potential of this program using a 30% growth rate: Year Dues paying park flyers Gross Rev Cannibalized Rev Net Revenue 1 25,000 $750,000 5,000=$140,000 $610,000 2 26,000 $780,000 $0.00 3 33,800 $1,014,000 Total $2,404,000 5/17/2019

This is risky...we might fragment AMA! WE need to envision a different AMA. Two strong groups of modelers: Electric only flyers General flyers Detractors will say this is a house divided Supporters will say this program is a way to get new members that we otherwise would never have 5/17/2019

E-fliers are a new breed This program recognizes E-flyers are a unique group with very different needs Cost is ½ to get into the hobby Does not require long period of instruction to learn to fly Noise issue is not a problem Repairs are usually quick and easy to do at the field 5/17/2019

Critical Time Line Feb-creative for ad Mar-insert ad into magazines EC approval-Jan Feb-creative for ad Mar-insert ad into magazines April-Westchester insurance policy reflecting new coverage May-  RCX show in CA launch on 20-21 5/17/2019