INTERNET ADVERTISING

2003 GOAL Test and Implement Member Acquisition via the Internet at a CPS Comparable to TV.

Introduction and Overview Types of advertising formats and strategies Leads and Conversions

INTERNET ADVERTISING FORMATS Pop-ups Pop-up ads show up over or under web pages when accessing the internet Mock-up of Pop Up Ad

INTERNET ADVERTISING FORMATS Banner Ads including Skyscrapers; Anchors; etc. Active Banners

INTERNET ADVERTISING FORMATS Banner Ads ready to test Banners with multiple products

INTERNET ADVERTISING FORMATS Creative

INTERNET ADVERTISING FORMATS Search Engines Based on cost per click with link to a mirrored exclusive SMC website Top Ranking Custom Description

INTERNET ADVERTISING FORMATS Infomercial Websites Website address advertised on infomercial Current Websites: Print Websites Website address advertised on Card Decks, Display ads, Classified ads Current Websites:

LEADS AND CONVERSIONS Landing Pages vs. Websites

LEADS AND CONVERSIONS SMC Websites Arrived at SMC site by clicking on an , banner ad, anchor ad, or clicking on a search engine listing Allows potential member to look through various informational pages before requesting a free information packet Informational Pages

LEADS AND CONVERSIONS Landing Pages Arrived at SMC landing page by clicking on an , banner ad, anchor ad, or clicking on a search engine listing Potential member can read SMC information and request free information packet on the web page

LEADS AND CONVERSIONS Qualifying Leads Why do we do it? In the beginning, any lead was a good lead. Or so we thought. The Internet was a great source of cheap leads. Really cheap. Free, sometimes. What a great impact on our CPI! We joyfully sent these leads off to AZ. Only, these leads didn’t convert. In fact, some of them were so bad they pretty much tarred all Internet leads with the same bad-smelling brush as far as the phone reps were concerned. So, we had to make our Internet leads jump through a few qualifying hoops, eliminate the compulsive looky-loo clickers and focus on folks who were actually interested and willing to spend money to get started. Thus, the Qualifying Questions…

LEADS AND CONVERSIONS How is a lead qualified? Leads are qualified by asking the right questions What is the best time for an SMC representative to call you to explain how you can get started for as little as $25.00?: I currently have (check all that apply) Visa Savings Account Master Card Checking Account Discover Card None of the Above American Express SMC recommends that you own a credit card and/or checking account if you want to have a home business. Question #1 Question #2

LEADS AND CONVERSIONS Lead Management Lead Requests Free Info Fills out form on landing page or on SMC website Day 1 Day 2 Captured names sent to SMC in batch file, assigned an inquiry no. and posted Into Vax Day 3 A-Mail Sent Day 10 Az. receives file With inquiry names To outbound Current Process of Internet Leads

LEADS AND CONVERSIONS Previous Online Conversion Method Join Online Site Member Joins Day 1 Day 2 Media Dept manually creates inquiry Day 3 Caging Dept generates membership Day 10 Receive Business Kit

LEADS AND CONVERSIONS Upcoming Online Conversion Method Join Online Sites Member Joins Day 1 Instant credit card approval Same Day Membership & thank you generated Automatically Same Day Mem. No ed SMC member can set up password And begin placing orders Day 7 Receive Business Kit Day 2 sent to SMC member To notify them That their business kit has been sent

STRATEGY OVERVIEW Our Historical and Current Strategy The Testing Roadmap

Our Historical and Current Strategy 2002 Performance Media Spent: $ Cost Per Lead: $4.00 Membership Conversion:10% Cost Per Sale: $ Year to Date Media Spent: $ Cost Per Lead: $4.00 Membership Conversion:10% Cost Per Sale: $39.14 NOBOSS.COM

Our Historical and Current Strategy 2002 Performance Media Spent: $ Cost Per Lead: $2.44 Membership Conversion:7% Cost Per Sale: $ Year to Date Media Spent: $ Cost Per Lead: $2.50 Membership Conversion:5% Cost Per Sale: $46.11 INFOMERCIALINDEX.COM

Our Historical and Current Strategy 2002 Performance Media Spent: $ Cost Per Lead: $2.01 Membership Conversion:12% Cost Per Sale: $ Year to Date Media Spent: $ Cost Per Lead: $2.47 Membership Conversion:9% Cost Per Sale: $27.72 BUSOP1.COM

Our Historical and Current Strategy 2002 Performance Media Spent: $172, Cost Per Lead: $7.50 Membership Conversion: 6.03% Cost Per Sale: $ Year to Date Media Spent: $ Cost Per Lead: $7.50 Membership Conversion:6.18% Cost Per Sale: $ Yahoo s Users receive s in their Yahoo! Mail inbox

THE TESTING ROADMAP

Smallbusinessopportunity.com Website designed for small businesses 2003 Projections Media Spending: $ 3, test 1 Mo. Home page anchor banner Est. Cost Per Lead: $3.50-$7.00 Est. Leads: p/mo. Launch Date: May 1st

THE TESTING ROAD MAP Ampere Media Opt-in Lead Generation Campaign 2003 Projections Media Spending: $ 2, Spending is determined by SMC’s requested lead counts. Cost Per Lead: $1.00 Est. Leads: p/wk Launch Date: June 1st Ampere Media

THE TESTING ROAD MAP Retesting Yahoo Campaign 2003 Projections Media Spending: $ 9, p/wk 1.9 million delivered s per week at $5.00 c.p.m Est. Cost Per Lead: $7.00 Est. Leads:1373 p/wk Launch Date: TBA Yahoo s Users receive s in their Yahoo! Mail inbox

THE TESTING ROAD MAP Lead Management Process Step 2: User receives Step 3: User is sent to landing pg. Which generates an A-mail application the next day Step : 1 User clicks on Smc in their inbox

THE TESTING ROAD MAP Overture Search Performance Optimizes Search Engine Listings on Bidding System 2003 Projections Media Spending: $ 12, test 450 key terms on Overture’s search engines estimated $1.00 cost per click Est. Cost Per Lead:TBA Est. Leads: TBA Launch Date: April 11th Value Click s

THE TESTING ROAD MAP Overture Preliminary Results Campaign Launched on April 11 th Stats as of April 21st Media Spent: $ Click Rate: 20% Leads: 620 Est. Cost per Lead: $3.04

THE TESTING ROAD MAP Lead Management Process Step 1: User clicks on search result Step 2: User is sent to SMC site. Which generates an A-mail application the next day

THE TESTING ROAD MAP Career Builders Resource center listing on employment website 2003 Projections Media Spending: $ 9, test 1 Mo. top resource center listing, est clicks per day Est. Cost Per Lead: TBA Est. Leads: TBA Launch Date: May 5th

THE TESTING ROAD MAP Lead Management Process Step 1: User clicks on listing Step 2: User is sent to SMC site. Which generates an A-mail application the next day

THE TESTING ROAD MAP Value Click Campaign 2003 Projections Media Spending: $ 5, million delivered s over 3 weeks at $2.00 c.p.m Est. Cost Per Lead: $3.00 Est. Leads:550+ p/wk Launch Date: May 13th Value Click

THE TESTING ROAD MAP Lead Management Process Step 1: User clicks on Step 2: User is sent to SMC site. Which generates an A-mail application the next day

THE TESTING ROAD MAP Affiliate Fuel Campaign 2003 Projections Media Spending: $ 3, Spending is determined by SMC’s requested lead counts. s will be delivered in order to meet lead counts. Cost Per Lead: $3.00 Leads:1000 p/wk Launch Date: May 15th Affiliate Fuel

THE TESTING ROAD MAP Lead Management Process Step 2: User receives Step 3: User is sent to landing pg. Which generates an A-mail application the next day Step : 1 User clicks on Smc in their inbox

THE TESTING ROAD MAP Euniverse Banner and Campaign Media Spending: TBA Cost Per Lead: $2.50 Cost Per Membership: $50.00 Leads:1000 p/wk Launch Date: TBA

THE TESTING ROAD MAP Lead Management Process Step 2: User receives Step 3: User is sent to landing pg. Which generates an A-mail application the next day Step : 1 User clicks on Smc in their inbox

RESEARCH AND DEVELOPMENT Online Advertising Opportunities

RESEARCH AND DEVELOPMENT Google Search results and advertising appear on AOL and other partner sites Premium Placement Located at top of search page Advertiser selects key terms for ad CPM placement Adwords Select Side bar location Advertiser selects key terms for ad CPC placement CPM Placement CPC Placement