1. More data on this topic available from:: How to Explode Your Subscription Revenue Through Email Testing and Strategic Pricing Julie Lohmeier Vice President, Marketing Zacks.com Monday, May 7, 2007

2. More data on this topic available from:: 2 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Outline  3 Methods of Exploding Subscription Revenue  Results  Lessons Learned

3. More data on this topic available from:: 3 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. 3 Methods of Exploding Subscription Revenue  Repackage existing content  Launch new content or services  Offer paid “samples”

4. More data on this topic available from:: 4 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. 3 Methods of Exploding Subscription Revenue  Repackage existing content  Launch new content or services  Offer paid “samples”

5. More data on this topic available from:: 5 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Repackaging Existing Content  Overview  Often convert free content to paid  Difficult at first, user resistance  Requires low prices  Example: Zacks Premium

6. More data on this topic available from:: 6 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Repackaging Existing Content  Zacks Premium  Zacks Rank Rank Stocks from #1(Strong Buy) to #5 (Strong Sell) “Earnings estimate revisions are the most powerful force impacting stock prices.” 31.9% Average Annual Return $10,000 in 1988 now worth $1.7 Million Partially free previously Now only available through Zacks Premium or Zacks Elite  Additional exclusive research  Incredible value

7. More data on this topic available from:: 7 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Repackaging Existing Content  Zacks Process  Free Preview Period – 14 days  Introductory Rate – 1 month  Occasional discounts post launch  Email to house list for “heavy lifting”  Integrate on web site  90-Day Refund Policy

8. More data on this topic available from:: 8 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Repackaging Existing Content

9. More data on this topic available from:: 9 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Repackaging Existing Content  Pricing Strategy  Preview Period: $99 for 13 months  Charter Membership: $99 for 12 months  Full price: $199  Discount: $149  Monthly option: $24.95

10. More data on this topic available from:: 10 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Repackaging Existing Content

11. More data on this topic available from:: 11 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Repackaging Existing Content  Tests – Subject line 2/14/07  90 Days to More Profits – or Your Money Back  How to Beat the Market with a Premium Portfolio

12. More data on this topic available from:: 12 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Repackaging Existing Content  Tests – Subject line 2/14/07  90 Days to More Profits – or Your Money Back  Winner: 17% increase on Open rate

13. More data on this topic available from:: 13 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Repackaging Existing Content  Tests – Postcard 3/13/07  Long email to buy page  Postcard to long page to buy page  (Long email = Long page)

14. More data on this topic available from:: 14 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Repackaging Existing Content

15. More data on this topic available from:: 15 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Repackaging Existing Content

16. More data on this topic available from:: 16 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Repackaging Existing Content  Tests – Postcard 3/13/07  Postcard to long page to buy page  Winner: 4x more orders

17. More data on this topic available from:: 17 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Repackaging Existing Content  Creative  Winning postcard 3/13/07 Subject = Limited Time: Save Now on Zacks Premium  New postcard to new landing page 4/17/07 Subject = Special Savings for Zacks.com Users – Expires Friday

18. More data on this topic available from:: 18 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Repackaging Existing Content

19. More data on this topic available from:: 19 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Repackaging Existing Content

20. More data on this topic available from:: 20 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Repackaging Existing Content

21. More data on this topic available from:: 21 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Repackaging Existing Content

22. More data on this topic available from:: 22 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Repackaging Existing Content  Creative  New postcard to new landing page 4/17/07  Winner: 36% more opens, 28% more clicks, 136% more sales  Landing page became new landing page

23. More data on this topic available from:: 23 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Repackaging Existing Content  Future Tests  $50 off  $150 off  25% savings  Price = $149 on all

24. More data on this topic available from:: 24 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. 3 Methods of Exploding Subscription Revenue  Repackage existing content  Launch new content or services  Offer paid “samples”

25. More data on this topic available from:: 25 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Launch New Content or Services  Overview  Easier user acceptance  Higher prices typically  Counter-Intuitive: Customers will pay more for less if it’s EASY and PROVEN to work  Example: Trading Services – Surprise Trader, Breakout Trader, Options Trader

26. More data on this topic available from:: 26 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Launch New Content or Services  Trading Services  Easy: What to buy, when to buy it, and when to sell  Proven: Back-tested results = 55.8% per year on Breakout Trader  Real results: Surprise Trader – beats S7P 500 by nearly 3x, one stock up 17% in 13 days  Zacks Rank foundation

27. More data on this topic available from:: 27 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Launch New Content or Services  Zacks Process  Launch  “Updates” at week 1 or 2  Last week countdown on introductory price  Last day for charter price – 30 days  Email + web site links and placements  90-Day Refund Policy + Guarantee

28. More data on this topic available from:: 28 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Launch New Content or Services

29. More data on this topic available from:: 29 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Launch New Content or Services  Pricing  Launch price: $995  Full price: $1495  Occasional discount offers at $995 – limited time  Once proven performance and accepted,6-12 months, raise to $2995

30. More data on this topic available from:: 30 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Launch New Content or Services  Tests  Surprise Trader – Subject 10/10/06  Zacks Best Kept Secret: Available Now  Zacks Secret to Profits this Earnings Season

31. More data on this topic available from:: 31 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Launch New Content or Services  Tests  Surprise Trader – Subject 10/10/06  Zacks Best Kept Secret: Available Now  Winner: 13% higher net CTR

32. More data on this topic available from:: 32 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Launch New Content or Services  Tests  Surprise Trader – Postcard 3/20/07  Long Page to Buy Page  Postcard to Long Page to Buy Page

33. More data on this topic available from:: 33 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Launch New Content or Services

34. More data on this topic available from:: 34 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Launch New Content or Services

35. More data on this topic available from:: 35 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Launch New Content or Services  Tests  Surprise Trader – Postcard 3/20/07  Postcard to Long Page to Buy Page  Winner: 166% more sales

36. More data on this topic available from:: 36 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Launch New Content or Services  Tests  Breakout Trader – Copy 2/21/07  Resend  Introduction to previous email

37. More data on this topic available from:: 37 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Launch New Content or Services

38. More data on this topic available from:: 38 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Launch New Content or Services

39. More data on this topic available from:: 39 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Launch New Content or Services  Tests  Breakout Trader – Copy 2/21/07  Introduction to previous email  Winner: 4:1 more in sales

40. More data on this topic available from:: 40 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Launch New Content or Services  Tests  Breakout Trader – Subject 4/3/07  From a Lowly Zacks Sell or Hold to an Emphatic Zacks Buy  Outsmart Wall Street with New Zacks Rank Breakout Trader

41. More data on this topic available from:: 41 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Launch New Content or Services  Tests  Breakout Trader – Subject 4/3/07  From a Lowly Zacks Sell or Hold to an Emphatic Zacks Buy  Winner: 5:1 better on sales, 20% higher net CTR

42. More data on this topic available from:: 42 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. 3 Methods of Exploding Subscription Revenue  Repackage existing content  Launch new content or services  Offer paid “samples”

43. More data on this topic available from:: 43 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Offer Paid “Samples”  Overview  Low-cost product*  Loyalty reward, value add, or enhancement to more expensive products  First purchase  Relatively short-lived  Timely offerings (eg., Top Stocks for 2007)  Special Opportunities (eg., Stocks to Double)  Hot industries (eg., biotech, energy, etc.)

44. More data on this topic available from:: 44 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Offer Paid “Samples”  Zacks Process  Pre-launch promotion  Launch  Update Performance “Teasers”  One month  Regularly after launch, about 6 months  Email + integrated on web site  No Refund, Limited Guarantee

45. More data on this topic available from:: 45 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Offer Paid “Samples”  Price  Encourage first time sale  Don’t cheapen product  Top 10: $299, Stocks to Double: $99  Special discounts and permissions $100 off for paid customers (Top 10) Free enhancement for Zacks Elite (S2D)

46. More data on this topic available from:: 46 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Offer Paid “Samples”  Tests  Subject – Top 10 (12/9)  What are Zacks Top 10 Stocks for 2007?  Introducing Zacks top 10 Stocks for 2007

47. More data on this topic available from:: 47 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Offer Paid “Samples”  Tests  Subject – Top 10 (12/9)  Introducing Zacks top 10 Stocks for 2007  Winner: 22% higher net CTR

48. More data on this topic available from:: 48 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Offer Paid “Samples”  Tests  Subject – Stocks to Double (4/24/07)  Introducing Zacks New 6 Stocks to Double  New Zacks Report: Stocks to Double

49. More data on this topic available from:: 49 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Offer Paid “Samples”  Tests  Subject – Stocks to Double (4/24/07)  New Zacks Report: Stocks to Double  Winner: 8% higher open, 22% better net CTR, 75% more orders

50. More data on this topic available from:: 50 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Offer Paid “Samples”  Tests  Subject – Stocks to Double (5/1/07)  Updated New Zacks Report, Stocks to Double  Breaking News on Zacks Report, Stocks to Double

51. More data on this topic available from:: 51 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Offer Paid “Samples”

52. More data on this topic available from:: 52 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Offer Paid “Samples”  Tests  Subject – Stocks to Double (5/1/07)  Breaking News on Zacks Report, Stocks to Double  Winner: 31% better net CTR, 25% more orders

53. More data on this topic available from:: 53 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Results  Quadrupled subscription business in 12 months  Launched 6 products  Improved process as we went  Did most of it with 3 staff, $0 external marketing  Grew department to 6 employees

54. More data on this topic available from:: 54 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Lessons Learned  Don’t be afraid to charge high prices  Guarantees and refund policies close sales  Postcards work  Use Zacks name  Test!  When a price is over, it’s over.  Copy is key.  Leverage what you have.  Don’t wait ‘til it’s perfect, get out there and learn as you go.

55. More data on this topic available from:: 55 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you. Credit/Thank You Julie Lohmeier Zacks.com jlohmeier@zacks.com