1. 1 Revenue Team January 22, 2004

2. 2 Contents Introduction Revenue Goals The Cross-functional Team Achieving Stratfor’s Revenue Goals –Revenue Goals –Revenue History –1stQ Revenue Targets –Product – Pricing –Subscription Sales Strategy and Tactics –Sales Organization Next Steps

3. 3 Introduction

4. 4 Introduction to the Cross Functional Revenue Team 1)Change and affects of change 2)Why we are doing this 3)Expectations of the team

5. 5 Revenue Goals

6. 6 2004 Revenue Goals Company Revenue Goals $4 million in subscription revenue in 2004 $3 million in SIA revenue in 2004 Subscription Sales Revenue Goals 1) $3 million in subscription revenue 2) $1 million in enterprise revenue Business Development Revenue Goals 1) $3 million in SIA revenue

7. 7 Subscription Revenue History – 2002 vs 2003 Chart is combined individual and group subscription revenue

8. 8 Subscription Revenue Goal 2004 Chart is combined individual and group subscription revenue

9. 9 Revenue Assumptions We renew 80% of 2003 recurring revenue… that’s $2 million in renewal revenue for 2004. We launch two affinity products in 2004 that generate a minimum of $300,000 in subscription revenue. Up selling continues with FIB to basic, basic to premium, two-year renewals Cancellation rate maintains a 20% or less average Volume/revenue of 3rd party relationships Search engine optimization is executed on time/on target PR initiatives with print publications drive subscriptions Execution of direct response campaigns Execution of viral marketing campaigns Quantity of inbound leads and subscriptions increases with lead generation campaigns, PR exposure, 3 rd party relationships

10. 10 Revenue Targets – 1Q Quarter 2004

11. 11 Renewal Rates 2003 $449$349$249$99$49CancelBCC/BE 44936%4%13%9%1%20%16% 3491%47%5%9%1%15%23% 2491% 46%6%1%21%26% 991% 5%56%2%18%21% 491%0%1% 54%6%21% Renewal rates by price and percentage – July 2003 through October 2003

12. 12 Expiring Subscriptions in 2004

13. 13 Cross-Functional Teams

14. 14 Why This Approach? Aligning company goals and objectives with department and individual activities Execute around company priorities Cross-functional communication Cross-pollination of understanding company, department, and staff operations Manage staff more effectively Build into daily activity more efficiency, effectiveness and productivity Streamline workload and reduce the common waste of time, money, people, and material resources Identify bottlenecks, constraints, capability gaps and ways to redirect the current approach Gets the job done on time, on target, on budget

15. 15 Immediate Impact of Cross-Functional Approach 1)Each department has internal, cross-departmental, and “tactical” related activities to accomplish each day. Without a coordinated plan, the company overall, its departments, and the personnel within them, do not know the following:

16. 16 Immediate Impact of Cross-Functional Approach 2) A) Which tasks are of a high priority and which are to be accomplished first; B) Due dates and dependencies of tasks that another department or individual is waiting to receive before beginning their task; and C) Whether or not the task will be accomplished at all, thereby jeopardizing their tasks being accomplished successfully.

17. 17 Immediate Impact of Cross-Functional Approach No Alignment vs Alignment 3) A consolidated operations plan allows for both tactical and contingency planning, and for “just-in-time” allocation of resources — time, money, people, and materials — and the ability to align functional areas with company goals and objectives.

18. 18 Overview of Planning Process

19. 19 Characteristics of Cross-Functional Teams 1.Have a mission, purpose or goal to achieve 2.Have a defined structure 3.Have members who understand their role, their responsibilities, and the team’s expectations of them. 4.Have open communication, particularly for planning and problem solving 5.Try to improve themselves, i.e., team and individual skills and process 6.Are flexible, not rigid, particularly with roles and opportunities as they are presented 7.Use pre-defined process with contingency plans 8.Train and practice together 9.Have consequences for their actions, either positive or negative, for both the team or the individual 10.Have a coach / team leader to keep the priorities on track

20. 20 The Cross-Functional Team 1.Account Management – Anna 2.Analysis – Rodger/Mike/Bart (TBD) 3.Business Development - Jeff 4.Customer Service - Lee 5.Finance - TBD 6.HR - Dorothy 7.IT/MIS – Ron/Mike/Will (TBD) 8.Marketing – Tom/TBD 9.Sales – Tom/TBD 10.PR - Meredith 11.Production - Marla

21. 21 Subscription Sales Objectives and Tactics

22. 22 How People Find Stratfor eMarketer, an online Internet research group, reports various ways that people find websites: 1)78% Search Engines 2)62% Other Pages 3)53% Friends, Relatives 4)44% Print Media 5)6% Usenet 6)6% Email 7)2% Television The sales plan is focused on capitalizing on these access points.

23. 23 Product Pricing Direct Sales - Products Group subscriptions of 5+ 2 nd party redistribution 3 rd party redistribution Up sell to SIA Pricing Group pricing Enterprise-wide license Revenue share pricing Unlimited distribution pricing Account Management Individual subscribers Basic/Premium/Affinity products New subscribers Renewal subscribers Pricing $79 basic - promotion $99 basic - standard $249 premium – promotion $249 premium – down sell $349 premium – down sell $449 premium – standard $100 - $249 for 2 nd year up sell

24. 24 Subscription Sales Goals/Strategies $3 million in subscription revenue 1.Renew $X /X% in renewal subscription revenue 2.Increase existing customer base revenue by X% or $X monthly 3.Increase new subscription revenue from $X in 2003 to $X in 2004 4.Account Management will shift from an “inbound” sales team to an “outbound” sales team and employ more cold-calling tactics 5.Reduce sales cycle and company revenue cycle to accelerate revenue collection and recognition in 2004

25. 25 Enterprise Sales Goals/Strategies $1 million in enterprise revenue 1.Renew 80% of existing enterprise renewal base revenue 2.Increase enterprise renewal revenue through up sell programs 3.Employ a 2nd/3rd party sales model to leverage an existing or new client’s customer base 4.Reduce sales cycle for enterprise sales to accelerate revenue collection and recognition in 2004 5.Lead generation campaigns that include list acquisition and implementation of PR campaigns (print placements) 6.Additional sales hires (2) for enterprise sales 7.Go global with sales efforts

26. 26 Quarterly Sales Goals 1 st Quarter2 nd Quarter Generating Revenue  Enterprise sales  Begin 3rd Party relationships  Renewal subscriptions  Email campaigns for direct response  Email campaigns for viral marketing  Sales site update  Corporate site update  Basic and premium site update  Begin PR initiatives Sales & Marketing Operations  Reduce sales cycle  Sales hire – enterprise sales Generating Revenue  Continuation of previous quarter’s objectives  New product release – affinity site or email product  Expand PR initiatives to overseas publications Sales & Marketing Operations  Reduce company revenue cycle  Sales hire – enterprise sales  Sales hire – account manager

27. 27 Quarterly Sales Goals 3rd Quarter4th Quarter Generating Revenue  Continuation of previous quarter’s objectives  More aggressive direct response campaigns Sales & Marketing Operations  Sales hire – enterprise sales  Sales hire – account manager Generating Revenue  Continuation of previous quarter’s objectives Sales & Marketing Operations  Sales hire – account manager

28. 28 Quarterly Sales Goals ObjectivesQ1Q2Q3Q4 3 rd Party relationships program Enterprise sales – cold calling and cross-selling campaigns Renewal process tightened Email campaigns to existing base (including 3 rd Party) Viral marketing program Sales site updated with demonstrations Corporate site information updated Basic site updated – Up sell efforts Premium site updated – Cross sell efforts PR relationship initiatives Reduce sales cycle – Tighten sales with metrics Reduce revenue cycle – Tighten company revenue operations Direct response campaigns New product release – email / affinity site Personnel Hires Sales Hire11 Acct Mgmt Hire111 Marketing111

29. 29 Inputs/Needs for Meeting Revenue Goal

30. 30 Next Steps

31. 31 Revenue Team – Next Steps Next steps, initial suggestions: 1)Team will meet twice weekly for the first couple of weeks 2)Review of subscription sales and SIA goals, strategies and tactics 3)Identify immediate needs and current tasks on deck 4)Build a tactical plan for to achieve the revenue strategies and tactics 5)Debrief/discussion/training on how the cross-functional team will work going forward

32. 32