1. Small Businesses Going Online November 30, 2007 Allison Mnookin Vice President, Small Business Division

2. Who We Are… Intuit Company Information  Intuit has 26M consumer users  Founded in 1983  FY 2006 revenue of $2.3 billion … more than half from small businesses The leading provider of small business financial solutions… and now going beyond finance as well… 7 million Small Business users

3. Intuit’s Small Business Mission Empowering Individuals in Small Business to Achieve their dreams

4. Source: Intuit’s Small & Simple Quant Survey 2006, Main Street Quant Survey 2006, Mid Market Quant Survey 2006 Acquiring Customers is #1 Pain 68% New-to-the-world and 75% Established Firms Say Finding Customers Is Biggest Limiting Factor to Growth

5. $110B Annual Spend on Marketing $110B Annual Spend on Marketing ~60% spent marketing $ in the last 12 months Sources: Intuit Quantitative research 2006. 2005 City Business Journal Study of U.S. SMB Spending. Small Businesses Spend on Marketing … Sources: Marketing spending from City Business Journal Network, 2005. Percent of small business from Intuit Quantitative research 2006.

6. … But The Web is Way Behind Sources: Intuit Quantitative research 2006, Kelsey Group. Percent Marketed Online in the Last 12 Months = 22% Percent of Marketing Budget Online <5%

7. Personal Business 25% 52% 63% Main StreetMid-market Far Less than Half of Small Businesses Have a Web Site 22M3.2M0.6M Source: Intuit’s Small & Simple Quant Survey 2006, Main Street Quant Survey 2006, Mid Market Quant Survey 2006 +95% of customers say they want a site

8. Why Do Small Business Owners Create Websites? Allow customers to get information about our products & services at any hour Build awareness of our business Establish ourselves as a legitimate business Show customers our products over the Internet Increase number of customers Increase sales Extend our customer base beyond our local geographic area Stand-out from our competitors Customers kept asking for our website address TO DRIVE GROWTH Source: Intuit’s Web Site Net Promoter Research, June 2007 (n=500)

9. But It Isn’t That Easy! “I’m not interested in advertising on the world wide web and reaching a broad audience when the target we’re after is so small.” “I don’t really know what’s involved in getting a site up and going. I’d need to get that figured out, I would find someone to do it for me.” “I don’t know the right term, but you know, I want everyone to be able to find the website no matter what” Sources: Intuit Qualitative Research “Having a webstore is like having a 2 nd store but it’s in a language I don’t speak”

10. Now… How do I get Traffic? Handed out business cards Sent emails Sent postcards, letters or brochures to customers Added metatags & specific keywords on my website to make sure I show up at the top of pages when people search Bought online pay per click keyword ads Bought Online banners ads Bought online local listing placement like Internet yellow pages, CitySearch or Yahoo! Local Other Have not taken any steps Source: Intuit’s Web Site Net Promoter Research, June 2007 (n=500)

11. But What Was Most Effective? Added metatags & specific keywords on my website to make sure I show up at the top of pages when people search Handed out business cards Sent emails Sent postcards, letters or brochures to customers Other Bought online pay per click keyword ads Bought online local listing placement like Internet yellow pages, CitySearch or Yahoo! Local Bought Online banners ads Source: Intuit’s Web Site Net Promoter Research, June 2007 (n=500)

12. Which Tactics Are Likely to Yield Results Beyond Expectations? Keyword Search a (n=76) Direct Marketing b (n=104) Both c (n=163) Much higher than expected Somewhat higher About what expected Somewhat less Much less Amount Business Has Increased Source: Intuit’s Web Site Net Promoter Research, June 2007 (n=500)

13. Dilbert’s Understanding

17. 3 Lessons Intuit’s learned in winning over Small Businesses

18. 1. Solutions for Experts don’t Win QuickBooks was the first solution with no debits and credits

19. 2. Provide Help… then let me do it myself Net Promoter scores of new users on financial software improve 40% when someone helps with set-up

20. 3. Solve integrated problems well 1 Million Small businesses use Intuit Payroll …more than Paychex & ADP combined

21. Intuit helping small businesses get online

22. JumpUp Small Business Community

23. WebListings

25. Empowering individuals in small businesses to achieve their dreams Q&A