GunCycle Federal Firearm Licensee (FFL) Introductory Marketing Flyer

Online Auction-BasedFirearm MarketplaceGunCycle is a new online auction-based marketplace for firearm transactions.

Read more inside!

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90 Days Completely FREE(90 days starts after claiming FFL)

Competitive Feedback Credit(Qualified Dealers / see page 7)

FREE to Register

Always FREE to List

2 Getting Started....

Claim your FFLRegister

Feedback Credit

The first step on GunCycle is to register as a user.

Visit:http://beta.GunCycle.com/Account/Register

This step is to setup a user account (basic registration to buy and sell). This account will be linked to your FFL record which will have a public-facing profile page.

You must claim your FFL to link it to your user account which will give you access to edit and update the information on your FFL profile page.

A $10,000 credit* is applied to your account after claiming your FFL. This credit expires in 90 days.

After registering and verifying an account, the next step is to claim your FFL.

Visit the link printed on the back of this flyer orhttp://beta.GunCycle.com/Dealers and search for your FFL. Once you find it, click “Claim this FFL”.

This allows the FFL record to be linked to your registered account. During the claim process, you can update a lot of information about your operation. It is important to provide as much information so GunCycle users can learn about what you have to offer. Remember, this is a great marketing opportunity - so treat it that way!

You want to set yourself apart in any way you can!

So, you have worked hard in the past using other auction-based sites.... You have built up feedback points from all of your hard work. Shouldn’t you be rewarded for your past experience when switching to GunCycle?

Offer:For every feedback point you have earned on competitive “gun-brokering” / auction-based firearm sites, you will receive $1 in GunCycle Credit to be used to pay site fees.

Example:1,000 Feedback Points = $1,000 GunCycle Credit

20,000 Feedback Points = $20,000 GunCycle Credit

The credit never expires and will be applied automatically to open site fee invoices.**

Claim your credit now:http://beta.GunCycle.com/Dealers/FeedbackCredit

** Some restriction apply. See site for more information.* To be used to pay GunCycle site fees. See site for more information.

3About GunCycle

Feedback Credit

Why was GunCycle started?

Cutting Edge TechnologyWhy does it matter to you that we used the newest technology? It matters that we can deploy new features to you quicker and more securely that take advantage of the newest tools. You and your customers’ user experience will be better.

3

Goal: Create a streamlined online marketplace for buying and selling firearms and firearm-related goods.

Mission:To succeed in the goal of providing a streamlined online marketplace for firearms that is easy and intuitive to use while keeping expenses for buyers and sellers as low as possible. Also, to provide a resource for those researching firearm makes, models and their values.

Pledge:• Listen to feedback. We love to hear and will react to feedback to address

our user’s needs. Please submit feature requests and comments.• Innovate and Improve: Always be improving site features. A continued

development to make site better by providing new or process-streamlining features. Be FFL Dealer-centric; focus on the dealer’s needs which will benefit buyers

• Be Relative: Few, very-relevant ads on site. Never have ads for non-firearm related items or services.

• Embrace Current Technology: Don’t fall behind on technological improvements; keep site fresh and cutting edge.

Dealer Community:Form a partnership with the FFL Dealer community and aid them in their mission to provide firearms by providing the best, most affordable platform.

Let’s face it... the auction process itself is pretty simple. There are already sites that do this. So, why create GunCycle?

Simple. It was clear that it could be done BETTER!

GunCycle was engineered from the ground-up specifically to be a marketplace for firearms and accessory items; matching buyers and sellers through an auction process.

Building the site on the latest, most up-to-date technology platform allows additional features and functionality to be incorporated into the site that aid buyers and sellers. Where GunCycle stands out is by making the process easier.

Paying particular attention to the Firearm Dealer, the business model is based on the philosophy of giving incentive to the dealer to list items on the site.

4 Listing Features

Item Listings

CycleSearch (coming soon)

The listing process is simple with just two steps.

The item listing page is the heart of it all. This is the page that shows the detail of the item you have for sale including the product title, optional subtitle, images, optional YouTube video and a free-form product description.

The interface is clear and easy to use. The site bidders will find up-to-the-second pricing on the page without refreshing so they will always know the current price.

See part of an example listing page to the right.

A unique feature of GunCycle is CycleSearch. In a few words, it is a method of gathering additional information during an optional third step in the listing process. Geared toward firearms, this step allows the lister to provide information relative to the specific firearm they are listing.

In turn, this information is used in clever ways. Most simply, it aids search but even cooler (top-secret) features are under development using this information.

5Auction Feataures

GunCycle is feature-rich. With 40% of the development features list completed at launch, you will see additional features flowing through as completed. Our design focus is FFL-centric.

Standard AuctionList an item for sale and bidders place bids until the end of the timeframe specified.

Fixed Price AuctionsItem is listed for sale at a specified price. The item may be purchased at this price anytime during the auction term.

Good ‘Til Cancelled (GTC)Fixed price listings can remain active indefinitely until ended early, or in the case of fixed price listings, the quantity drops to zero.

Reserve PriceWhen listing an item, a reserve price can be specified. This is the minimum amount the seller will accept. Bids start and progress. However, if the reserve price is not met at the end of the auction, there is a no-sale.

Buy NowThis is is a hybrid function of the Standard and Fixed Price auction types. An item is listed and bids are placed until the end of the auction term. However, at any time during the term, a buyer can elect to buy the item at the specified price.

Bulk RelistReactivate a selection of unsuccessful closed listings all at once.

Feedback Rating SystemFeedback can be left relating to a transaction. Feedback points range from 1 (bad) to 5 (best) with space to leave a comment.

Auto-extend (Sniper Protection)If a bid is placed within 5 minutes before the item ends, the auction will be automatically extended 5. For example: When a Bidder places a bid on a listing with 1 minute left before the end of the auction, the end time for the listing is extended for another 5 minutes.

Auto RelistAuction listings can be renewed automatically when they expire without a winning bidder. Relist function resets and activates existing listing and retains original ID! Makes it easier to keep track of it.

Proxy BiddingThis feature allows unattended bidding to take place on your part. Bids are automatically entered on behalf of the bidder for the lowest amount required to win the item. When you place a bid on an item for $25.00 when the current high bid is $15.00, your bid will be $15.50 ($15 + increment). Upon another bidder bidding higher than you, a subsequent bid will be placed at the next increment until your original high bid is met.

FFL’s Profile on Auction PageThe FFL Profile page is linked on all auctions by an FFL. This allows bidders to better understand who is selling the item, increasing their comfort and increasing their bids.

Multiple Shipping OptionsSellers can list multiple shipping methods and pricing. Where multiple shipping services are available, it is often good to list the price for each, allowing the customer to choose which one they would like to use.

Payment and Tax info can be updated when creating new listingsPayment and Tax Details can be updated while creating a listing. Instead of having to cancel the listing and update the information to then create a listing.

Taxable Shipping OptionSales tax can be applied to the shipping amount. Not all states require this but for the ones that do it can create calculation errors leaving the seller short.

Taxable checkbox for each invoice line itemAllows finite control on what gets charged sales tax. In some cases, certain items are NOT taxed while others. An example might be a fee to apply night sights. Services are not taxed in some states.

Archive completed successfully sold listingsSellers can archive completed successfully sold listings, hiding them from view. This de-clutters your admin page.

Variable Auction TimesChoose from 3, 5, 7, or 10 day auction terms. GTC (Good ‘Til Canceled) is also an option.

FFL FinderSearchable listing of Federal Firearm Licensees that can handle inbound and outbound transfer.

6 FFL - and endangered species

2013THERE ARE FEWER DEALERS

47k

2010

53k

2005

158k

1995

219k

1985

146k

1975

150k

200k

100k

50k

0Chart of licensed Dealers

There are tons of firearms being sold each year.

FIREARM SALES ARE GREAT

25M?

2013

19.5M

2012

16.5M

2011

14.4M

2010

14M

2009

25

20

15

10Chart of NICS checks

With record firearm sales, it makes sense to be as efficient as you can. GunCycle is easy to use, fast and will speed up your auction process.

More sales with fewer dealers?The volume for each dealer is growing. There is an inverse relationship between the number of firearms being sold each year and the number of licensed dealers.Is this good or bad? It is GOOD for the existing dealers! But, it means that you need to be more efficient with your business. When it comes to online business, you need faster listing process, quicker and easier communication, relaying more information to bidders so they don’t have to ask questions. It is up to YOU to be as efficient as you can be in your business. Pick the right service!GunCycle’s CycleSearch is a method of gathering information about the firearm you are auctioning to aid in the site user’s search for items. This feature is under development but will be released Q2 / 2013.

7What does it cost?

Claim your Competitive Feedback Credit TODAY!

There is no reason to delay. Signing up and claiming your credit will give you a “breather” from fees while getting a better user experience.

Example Pistol Salethis is what it sold for online

$550Example Pistol Costthis is what you paid for the firearm

$500Gross Profitthis is money you made on this transaction, before cost(s)

$50Fees on gun-brokering sitesthis is the final value fee on other sites -$13Fees as a percentage of gross profitthis is how much you pay of YOUR profits to other sites 26%

COMPETITIVE FEEDBACK CREDITCAN IMPACT YOUR BOTTOM LINE!

Competitive Feedback Credit?

GunCycle .com GunCycle .com

GunCycle.comBETA

GunCycle offers a Competitive Feedback Credit (CFC) program. This is designed to aid in your transition to GunCycle by rewarding you for your past performance on gun-brokering sites.

Take these steps:1. Register as a user on site2. Claim your FFL3. Claim your CFC

Once your redeem your CFC, you’ll have a credit amount applied to your seller account. This credit does not expire and will be auto-applied to fee invoices generated from your listing activity. You don’t even have to apply the credits.... it happens “automagically”.

GunCycle impacts your bottom line!!

Do you want to keep more of your profits?

GunCycle.com

2802 John Brown RdPrinceton, KS 66078P: 331.222.9253E: [email protected]: www.GunCycle.com

GunCycle, LLC

Claim YOUR FFL today! Then, collect your Feedback Credit!Type the following customized URL into your browser to go straight to your FFL claim page. Once there, add information about your services. You’ll see we are collecting information so we can make the FFL selection process more informative for the site users.If you have been active on certain competitive online auction-based sites in the past, submit a Feedback Credit Claim (CFC) right after claiming your FFL. Once approved, this credit will be applied to your account and can be used to pay GunCycle site fees. See page 7 for more information.

GunCycle.com

Unique URL JUST for you

Search for GunCycle on FacebookBe sure to ‘Like’ our page for updates

www.GunCycle.com

GunCycle, CycleSearch and the GunCycle logo are trademarks of GunCycle, LLC

If you experience any issues with the URL above, visit http://beta.GunCycle.com/Dealers and search for your listing.

Contact UsGunCycle is web-based so most communication is handled through the website. But, if you have technical issues, questions, need clarification or anything else, give us a call! We admit, sometimes topics are best handled over the phone.

P: 331.222.9253