SMRC Technology
Social Market Research for Charity
SOCIAL
MEDIA
REWARDS
TECHNOLOGY
SMRC Technology
• SMRC is 2 years in the making• Phillip Nakata 6.5 years with IBM as CTO• Retired 3 times IBM asked him to come back 3 times• Phillip Nakata a born Genius • SMRC Technology is Biometric Security and Artificial Intelligence• SMRC Data gathering technology that is Anonymous to protect the consumer• SMRC Pays consumers for their Anonymous data• SMRC Creates an Artificial Intelligence Persona for each consumer they can Trust• SMRC Sells the Anonymous data to advertisers wanting to target market buyers with 100% accuracy• No more Spamming or mass emailing as a shot gun approach it's laser targeted to interested parties only• Current Competitors in the marketplace Google, Yahoo and Bing• We have 10 million subscribers in the pipeline through our pre-selling• Sponsors like celebrities or large organizations can earn approximately 4% or .03 cents per consumer per day that are signed up to SMRC • Sponsors earn $30,000 per day on 1 million subscribers to our service for life• Consumers get their own trusted Artificial Intelligence Persona to guide them through life and protecting their identity online• Source of income for Consumers, Charities, and Sponsors• Advertisers can tap into the the Anonymous data for a fee• 80% of our fees goes to payout Consumers, Charities, and Sponsors• SMRC estimated earnings over $1 Billion in the first year by 3rd year $50+ Billion
• This week we took in $75k in partners and have $300k-$500k already committed over the next 2 weeks• To Launch we need $3 million in Phase I, we will be seeking $25 million in Phase II• We're offering Board role and profit sharing to early partners of Phase I only
Social Market Research for Charity
• Video and Ad (fulfillment) Delivery System• Incentivized Advertising (Custom, qualified Fulfillment)• 100% Ad (qualified fulfillment) Validation• Guaranteed full Consumer Response (match)• Ad (fulfillment) Revenue Payouts to Publishers, Charities,
Subscribers, Celebrity and Sponsor Partners • 1st year Growth potential of 300 million subscribers• Millions of Publishers from Google’s off-market
aka SMRT (Social Media Rewards Technology) The ultimate in Social Marketing (changing behavior for social good)
This is a direct challenge (or joint venture, equity partner opportunity for social good) to Google, Yahoo and Bing.SMRT will be the next advertising (incentivized fulfillment ) and peoples’ social marketing platform - Optimizing the potential of our
collective social intelligence from each Persona: Trusted Companion, Guardian & Guide for Life
SMRC does not generate original content, nor is it a search engine. It’s monetization is based on precisely understanding each person’s interests (and influences) - turning hosts into authority sites, and then fulfilling each person’s interests by matching them precisely with no-
cheating sponsor attention/usage research games ; no purchase required; as donations & benefits; mass conversions, goodwill & loyalty.
SOCIAL
MEDIA
REWARDS
TECHNOLOGY
Biggest Spending Industries Online
What Industries Contributed to Google’s $37.9 Billion Earnings?
Here are the BIG Spenders Travel Web sites:
• Booking.com $40.4 Million• Expedia.com $28.9 Million• Kayak.com $28.7 Million• Marriott.com $20.9 Million• Priceline.com $19.6 Million
See the Full Chart here:http://theworldofcode.com/gallery/
2012 Amazon.com earns $600 Million in Ad Revenue
45% Growth in Ad revenue last year. The net ad revenues come after Amazon pays for traffic acquisition costs (TAC) to partner Web sites.
Phillip R. Nakata Founder SMRC/SMRT
A 35+ year profile of Best Practice Industry Leadership, Strategic Planning, Business & Architecture Development, Project/Service Development, & Marketing/Sales for Interactive Social Web Technologies & now Philanthropy
20+ years leading and managing strategic re-engineering [to be => as is] initiatives for marketing, relationship management, business planning, professional services, project management, software design, development & integration of leading edge technologies:
• IBM Strategy / Solution consulting as Interim CTO to key CIO’s• IBM Team leader for IBM migration from proprietary SNA &
hardware to TCPIP and object/service base revenue models• Principle/ Partner for CSC National practice contributing over $700
million in e-Business B2B revenues (supply chain, procurement, futures markets)
• Directed task force guidelines on architecture scalability, integration security and management of e-business services
• Managed IBM’s auditing teams for enterprise application architecture
• Principle in multiple successful Business Process Reengineering redesigns & deployments
Leadership
Phillip R. Nakata Past Clients and Relationships
JP D’Zahr Co-Founder SMRC/SMRT
Has 20+ years in Online Technologies, As AZ Publishing co-founder and marketing director, Mr. DZahr serves as the thought leader with regards to marketing strategy development including working with Business Unit leaders, Operation Analytics, Account Management and Decision Science to define statistical model needs, segmentation criteria, offer selection, and budget management.
He is responsible for driving an effective and efficient direct marketing strategy, and providing ongoing improvement through new concept testing, refined targeting, and algorithmic adjustments, and process streamlining. Additionally, Mr. DZahr conducts qualitative and quantitative research to make business decisions regarding the company’s direct marketing and contact data investments. Mr. DZahr heads a the company’s Partner Program that enables participating companies to monetize their marketing efforts from 100% to 2000% increases by building their opt-in subscriber base. Mr. DZahr is responsible for marketing campaigns from 100K subscribers to 25 million subscribers. Other specialties include: Digital Imaging, Web Development, Online Marketing, Strategic Business Planning, Business Development, Packaging and Design, Content Development and Content Management for Millions of pages for Authority Web sites, Ecommerce and Media Buying.
Marketing
JP D’Zahr Past Clients and Relations
Creating value from social content, sponsor content & networking
User-centric ‘will like’ themes profiles:• Acquired w/o identity content, by cause
marketing sponsors for 2X the response w/ SMRC’s noninvasive matching.
• Used by each follower’s on-going service to match with sponsors offering rewarding research
Likes / Dislikes
and how m
uchAuthorized
Public SocialMedia
SponsorsInvite their followers
FollowersInvite their friends &
followers
Follower’sFriends & followers
Matching interests & adding requirements, to create personalized, noninvasive & self-qualified preview opportunities,not requiring, but influencing purchase. NOTE: Prospect interests are validated by profile & active social discussion.
Sponsors add their social-demographic requirements + matching theme keys (from the anonymous - no identity content), for 2X the response, from self-qualifying opportunity listings
Creates Custom Search Themes from historical and current social activity, tied
to member’s charities.
No Identity Revealed
Qualified**, anonymous profile to register,
related to profile’s Custom Search Themes.
Syndicated Social Sponsor’s website or storefront
directs to rewarding opportunities at:
Interactive HTML5 Mobile Video compatible
Determines opportunities related to member’s Custom Search Themes & then non-invasively (encouraging 2x response from the 46% who never respond) promotes opportunities to:
Authority Web sites
OEM: AdWords / AdSense/ OpenX
Open Source In-line Video alternative to Mobile Flash
**100’s of parameters. More diverse, and accurate than any
on the market.
Sponsors in every social topic & keyword
theme(add qualifications**)
From previous slide
Personalized Opportunities, no purchase required
Member’s Opportunity Report - database listing rewarding research game
opportunities & **requirements. (only in topics they are about &
will like & are talking about)
***61% of people will try a new brand when co-branded. 80% will switch brands. 83% want more cause marketing. Study sample size: 248M (Cone 2010)
Funds Charities
ConsumerSubscribers
Celebrities& Corporate
Partners
BehavioralData
Social Market Research for Charity’s (SMRC) rewarding, fulfilling research: brand education & attention/usage research games; no purchase required
• SMRC allows every sponsor to easily offer simple $1+ audience research games that reward 10 documented minutes of a follower’s un-divided attention.
• While many people would not respond for $1-$2, most will, if it is for their favorite charities along with providing the equal value in ‘rewards’.
• Sponsor requirements create qualified prospects.
Product and Channel Add-ons
• Interactive mobile video (click HERE for our mini white paper): • Mobile/ Handheld markets all work with HTML5 Video (WebM, OGG and MP4) or
YouTube videos (non-annotated), which includes audio support. SMRC promotes using HTML5 Video --- integrated with HTML5 and best practices object-based coding --- for mobile markets.
• OpenX: Google AdWords OEM Clone• Average 60% savings/revenues. Served by each Persona’s (or their best
friend’s) precise interests from hundreds, growing to thousands of sponsors.
• Authority websites (every Host), with custom ads.• More visibility with industry, niche or socio-geo-demographic focus & top
search ranking; Exploiting the Anonymous Persona API turns any host or sponsor into an “authority” website as feedback reshapes those Personas.
• Average 60% savings/revenues; High conversions as each is custom.
• Professional Consulting Services: • Service-Oriented Development, Professional Business & Technical Services • In-depth social market/ marketing/profiling analysis
How We Compare to the Competition
Can you see the difference?
Totally non-invasive (personalized), Ultra Low Costs, Mass Response/ Traffic, Fulfilling prospect’s interests as incentivized, sponsor qualified leads.* 2X+ the value (goodwill, loyalty, sharing, response) for the same cost.
Can you see the why this works?
Our World is simple, we just connect
Project Timelines
2014 20162015Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Work with 3rd party Ad Delivery systems, Work with 3rd party Authority Web sites and partners
Worldwide Release of SMRT services. Working with 3rd party Ad Delivery systems, Authority Web sites, Search Engines & infrastructure
Establishing USA Data centers
Technology growth and International corporate partner growth
Call Center Marketing facility ready and signing Celebrities, Charities and Advertisers
Technology and subscriber profiling melding with Ad Targeting
Banking solutions agenda for structure and security
The Billion dollar view of our company
First 6 month process that we will deliver in < 3 mo. w/ $3MM launch
JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
• Build 1st Data center• Begin Technology
Development• Find a space for a
call center
• Lease call center space for a 1 year period
• Equip call center with computers and phone lines
• Integrate data with design elements and 3rd party Authority web site
• Begin hiring process once call center is ready
• Begin training call center people with 1st revenue program
• Signup Advertisers, Charities, Celebrities, and Publishers
• Launch SMRT Search• Work with 3rd party Authority
sites• Build online partnerships
• Purchase data for niche market
• Produce revenue programs for each niche market for call center
• Build online partnerships
• Work with 3rd Party Authority Web sites
• Purchase data for niche markets
• Produce revenue programs for each niche market for call center
• Train call center for new Advertisers, Charities, Celebrities, Authority sites
• Add new revenue programs to call center
• Continue Media buys• Continue partnerships
programs
10 Million users in the pipeline and delivered in 90-120 days
Valuation is based on users, here’s what others are valued at:
VC Funding deals over the past 12 months
SMRC Financial Model
SMRC operating costs; -; 8%Hosts Rewards; -; 4%Sponsor Rewards; -;
4%Publishers payouts; -;
4%
Subscribers & Charity payouts; -; 80%
Clients and Circulation Based on Subscribers, Hosts, and Referrals
• The largest Religious Associations online has over 100 Million followers who would be our 1st Subscriber base
• Wireless Internet provider in France working with Cambium Networks, AZENN and Colt Telecom. We can reach up to 50,000,000 people and our network.
• Celebrities in our pipeline can bring in another 100 Million followers
• High Traffic Authority Web site Publishers have traffic of 300-500 Million views per month
There is a limited population so the first groups to capture their subscribers will have the greatest income potential!
We payout .03 cents per profile/ per day, to Celebrities,
Associations and Publishers that can sign up their followers to
our incentive program
Daily EARNING Potential toSigning up Host subscribers
Followers Paid 3 cents Daily Payout 10,000,000 0.03 $300,000 20,000,000 0.03 $600,000 30,000,000 0.03 $900,000 40,000,000 0.03 $1,200,000 50,000,000 0.03 $1,500,000 60,000,000 0.03 $1,800,000 70,000,000 0.03 $2,100,000 80,000,000 0.03 $2,400,000 90,000,000 0.03 $2,700,000
100,000,000 0.03 $3,000,000
Why use Incentives? Because it works!
• Sales Incentives - To increase sales• Employee Incentives - To motivate, retain and reward loyal and efficient employees• Customer Loyalty Incentives - To build customer loyalty and trust• Referral Incentives - To develop contacts or promote referrals• Purchase Incentives - Increase cash flow and obtain money upfront• Member Perks - Sell new accounts or memberships• Encourage responsiveness or trial of product or service
Here are just a few types of companies who successfully use Incentives in their businesses:
Auto DealershipsNon-profit organizations (fundraising, etc.) ChurchesRadio StationsFurniture RetailersService ProvidersManufacturersWholesalers
Multi-Level Marketers
Catalog Companies Public Speakers DistributorsRetailers Jewelry Stores TelemarketersBanks
Office Supply Companies Credit Card Companies
Real Estate Brokers Insurance Companies Sports Organizations Mortgage LendersAccommodations IndustryTravel Industry
Why SMRC’s security, precision matches & philanthropic incentives work: 5 stats validated by 20+ years of research on philanthropy & motivation; source: Cone Inc. (http://www.conecomm.com/research-from-cone)
• 46% of people, rarely respond to any advertisement (the passive majority).• 80%+ of the balance of above, don't mind ads that are relevant and rewarding.• 85%+ of people are interested in supporting social causes with all purchases.• 80% of Americans are willing to switch brands that support their mutual social causes.• 61% of Americans are willing to try a new brand that supports their favorite social cause.
SMRC further offsets the many negatives (favoritism, bad charities, privacy, etc.), associated with most philanthropic incentive-based initiatives, by:1) Precise matching of each person's topic interests and secondly, their precise philanthropic interests, 2) Generating hard market and behavior/attention/experience research (not surveys) – for donations to the
follower’s favorite cause, with the deductible value of the donations going to the consumer, in return for shared goodwill (corporate & consumer social responsibility) & loyalty.
3) Generating regular social impact reports on all charities.
By contrast, we also protect their identity with every use, create research value for all of their anonymous everyday activity (enhancing their Persona) - plus throw in a no-cost SmartPhone; that creates a stream of daily & hourly donations to their favorite social causes, and benefits of equal value ... plus priceless personal benefits; no purchase required.
Incentive Advertising works! Free calls 4 watching Ads
50 Million users can’t be wrong
Advertisers LOVE Incentive
Advertising
Incentive Marketing to Millions of
Viewers
Target Advertisers
What Advertisers will Pay and What they will Get
Ads are Targeted Leads, Views/Circulation, Competition, and Minimum rates during startup phase. Expectations are to deliver 10 times the volume of views and
delivering double the sales performance.
Advertising costs included in operating expenses of Company-operated restaurants primarily consist of contributions to advertising cooperatives and were (in millions): 2009–$650.8; 2008–$703.4; 2007–$718.3. Production costs for radio and television advertising are expensed when the commercials are initially aired. These production costs, primarily in the U.S., as well as other marketing-related expenses included in selling, general & administrative expenses were (in millions): 2009–$94.7; 2008–$79.2; 2007–$87.7. In addition, significant advertising costs are incurred by franchisees through contributions to advertising cooperatives in individual markets.
Wal-Mart Stores, Inc. (NYSE: WMT) is the world's largest retailer and grocery chain by sales. Wal-Mart is so large that its almost 50% more than its 5 closest competitors combined, including Target (TGT) and Sears Holdings (SHLD). Because of its mammoth size and buying power, Wal-Mart can buy its products at rock-bottom prices, exchanging high purchase volumes for low cost while passing the savings onto its customers. Many suppliers give in to Wal-Mart's pressure because they depend on the discount retailer for a majority of their sales.
The Allstate Company (ALL) provides a range of insurance products to clients, including auto, homeowner, and life insurance. A Fortune 100 company, with $133 billion in total assets, Allstate sells 13 major lines of insurance, including auto, property, life and commercial. In order to maintain margins in increasingly competitive insurance markets such as auto insurance--where major competitors Geico and Progressive (PGR) offer rate reductions to "switchers"--Allstate has pushed its bundled offerings, hoping to serve as a one-stop insurance provider to its customers. Bundled products may be especially important to build relationships, as "switchers" engender little customer loyalty; after all, customers who switch from one provider to another are likely to leave again.
• COST OF ADS are .03 cents plus the value of what an advertiser believes the highly qualified Lead is worth.
• The Lead value can be $1.00, $10.00 or $35.00 and up
• We offer personalized search
• 100% Ad Validation and retention
• Advertiser only pays .03 cents if not validated
Sponsor Channels: In all channels below, the sponsor’s fulfillment/research opportunity (1) Precisely matches the user's (or their best friend's) interests (qualified by accessing the anonymous Persona; sponsor access cost of $0.03-0.10/lead/day), and (2) Concludes with a no-cheating research game based on attention & recall, similar to 'Where's Waldo' mixed with 'Trivial Pursuit' - Designed to secure 10 minutes of un-divided attention (to even trivial details as a game) - For an average $1-2 as donations & the equal value in benefits; no purchase is required; purchases also carry 5% as donations & benefits for a post-purchase review, and testimonials generate $5-10 in value.
A. On any SMRC host's website (like Incentivized Pinpoint Ad-Sense): The service senses each anonymous Persona, and OpenX matches an appropriate Sponsor's fulfillment opportunity in the following order:
(i) The host's offerings first, followed by (ii) The non-competitive total SMRC sponsor offers in the order of precedence by the user's interests (iii) With a secondary sort, based on the value of the donation/rewards being offered by competing sponsors.
e.g. Sponsors compete for visibility by Persona match first, then by generosity (Goodwill and consumer value), as compared to just consumer value. Donations + equal value benefits = Goodwill and Loyalty.
B. In any media that allows for incentive based response: same rules apply as above.
C. From the SMRC Sponsor Portal (Anonymous collectives): Direct to each anonymous Persona, qualified by their active social discussion/Persona (or by a best friend's Persona who is interested/consumer) and additional sponsor parameters including demographics and lifestyle.
SMRC Financial Model for all user content, research, awards & networking
80%: Member donations and member rewards4% : To original Host as donations with rewards4%: To Hosts for feedback by followers from another Host.4%: To the Smart Phone with SMS & shared Wifi (pays carrier from benefits side of donation for shared WiFi access)
8%: As SMRC operating service expenses
Benefit Summary:
A. Followers: (1) identity protection (authenticated anonymity), and (2) sustainable personal, social and philanthropic value for (a) all anonymous personal, social and host content activity, (b) sponsors and the Persona precisely fulfilling their (or best friend’s) interests, and (c) networking activity.
B. Hosts: (1) 100% follower anonymous personalization (by Persona API) – to become an authority site, (2) anonymous authenticated response (site credibility), (3) Content and follower monetization, and (4) site ad real estate becomes “incentivized custom fulfillment” (personal ads w/o purchase required) – generating mass traffic, content and goodwill/loyalty.
C. Sponsors: (1) Pinpoint marketing to (a) qualified prospects and (b) prospect’s best friends, direct or via hosted sites (matched to responding Personas), (2) invaluable hard attention research (as compared to surveys), stimulating (3) mass response, conversions, goodwill and loyalty.
3 Year Forecast Earnings
Year 1 Year 2 Year 30
20,000,000,000
40,000,000,000
60,000,000,000
80,000,000,000
100,000,000,000
120,000,000,000
140,000,000,000
160,000,000,000 Graph data reference
COG and Operating Costs Gross Profit (income - costs) CashFlow
By Month 12 Year 2 Q1 Year 2 Q2 Year 2 Q3 Year 2 Q4 Year 30
20,000,000,000
40,000,000,000
60,000,000,000
80,000,000,000
100,000,000,000
120,000,000,000
140,000,000,000
160,000,000,000 Graph data reference
Gross Profit Cash Flow
SMRT/SMRC Projected Revenues
By 2nd Year, 4th Quarter, We have reached the Billion Dollar mark in
profits – while generating 10X that for social causes and 10X that
in sponsor economy from incentivized personal fulfillment
(e.g. Custom Fulfillment).
SMRC Equity Sponsor Partner Investment – Objectives/Use of Funds
1. $3 Million: to achieve (based on 10 million people’s content)• $2+ Billion in Charity + Rewards• $100+ Million in Sponsor Charity + Rewards• $200 Million in Awarded Donations + Rewards• $200 Million Net Operating Profits• 2/3for Marketing, 1/3 for Development
2. $25 Million: To achieve 3 year projections in 2 years• $137+ Billion in Charity + Rewards• $5.96+ Billion in Sponsor Charity + Rewards• $11.9+ Billion in Awarded Donations + Rewards• $11.9+ Billion Net Operating Profits• 3/4 for Marketing, 1/4 for Development
3. $100 Million: 3 year plan in 2 year - Own the bank managing:• $166+ Billion in Charity, stimulating $1+ Trillion in Cause Mkt. Revenue • $166+ Billion in Rewards, to Sponsors, Followers, and Awards• $11 + Billion in SMRC service revenues
NOTE: SMRC’s 3-5 year Exit Strategy => 51 %+ ownership by our 501-c3’s
SMRC Equity Sponsor Partner Investment – Returns & Benefits(30% Founder, 40% Preferred, 30% Common; 20% Founder pre-allocated)
1. $3 Million: to achieve (based on 10 million people’s content)• 40% of Executive Founder Shares (8% of total shares)• Profit sharing (50% of total) between Co-Founders of SMRC launch.• Net annual increase in value of 15 to 1• 35% Dividend• All Benefits of being a SMRC sponsor (at double rates for pre-registering)
2. $25 Million: To achieve 3 year projections in 2 years• 40% of total shares (Executive/Founders + Preferred or Common)• Net annual increase in value of 10 to 1• 35% Dividend• All Benefits of being a SMRC sponsor (at double rates for pre-registering)
3. $100 Million: 3 year plan in 2 years - To own the bank:• 80% of total shares (Executive/Founders + Preferred or Common)• Net annual increase in value of 5 to 1• 35% Dividend• All Benefits of being a SMRC sponsor and bank principle
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Disclaimer
This presentation is for informational purposes only and is not an offer to sell or a solicitation of an offer to buy any securities in any to be formed entity which may own any future SMRC/SMRT project. Any future offers to sell or buy such securities will be made through offering documents distributed to qualifying prospective investors. This Power Point presentation makes forward-looking financial projections, plans, policies, management strategies, targets, and schedules. SMRC/SMRT has prepared these forward-looking projections/statements on the basis of currently available information with respect to industry standards, predictions, expectations, assumptions, plans, and awareness which contain known and unknown risks, uncertainties, and other factors. Since the impact of these risks, uncertainties, and other factors may actually be sustained, actual results, operating results, and financial performance may substantially differ from the details expressed or implied in the forward-looking projections/statements.