GetZooks Executive Summary
GetZooks, Inc. 120 North Topanga Canyon Blvd., #105-180 Topanga Canyon, CA 90290 Larry Roberts, CEO, (310) 455-2629 Randall White, COO, (561) 743-6945
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Welcome to GetZooks International Business Company! It just keeps getting better… Introduction GetZooks is an eCommerce software development company and global Internet peer-to-peer buying and selling platform. GZ Founders have a long term vision and multi-phase plan for capturing the emerging market and establishing GZ as the “standard” in global eCommerce. Based on the response to our Phase I launch in June of 2009, there is ample evidence that GZ can achieve our goals, and provide the significant return on investment projected in this summary. GetZooks software applications provide users with a mobile enhanced on-line business solution for marketing products and services by leveraging the power of social networking. We provide GZ Members the ability to create unique Storefronts and place them into the GZ Member’s own personalized CyberMall. These web stores are filled with brand name and Member products. The web stores are also exportable as widgets to social networks. This way GZ Members need not solicit visitors to their CyberMall page. Instead, GZ Members can bring their stores, products, or CyberMalls directly to their favorite social networks.
In Phase I, we launched our International Business Club in June 2009. GZ Club Members save on purchases, and earn into the global economy from a variety of means and are paid conveniently onto an International Secured DISCOVER Debit Card. GZ enables its Members to: •
Sell their own products globally through GZ Club Distributors
•
Sell other people’s products, including those from qualified affiliate providers such as Amazon, GAIAM, AVON, PetSmart, and thousands more
•
Purchase products at a discount, like a Sam's Club or COSTCO
•
Receive cash rebates on purchases of GZ Club Member-provided products
•
Sell advertising from the Members unique Storefronts and CyberMalls
•
Sell GZ Club Memberships to build a residual monthly income
Club Membership Requirements and Fees: Participants must simply be of legal age and provide an accepted form of government-issued proof of ID. There are no monthly
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Club Membership Requirements and Fees: Participants must simply be of legal age and provide an accepted form of government-issued proof of ID. There are no monthly qualifications to earn commission in the Club, our applications are easy to use, and our Club Members are paid conveniently onto an International Secured DISCOVER Debit Card. There is an initial Membership fee of $59.95, plus a recurring monthly fee of $29.95.
The Problem Employment opportunities are rapidly shifting from traditional Industrial Age sectors, such as manufacturing to retail sales positions, to the global Internet Information Age knowledge market. In order to survive and succeed, workers need to adapt to this trend. Signs of the Time: •
On-line sales are increasing every year relative to “brick & mortar” retail store sales
•
Corporations are downsizing staff by closing stores or dealerships, cutting store hours and retail jobs, and hiring fewer people
•
Outsourcing using information technology, & mechanization of jobs by computers allow corporations to spend less and do more, faster, more reliably, and cheaper
Economic growth is most prominent in emerging markets and this trend will continue due to increased outsourcing. The challenge is in accommodating emerging market users, as most people in emerging markets are currently denied access in the Internet economy for lack of a credit card as a payment method. GetZooks will address this challenge in Phase II, by licensing free CyberMalls and providing an alternative to credit card payments.
The Solution GetZooks provides people with user-friendly and inexpensive tools, training, education and relationships to facilitate the successful development of knowledge market businesses. With GetZooks, former “brick & mortar” storeowners and sales personnel can transition to selling products online, through an unlimited number of CyberStores and in their area of knowledge or interest. GetZooks CyberStores and CyberMalls will offer brand name products, merchant processing, insurance, drop shipping, and tracking. These stores can be placed almost anywhere on the Internet, including social networks like MySpace and Facebook. Additionally, GZ Club Members can create and host unique personalized CyberMalls on their own GetZooks webpage.
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Traction GetZooks pre-launched in June 2009. In the first 30 days of Phase I, prior to a full product offering, we have reached significant milestones. GetZooks. Inc. has: •
Sold over 400 GZ Club Memberships in almost 20 countries
•
Attained over 100% growth from first to second month
•
Issued GZ Club international secured debit cards to first users
•
Broadcast of over 25 global Internet radio shows
•
Set-up a video editing system for making videos
•
Contracted Member-offered exclusive Club products
•
Released our uniquely personalized Storefront Wizards
In addition, GetZooks Club Members have: •
Voluntarily translated GetZooks web pages into other languages
•
Posted over 30,000 GetZooks related Google pages
•
Posted over 50 GetZooks related videos on YouTube
Market Size There are currently over 1.5 billion Internet users around the world, and the number continues to grow daily. Any of these current or future market users will have the ability to enter the Internet economy using a personal computer or cell phone via GetZooks when Phase II begins in 2010. Emerging markets will be able to use GetZooks business software applications for free via a strategic licensing partnership that is already secured. In exchange, GetZooks will earn a commission on every sale. Over the next 3-4 years our target is to reach 1.5% of the total Internet market with the majority being emerging market users. In our current Phase I, where a credit card is required to pay for a GZ Club Membership, approximately 500 million people (33% of the current total number of Internet users) are able to participate. Our target market for recruiting GZ Club Members with credit cards and willingness to purchase on-line is .025% of these current legal age users, or 125,000 people. In contrast, Facebook states they have “More than 250 million active users; More than 120 million users log on to Facebook at least once each day.” Because we offer lucrative economic incentives in addition to social networking benefits, we believe we can conservatively convert .025% of these daily Facebook users. In fact, GZ Club Members are already marketing on Facebook and other social networking platforms. 4
Customers – Current & Potential Current Customers, Phase I: Our current customers are GZ Club Members who pay a monthly fee for GetZooks eCommerce services. We executed Phase I on June 14th with the support of about 18 Internet marketers from around the world as a beta. In the first few days, Membership grew by over 100%, and continued to grow over the next 30 days by over 100% a week, culminating in over 425 paying Members by July 15th. We project continued growth for the next 2 years.
Potential Customers, Phase II: Wireless communications are projected to increase the number of Internet users in emerging countries to well over three billion people over the next five years. These new users will need the tools, education, and relationships for entering the Internet economy. GetZooks intends to play an integral role in facilitating these emerging countries to transition to the Knowledge economy by integrating these services for first world users, and future third world users. In order to support global sustainability and prosperity, our services will provide the necessary means of overcoming the current unsustainable trend of depleting nature’s resources.
Business Revenue Model The growing demand for digital wealth, as opposed to wealth based on commodities, will increase worldwide, creating a new global economy on the Internet. Our Business Revenue Model empowers this potential through multiple, vertically integrated profit centers. Current revenue is generated from: •
Member-to-member subscription sales
•
Member-to-visitor sales of affiliate products
•
Residual monthly GZ Club subscription fees of $29.95
In Phase I, the majority of our revenue comes from Membership referrals and monthly Membership dues. In Phase II, sales from member-created and published digital media products, and affiliate-provided products (like Amazon) will surpass Membership fees as the highest profit center. Generally we incorporate eBay’s revenue model. In exchange for providing a platform for users to effect sales, our company shares a commission. A comparison to eBay is provided in our Executive Summary. 5
Marketing Plan Phase I: GetZooks Business Club GetZooks users from around the world are implementing an individually funded viral marketing plan, and through participation in social networks. Members are making GetZooks promotional videos, websites, and blogs in various languages. GetZooks, Inc. also produces videos, hosts a Global Radio Show four times a week. We will soon launch an e-mail campaign and purchase effective on-line advertising for strategic marketing. Phase II: Application Licensing and Charitable Projects GetZooks has contracted with Peace Portal to provide software licensing of our applications to produce a 24-hour live, world-wide multi-media broadcast of the annual International Day of Peace Global as a no-cost charity fundraising event to support the Millennium Development Goals with Peace Portal partners.
The Free Digital Universe Charity Project will empower many people (including those without credit cards, government IDs, bank accounts, and/or physical addresses) in third world countries to begin earning into the Internet economy by providing them with free GetZooks eCommerce software.
The Power of Social Networking As individuals experience success with GetZooks, they will also be connecting to a network of friends, who will connect with other friends, and so on. GetZooks combines the power of social networking with the ability to earn wealth in an intuitive, friendly, and easy to use environment. Users combine selling affiliate products, services, and digital information, which they or other members have created (music, video, art, or e-books) by leveraging social networking tools (chat rooms, photos and blogs) from their unique and personalized website, Cybermall, or other networking sites (MySpace, Wetpaint, NING, ManyOne) allowing embed of widgets. With the array of choices for earning wealth online, such as contests, ad revenue, or owning an ebusiness GetZooks has a strong possibility of being a viral success.
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Our Simple and Easy to Use Site One of GetZook’s primary goals is for the site to be simple, user-friendly, and easy to navigate. Some of the easy to use features include: •
Free GetZooks domain with ready-to-go CyberMall
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No HTML programming skills required – just click with GetZooks’ proprietary Building Wizard software
•
Training videos, trackable banners, and marketing radio shows
•
Member’s video editing system
•
Free powerful marketing portal application tools
•
Built-in “Supermall” affiliate program enables Users to sell other Vendor’s products
•
Automated merchant and payment processing
•
Real time display of earned funds
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A private “back-office community”, where Users may utilize goods, services, and software applications from strategic partners
GetZooks is perfect for the first time user and online entrepreneur, as well as those already online that wish to expand their business. By enabling users to profit from what they are currently doing for free, e.g., sharing information in the form of music, pictures, blogs, etc., GetZooks is sure to have winning websites that generate viral behaviors among users and businesses.
Our Comparable Competition: eBay Phase I Competition: eBay ProStores GetZooks Club & eBay Prostores have a lot in common. Both companies: •
Charge $29.95 a month
•
Allow users to build their own storefronts
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Sell products, and earn a commission 7
Whereas eBay provides only 5,000 of their products to be sold, GetZooks lets our Members sell millions of products from various brand name suppliers like Amazon, Avon, GAIAM, and hundreds more, plus affiliate Vendors of their choosing. What sets GetZooks apart from eBay is that our Club Members can earn from accessing Member provided Club products, rebates, and exclusive Programs.
Unlike eBay, the GetZooks Club rewards Members with a growing monthly residual income from Club referrals via CyberMalls and direct network marketing of the company. Through the Club Member-offered Prosperity Program, GetZooks Members can earn up to $7,400 per month from residual sign-ups above and beyond product sales commissions. Residual revenue, via Prosperity Program, pays for referrals. LEVEL
MEMBERS
MEMBERS DOWNLINE
PER PERSON
LEVEL INCOME
TOTAL INCOME
PROFIT AFTER FEE
1
3
3
$1.23
$3.69
$3.69
-26.26
2
9
12
$3.23
$29.07
$32.76
$2.81
3
27
39
$2.87
$77.49
$110.25
$80.30
4
81
120
$3.73
$302.13
$412.38
$382.43
5
243
363
$4.49
$1091.07
$1503.45
$1473.50
6
729
1092
$2.17
$1581.93
$3085.38
$3055.43
7
2187
3279
$1.98
$4330.26
$7415.64
$7385.69
Phase II Competition: eBay Auctions In Phase II, GetZooks will license CyberMalls for free in exchange for a percent of any retail sales made. Our comparison to eBay for Phase II is provided on the following page.
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eBay
GetZooks Phase II
Users must supply their own products that they wish to sell.
GetZooks provides all the vendor affiliations for Sellers to retail digital and physical products, for free.
eBay charges a minimum of .35 cents per sales item to promote products on their storefronts, thereby prohibiting many users from entering the digital economy.
Vendor participation is cost-free to all. Vendors may sell their products, or other’s products, directly to those visiting their CyberMall without any start-up, maintenance, or “other” charges.
Users of the system work out the payment method; i.e. PayPal, Netspend, check in the mail, etc….
GetZooks partners and Vendors handle all merchant payment and remuneration automatically, without risk of fraud.
Users must be 18 years old.
No age restrictions apply.
Users must provide a SSN, EIN, or other form of personal identification.
Only an e-mail address is required.
Users must provide eBay with a physical street address, credit card, or identification. Many emerging market users have no address, credit card, or ID.
GetZooks does not require Users to provide a street address, identification, or credit card to make transactions.
Users are expected to resolve their own disputes, Sometimes requiring the help of eBay staff, at an expense to eBay.
The partnering platform has a no-nonsense, speedy and fair dispute resolution process. Since GetZooks suppliers are Amazon, Barnes and Noble, and digital products we deliver, we expect little to no fraud.
eBay can only access approximately 15% of the total Internet marketplace due to the above listed prohibitive restrictions.
Because GetZooks does not have prohibitive restrictions, our system is the singular solution for over 58% of Internet Users. We have the capacity to access 100% of both current and future Users whom come online in our Phase II.
According to Forbes, eBay is worth $46 Billion. eBay estimated their revenues for all of 2006 between $5.7 and $5.9 billion.
What do you think GetZooks will be worth? Only time will tell.
Historical Background GetZooks was created for a specific purpose: to realize the potential of third world emerging markets. The officers, partners, and advisor's operating the platform are seasoned professionals in this specific industry, and have done much work in preparation for launching this business. GetZooks has developed a substantial amount of research related to the viability, need, demand, operational difficulties, and opportunities for this type of business. Phase II is designed to solve the difficulties of the Internet and entrance into the global economic community for those whom are otherwise disenfranchised. GetZooks is not just a business, it is part of a greater Information Age model of global economics designed to address the greatest challenges of humanity; globalization, environmental pollution, lack of education and poverty. 9
Business areas assessed include, but are not limited to: •
Market Need
•
Competition
•
Economics
•
Client Demographics
•
Start-up and Operational Costs
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Availability of Qualified Personnel
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Strategic Alliances
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Internet Communications Technology
Partners GetZooks was created as a fundraising Division of the Eleanor Roberts Educational Fund. GetZooks, Inc. was chartered as a stand-alone corporation with multiple charitable, corporate, and non-governmental partners to be a “for profit” support organization. GetZooks is an official sponsor of the United Nations International Day of Peace Global 24 Hour Multi-Media Broadcast scheduled for September 21st, 2009 and every year thereafter. GetZooks has relationships with numerous corporate vendors, some of which are interested in becoming more involved as partners. Additionally, Members with corporations wishing to have their products distributed through GetZooks CyberStores and CyberMalls are seeking partnerships. GetZooks also has multiple private partnerships with faith groups of various denominations and beliefs participating in GetZooks Charity Program. Qualified charities receive a Free CyberMall for fundraising from sales to constituents, and an ad free Community Internet Portal through our partner maintaining the ManyOne Platform. In return, our faith and charity partners combine fundraising with powerful tools that increase GetZooks conscious branding.
Management Team Mr. Larry Roberts, President & CEO: 35 years experience in financial planning and analysis, tax, treasury, audit, mergers, and SEC compliance. Mr. Randall White, COO: 30 years experience in small business management, including 6 years of providing litigation support. 10
Ms. Kyra Storojev, Chief Technology Officer: 20 years experience in communications. On-air technology expert for CBS News. Northwest Airlines’ In-Flight Program. Published cover articles for Knowledge Management Magazine. Produced and wrote Enter the Internet. Worked with Hewlett-Packard Corporation, Boeing Corporation, HBO, Armstrong and Roy Disney, Jr. as a technology communications consultant. Mr. Jack Casarez, Marketing Manager: 19 years as Internet marketing professional, including 5 years as Marketing Director for Fine Designs, Inc. Ms. Hope Henley, Community Director: 14 years experience in elementary education, and 4 years as small business communications coordinator. Mr. Benjamin Davis, Chief Software Engineer: 20 years experience in coding, programming, and integration of software applications. Ben designed and wrote the proprietary software currently running the GetZooks affiliate commerce engine.
Board of Advisors Mr. Robert Spiotta: 14 years as International Marketing Manager for Mobil Oil Corporation. Robert left Mobil to become the President and CEO of Francis Coppola’s Zoetrope Studio. Under Robert’s tenure Zoetrope produced twelve films, most notably Apocalypse Now, The Black Stallion, The Godfather, & Cotton Club. Mr. Charles Strong: Director of Unity Foundation, a nonprofit established 33 years ago to support UN activities. Charles is the producer of the UN International Day of Peace Global Broadcast. Mr. Robert Foster: 20 years in Internet commerce. From 1995 to 2000 Robert’s website Inetsupermall referred over 50 million dollars in sales to Amazon using the affiliate marketing method employed by GetZooks. Minister Stephen Fantl: Minister Fantl is the administrator of the Peace Portal charitable association, and the designer of the GetZooks economic model.
Marketing Activities GetZooks will closely integrate all of its marketing and sales efforts to project a consistent brand image and a consistent positioning of its products and services. GetZooks will employ a variety of marketing activities to fuel its user acquisition process. These marketing activities include: Optimizing GetZooks Website GetZooks will build its website to communicate with the target market. It will present a consistent message to all market segments. The website will also present useful information and assurances to users wanting to utilize the product. The comprehensive strategy will focus on providing a professional appearance of the site, demonstrating the value of the products and services to a varied audience, increasing competitive edge within the marketplace, and addressing internal and external security and identify and content theft issues.
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Web Advertising GetZooks will buy ads for various search words and phrases on Google and Yahoo, as well as banner ads at appropriate sites. Search Engine Optimization (SEO) GetZooks will optimize its website so that users doing ‘natural’ searches will see the website link on the first page of the search. GetZooks will invest in improving its yield in search engine results. GetZooks will continue to refine its SEO strategy by optimizing to new key words. GetZooks will engage SEO experts to help in strategy. Viral Marketing GetZooks will develop and support strong viral marketing initiatives. Referrals GetZooks will develop further referral programs, whereby existing users receive incentives to refer friends or associates as Users.
Financial Projections Phase I: GetZooks Club, 2009-2011 Members pay $29.95 monthly subscription to GetZooks. Revenues New enrollees Renewals 85% retention Registration @ $59.95 Autobilling @ $29.95 Member Sales Advertising SBTL Expenditures Member commissions Payouts @ $21.00ea Salaries, Mo One time contracts Monthly contracts Vendors Marketing Debit Cards Professional Fees Reserves & unprocessed SBTL TOTAL
June 38
$2,278
July 212
$12,709
Aug
-$350
Oct
Nov
Dec
TOTAL 2009
TOTAL 2010
TOTAL 2011
430
650
650
850
850
3,642
35,000
173,500
344
520
520
680
680
2,744
21,952
147,475
$25,779
$52,540
$52,540
$75,000
$50,000
$268,568 $2,098,250
$10,401,325
$12,879
$19,468
$19,468
$25,458
$25,458
$102,729
$657,462
$4,416,876
$7,881 $3,000
$7,881 $4,000
$11,250 $4,000
$27,012 $354,024 $11,000 $322,000 $398,308 $3,109,736
$2,008,048 $3,944,000 $20,770,249
-650
-650
-850
-3,010
-5,590
-10,750
-$13,650 -$17,850 -$15,000 -$15,000
-$58,632 -$68,500
-$117,264 -$133,500
-$230,076 -$262,000
-$350
-$2,100
$31,150
$97,650
-$280 -$280 -$13,000 -$13,000 -$2,500 -$2,500
-$1,680 -$78,000 -$8,500
-$3,080 -$143,000 -$67,000
-$5,880 -$273,000 -$168,500
-430
-$3,500
Sept
-430
-$4,452 -$9,030 -$13,650 -$5,000 -$15,000 -$15,000 -$350
-$350
-$350
-$280 -$280 -$280 -$280 -$13,000 -$13,000 -$13,000 -$13,000 -$500 -$500 -$2,500 -$2,250 -$12,500
-$350
-$5,000
-$5,000
-$5,000
-$5,000
-$20,000
-$40,000
-$80,000
-$40,600 -$278,012
-$74,900 -$547,594
-$145,500 -$1,067,306
$120,296 $2,562,142
$19,702,943
-$6,300
-$4,300
-$6,500
-$6,500
-$8,500
-$8,500
$2,278 -$12,971
$14,645
$9,418
$32,459
$53,409
$35,878
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Phase II: Capturing the Emerging Marketplace The largest market in history is the combined populations of the Third World. Billions are gaining access to the Internet via cellphones, and GetZooks is poised to capture a significant portion of this emerging market by licensing GetZooks CyberMalls to charities for free. GetZooks and the charities both receive a percentage of the profits from Vendor sales, in a profitable win-win relationship. Putting this into perspective, whereas the GetZooks Club (Phase I) projects 35,000 Members after 18 months in business, free CyberMalls licensed to users through our charitable alliance are expected to reach 50 million people after 18 months, with sustained growth for the next five years. The greatest profit potential of GetZooks comes from engaging the emerging world with a common sense system for thriving in the Information Age economy. We believe the Phase II Financial Projections to be conservative compared to market data. Based on our current traction in Phase I, these projections are realistically and easily attainable. 4 Year Summary TOTAL Revenues TOTAL Expenses TOTAL Profit/Loss 5,000,000 Shares Dividend per share
1st FY 56,435,861 15,739,600 $40,696,261
2nd FY 318,482,529 112,450,000 $206,032,529
3rd FY 592,758,654 241,800,000 $350,958,654
4th FY 854,628,205 424,800,000 $429,828,205
$8.14
$41.21
$70.19
$85.97
In Phase II, the majority of our revenue will come from the sales of Members' digitally published products through sales made by Members' to CyberMall Visitors.
Investment Potential Five million shares of GetZooks stock are allocated as follows: •
3% (150,000) First Round shares are available by invitation for $2.00 per share
•
20% (1,000,000) shares are intended to become available in March, 2010 for $15.00 per share to larger corporate investment partners
•
57% (2,850,000) shares are held by the Company
•
20% (1,000,000) shares have been donated to a charitable trust vested by GetZooks shares
GetZooks is currently seeking a first round investment of $300,000 for 6 months of proactive development and proof of concept in exchange for 3% (150,000 shares) of the company. After 6 months, the company will present to the larger investment firms at a Silicon Valley investors breakfast to raise $15 million for development of the release of our Phase II global contract. Investors will receive dividends from both Phase I and Phase II profits. 13