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Ownership Is The Ultimate Loyalty Program
The Opportunity
Build iConsumer by turning shareholders into customers.
Make 1,000,000 ordinary people shareholders in a public company.
Democratize the Wall Street experience.
MISSION
For free.
®
Convert prospectsinto customers & investors by providing them with money saving opportunities (cash back & coupons.)
“Give” shares to 1,000,000 people to build prospect list.
Customers earn more shares as they shop more and refer friends.
HOW WE GET THERE
®
BUSINESS MODEL
1 iConsumer members shop at 1,700+ participating retailers Retailer handles all aspects of transaction (billing, shipping)
Retailers pay iConsumer a commission (~1-20% of transaction)Additional revenues from advertising & data mining
iConsumer shares commission with member (cash back)~ 80/20 split (i.e. 20% gross margin)
2
3 4
®
Members earn equity in iConsumer as additional reward for shopping Consumers also earn equity for referring other customers
In Billions of Dollars
$140 $2 $4 $6
PROVEN OPPORTUNITY
$8 $10 $12
In Millions of Members at Liquidity Event
900 10 20 30 40 50 60
Digital coupon/cash back industry is a proven, large market.Multiple billion dollar liquidity events in last five years.
70 80
®
2008 recession impact: scared to invest &dislike Wall Street
Feel disenfranchised:burdened by debt &pinched for money
GROWTH OPPORTUNITYCustomer acquisition is the biggest challenge. By engaging millennials (and others) on an emotional and aspirational level, we expand the market and differentiate ourselves.
Digital natives: new waysto approach and retain
Fundamentally different: seeking both personal gain& societal benefit
®
STRUCTURAL OPPORTUNITY
Every shopper becomes an owner.
Regulations have changed, “beingpublic” less costly under Reg. A+.
Giving shares away creates a unique, non-cash currency to acquire members.
Leverages iGive infrastructure, staff, &1,700+ retailers.
Leverage iConsumer members to recruit additional members with equity rewards. Jet.com example.
iConsumer public as of 9/29/16.
®
OPERATING ASSUMPTIONS
~ $ 384 eBates sold for ~$384
per member, other liquidity events valued members ~$200
~ $ 50-100 annual revenue
per member
~ 80% avg. cash
back rebate
~ $ 10-15 per annum cost to support early
members, costs reduce as we scale
~ $ 5-20 operating profit per
member per year
< $ 50 cash to acquire member
currently $24
®
PHASE I PHASE II PHASE III PHASE IV PHASE V
JUNE 2015 JANUARY 2016 Est. APRIL 2017 Est. SEP 2017SEP, 29 2016
PUBLICComplete
Complete
GROWTH / USE OF FUNDS
Create successful operating company
Alpha Phase (June 2015)• Message testing
(2nd half, 2015) • Launch apps / site /
browser add-ons
PHASE I
PHASE I PHASE II PHASE III PHASE IV PHASE V
JUNE 2015 JANUARY 2016 Est. APRIL 2017 Est. SEP 2017SEP, 29 2016
PUBLICComplete
Complete
GROWTH / USE OF FUNDS
Create successful operating company
Alpha Phase (June 2015)• Message testing
(2nd half, 2015) • Launch apps / site /
browser add-ons
Test by switching customers from
incumbent competitorsBeta Phase (Jan. 2016)• Added Gatekeepers • Tested Viral • Promotional – increased
cash back• First qtr. member
acquisition testing
PHASE I PHASE II
PHASE I PHASE II PHASE III PHASE IV PHASE V
JUNE 2015 JANUARY 2016 Est. APRIL 2017 Est. SEP 2017SEP, 29 2016
PUBLICComplete
Complete
GROWTH / USE OF FUNDS
Create successful operating company
Alpha Phase (June 2015)• Message testing
(2nd half, 2015) • Launch apps / site /
browser add-ons
Test by switching customers from
incumbent competitorsBeta Phase (Jan. 2016)• Added Gatekeepers • Tested Viral • Promotional – increased
cash back• First qtr. member
acquisition testing
• Public - SEC Qualified(Sep. 29, 2016)
• 11,500 Customers• Revenue• Member Acquisition
Metrics confirmed - $24 per shopper
PHASE I PHASE IIBeta PhaseMilestones
GROWTH / USE OF FUNDS
Go Public: Launch
$150,000 Raise• Rebrand for
#GetYourShare• Get Listed OTC QB
o Provide shopper / shareholders with publicly visible value for their equity
• Start Faces Campaign
PHASE III
PHASE I PHASE II PHASE III PHASE IV PHASE V
JUNE 2015 JANUARY 2016 Est. APRIL 2017 Est. SEP 2017SEP, 29 2016
PUBLICComplete
Complete
GROWTH / USE OF FUNDS
Go Public: Launch
$150,000 Raise• Rebrand for
#GetYourShare• Get Listed OTC QB
o Provide shopper / shareholders with publicly visible value for their equity
• Start Faces Campaign
Member Acquisition
1,000,000 Shareholders Faces Campaign / $1,850,000 Raiseo (45 days after close of
$150,000 raise, Feb 2017)• Min. $25 / investor • $.09 / share, preferred • Double prior round
valuation
PHASE III PHASE IV
PHASE I PHASE II PHASE III PHASE IV PHASE V
JUNE 2015 JANUARY 2016 Est. APRIL 2017 Est. SEP 2017SEP, 29 2016
PUBLICComplete
Complete
GROWTH / USE OF FUNDS
Go Public: Launch
$150,000 Raise• Rebrand for
#GetYourShare• Get Listed OTC QB
o Provide shopper / shareholders with publicly visible value for their equity
• Start Faces Campaign
Product Expansion
1,000,000 Shareholders Faces Campaign / $1,850,000 Raiseo (45 days after close of
$150,000 raise, Feb 2017)• Min. $25 / investor • $.09 / share, preferred • Double prior round
valuation
Investor Focused Campaigno (Tail end of $1,850,000
campaign, est. Sep. 2017)• Qualify for OTC QX (2
market makers, other requirements)
• Goal: institutional investor interest
Introduce new products
PHASE III PHASE IVMember Acquisition
PHASE V
PHASE I PHASE II PHASE III PHASE IV PHASE V
JUNE 2015 JANUARY 2016 Est. APRIL 2017 Est. SEP 2017SEP, 29 2016
PUBLICComplete
Complete
TRACTION
Revenue ($)0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
New Members Total Members Transactions0
100020003000400050006000700080009000
10000
2015 Year Total Jan 2016 Feb 2016 V Mar 2016
In Q1 2016, we tested various member acquisition strategies to achieve scalable, affordable growth.
®
PRO FORMA OPERATING FORECAST By Membership Level
Users/Members 12,000 50,000 250,000 1,000,000
Est. Date Achieved NOV 2016 APR 2017 JAN 2018 DEC 2019
Annualized Rev.
Gross Margin
Fixed Operating Costs
Annualized Net Profit
Variable Op. Cost
$2,000,000
0
$ 400,000
(260,000)
$ 25,000
(125,000)
$ 75,000
$ 500,000
$ 600,000
$3,500,000 $12,500,000
$ 2,500,000
$ 750,000
$ 950,000
$ 500,000 $ 2,000,000
$ 5,500,000
$ 1,500,000
$ 10,000,000
$50,000,000
Marketing – Non. Acq. 0 $ 150,000 $ 300,000 $ 1,000,000
Tot. User Acq. - Cash $ 250,000 $ 1,000,000 $ 12,500,000 $ 50,000,000
Variable Head Count
Support 0.1 1 5 20
Retailer Relations 0 0 1 4
®
COMPETITION
®
OWNERSHIPCASH BACK SAVINGS EXIT
$960M Sale to Rakuten
$1.7 Billion IPO
$1.5 Billion IPO
$13 Billion IPO
COMPANY
Public as of Sep 2016
Going Public – Reg. A+: SEC QUALIFICATION
INVESTORS HAVE FREELY TRADEABLE STOCK
Price: $.045 / Share
OTC QB listing expected
Create robust market
EXIT / MARKET VALUE STRATEGY
Complete~ 1st Qtr 2017
®
~ 3rd Qtr 2016
Investors receive registered stock, so they may sell whenever they find a suitable buyer. Increasing stock market value is the goal.
Price: $.09 / Share
AS SEEN IN
®
Robert GrosshandlerCEO & Co-founder
Founder, iGive.com – 1997350,000 Members currently
Founder, eComXpo sold – 2008
Founder, Intercastsold – 1995
Co-founder, The SOFTA Groupfounded 1981, 160 employees, sold – 1993
EXECUTIVE TEAM
Sanford SchleicherCTO & Co-founder
CTO – iGive.com – 2008
j2 Global CommunicationsDirector
Co-founder and Chief Architect,Onebox sold – 2000
BS, Computer SciencesUniversity of Illinois
Melinda MooreCMO
CMO, Crowdfunder – 2015
Co-founder, LovingEco sold – 2012
Co-founder, Tuesdaynights2012 – 2016
Top 50 Digital Women in 2015Digital LA
Author, How to Raise Money: The Ultimate Guide to Crowdfunding
BA, PsychologyUCLA
®
ADVISORY BOARD
David CarlickVenture / Co-founder
DoubleClick,
Former CEO Public Company
Michael BrennanReal Estate /
Private Equity,
Former CEO Fortune 500 REIT
Robert Grosshandler847.477.6968rob@iconsumer.comAN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. THE SEC HAS QUALIFIED THAT OFFERING STATEMENT, WHICH ONLY MEANS THAT THE COMPANY MAY MAKE SALES OF THE SECURITIES DESCRIBED BY THE OFFERING STATEMENT. IT DOES NOT MEAN THAT THE SEC HAS APPROVED, PASSED UPON THE MERITS OR PASSED UPON THE ACCURACY OR COMPLETENESS OF THE INFORMATION IN THE OFFERING STATEMENT. YOU MAY OBTAIN A COPY OF THE OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT AThttps://www.iConsumer.com/offeringcircularYOU SHOULD READ THE OFFERING CIRCULAR BEFORE MAKING ANY INVESTMENT.
CONTACT
“We’re here to make a dentin the Universe.”
Steve Jobs
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