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Contests. Deals. Rewards.

The Industry

Contests / Sweepstakes & Deals / Offers

are two of the most popular digital

marketing tactics worldwide used by

companies of all sizes

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The Competition

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• Competition: Sweepstakes / Contests

- Destination sites / platforms (Spriza)

- Social media tools/apps (Woobox, Gleam, Tabsite)

- Marketing Agencies*

• Competition: Deals / Offers

- Destination sites / platforms (Groupon, LivingSocial)

- Social media tools/apps (Woobox, Tabsite)

- Marketing Agencies*

* Potentially, also a partner

The Problems

SWEEPSTAKES / CONTESTS

Problem 1: ValidityValidity of contests/sweepstakes when organized “internally” by

merchants; especially SMEs (i.e. participation process, draw, etc.)

Problem 2: Local MarketingMost sweepstakes platforms are not designed for local businesses

Problem 3: Social media platformsFacebook, Twitter, etc. are not designed for contests/sweepstakes

Facebook no longer allows “Like to Win” contests/sweepstakes

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The Problems

DEALS / OFFERS

Problem 1: Perceived value of product/serviceBig discounts (50-%70% off), without group-buying as a prerequisite

(minimum sales volume), affect perceived value of products/services

Problem 2: Consumers pre-paying full amountPaying $20-$30-$100 for vouchers that may be redeemed weeks later

Problem 3: Merchant paymentsDeal sites collect the money from deals; send cheques / wire money

to merchants several weeks later (in installments)

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123win! Value Proposition

VALUE PROPOSITION TO MERCHANTS:

• Synergistic “dual platform” (Contests & Deals)

• Brand-product awareness / Lead Generation / Sales

• Third-party contest organizer ensures validity

• National or regional/local contests/sweepstakes

• Deal discounts “justified” as part of group-buying

• Offering customers the option to buy or “secure” deals

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123win! Value Proposition

VALUE PROPOSITION TO MEMBERS:

• Free to join, trusted, and secure

• Enter contests for a chance to win fabulous prizes

• No need to be part of social networks to enter contests

• Option to a) “secure/lock” or b) buy deals

• Enjoy premium membership benefits (credits, etc.)

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123win! Differentiation

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CONTESTS: WHAT MAKES US DIFFERENT

• Trusted platform (third-party organizer)

• National as well as local/regional contests

• No need to be part of social networks to enter

DEALS: WHAT MAKES US DIFFERENT

• Secure/lock deal option (on some deals)

• Premium Membership

• Money processing

123win! Deals

SECURE / LOCK DEALS

On some deals, 123win! will enable its Members to pay a

small amount ($2-$10 depending on a deal’s total price) in

order to “secure” / “lock” a deal and pay the rest of the

deal’s amount when the voucher is redeemed at the

Merchant (i.e. 1-3 months later)

BENEFITS

• Consumers: Easier to become “frequent” shoppers

• Merchants: Potentially attract more customers

• 123win!: keeps 100% of amount (deal commission)

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123win! Deals

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PREMIUM MEMBERSHIP

Premium Membership will enable 123win! Members to:

• Gain access to exclusive deals

• Easily buy or secure deals with 1 click

• Get credits / use funds towards deal purchases

Deal Sites: Payments

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PAYMENT PROCESS OF DEAL SITES

(i.e. Groupon, LivingSocial)

Consumer pays Deal site

Deal site sends cheque(s) or bank wire to Merchant*

(revenue-share less cancellations & credit card fees)

* Either within 10-30-60 days after deal ends or as vouchers are redeemed

123win! Deals

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123win! will use PayPal’s

Delayed Chained Payments solution*

and pay Merchants immediately after a

voucher’s cancelation period expires

(i.e. 14-day standard refund policy)

* Link: http://bit.ly/PayPal-AdaptivePayments

123win! Sources of Revenue

• 123win! Contests / Sweepstakes

- Contest set-up fees

- Opt-in Leads (pay-per-lead)

• 123win! Deals / Offers

- Buy deal commission: 10% - 20% of deal sales

- Secure deal commission: $2 - $10 per secured deal

• Premium Membership: $10 & $20 membership levels

• Banner Advertising

• Affiliate Marketing

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123win! Facts & Figures

• Launched contest platform in Greece and Canada

• Over 150 daily entry contests organized

• More than 1,500,000 contest entries

• High member loyalty

• High contest entry frequency

• 20%-25% opt-in rate (lead generation)

• Viral growth / very low acquisition cost

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123win.gr Contests

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123win.ca Contests

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123win.gr Facebook Page

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123win! Member Value

Each Member who joins 123win! adds value

to the company throughout their “lifecycle”.

Value is determined by the following:

- Opt-in (Lead from Contests)

- Buy / Secure Deals

- Ad clicks / actions

- Inviting New Members

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123win! Member Value

$10 - $20

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123win! Use of Proceeds

• Launch deals platform in Greece

• Acquire Greek deals site- 1.2M Euros in sales in 2 years

- 300,000+ vouchers sold

- 200K e-mail subscribers

• Product Development- Integration of acquired deal platform to 123win!

- Mobile app (iPhone & Android)

• Hires- C Level, Business development, Tech / Product development, Customer support

• Marketing / Advertising

• Expansion in the US, UK, India and other markets

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123win! Revenue Projections

Sources of Revenue 2015 2016 2017 2018 2019

Contests $10,000 $50,000 $100,000 $200,000 $250,000

Deals $100,000 $500,000 $1,000,000 $1,500,000 $5,000,000

Membership $10,000 $100,000 $500,000 $2,500,000 $5,000,000

Ads/Affiliate Marketing $1,000 $5,000 $10,000 $25,000 $50,000

Total Revenues: $121,000 $655,000 $1,610,000 $4,225,000 $10,300,000

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123win! Inc.

Head Office

1233 de la Montagne, suite 101Montreal, QuebecH3G 1Z2 Canada

E-mail: info@123win-inc.com

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