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SMRC.mou.addendums

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SMRC LOI/MOU Addendums

SMRC LOI/MOU Addendums

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  • 1. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 1 of 58 Phillip R. Nakata Aaron S. Nakata Scott Bruce JPD Zahr April, 2014 Available on Slideshare: Download copy at http://bit.ly/smrctech Dba SMRC : Addendums SMRC MEMORANDUM OF UNDERSTANDING Changing the Social Web… FOR GOOD Bringing together charities, celebrities, personal and corporate social responsibility, social organizations (media, networks & ‘societies’), multi-player online gaming, social media analytics, social process reengineering services, the dynamics of the social web and the most popular forms of supporting charity, to finance the spectrum of humanitarian causes as a by-invitation-only passive social credit awards & 501(c)3 social impact rating service. Addendums A-J / supplements to SMRC LOI/MOU and/or Partner Terms/Financing: 0: The Market Problems that Social Market Research for Charity Will Solve pg. 3 A: Mission, Articles of Manifesto, SMRC Process – Sponsor- Member Flyers pg 4-8 B: Exec. Summary, 3 yr. income projections, Business Plan, Launch Budget, BIOS pg. 9-16 C: Technical, Business & Stakeholder Overviews & Profiles pg. 17-25 D: Technology – Feature, Function & Value; Application Modules/Interface map pg. 26-32 E: Overview of the On-line Charity Application Space pg. 32-33 F: SMRC Vision and Value pg. 34-36 G: Charity Market Report pg. 37-42 H: Charity & Social Media reference pg. 43-44 I: CSR References/ samples pg. 45-46 J: SMRC’s Go To Market Plan pg. 47-48 K: SMRC’s Behavioral Analytics, Research & Workflow pg. 49-53 L: Everyting you need to know about identity security & privacy pg, 54-58.
  • 2. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 2 of 58 CONFIDENTIAL Notice The information contained in this document represents the current view of Social Market Research for Charity (SMRC) on the issues discussed as of the date of publication. SMRC cannot guarantee the accuracy of any information presented after the date of publication and it should not be interpreted to be a commitment on the part of SMRC. This Memorandum of Understanding is for informational purposes only. SMRC MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS DOCUMENT. It is the responsibility of the recipient to comply with all applicable copyright laws. Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of SMRC. SMRC may have patents, patent applications, trademarks, copyrights, or other intellectual property rights covering subject matter in this document. Except as expressly provided in a written license agreement from SMRC, the furnishing of this document does not give any reader or recipient any license to these patents, trademarks, copyrights, or other intellectual property. Other product and company names mentioned herein may be the trademarks of their respective owners. Copyright © 2011 dba SMRC. All rights reserved. NOTE: Please feel free to contact us by phone or email to arrange an ad-hoc walk-thru demonstration of the latest implementation of SMRC. Contact: Phillip Nakata Chief Business Officer & Founder, SMRC 355 S. 38th Street Boulder, CO 80305 Tel. <720.590.7430> phillip.nakata@socialmarketresearchforcharity.org
  • 3. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 3 of 58 Re: Seed company w/Extreme growth/value potential. Launch@10 MM+ followers; Grow @1 MM+ followers /mo.; $2.6 BB+ social /sponsor research 1stYR, Grow to $149 BB+ in 3 years; 92%+ to charity +rewards The problems /opportunities /mission that SMRC will solve include, but are not limited to: 1. Generosity: 80%+ of people are interested in philanthropy being a part of all transactions or exchanges of any type (including research, the biggest component of the web). SMRC will allow people (everyone) to create donations +equal rewards for their content, and for responding to research, w/o requiring purchase. Creating value from their everyday social content gives everyone a reason to have a charity profile. 2. Social Cognitive Surplus – revealing the hidden patterns and anomalies: People will be able to generate value for themselves, their sponsors, and their charities from every bit of their everyday social content, feedback & sponsor interaction, aggregated over time time to: (a) See the patterns and anomalies of each person’s greatest interests, (b) Enrich / understand their precise relationship ‎‎/influence with others (based on the common themes of favorite interests and dislikes they share), and (c) Find‎new‎material‎they‎each‎“WILL-LIKE”, from any new interests, of each person’s‎anonymous‎social‎doppelgangers (authenticated, trusted strangers). 3. The Most Valuable content: As content and research are the biggest and most valuable assets on the net, developing a system that knows: how many people know about something (from all their interests), as well as how much each of those people want it – will generate the most valuable content in the world (when applied to tens of millions of people). 4. Monetizing from precise matching: Current content monetization strategies do not know precisely what each person 'will-like', nor do they map the number of common related themes of interest that each person shares with each of their friends and followers. As a result, most advertising today is invasive, based on what sponsors think people want, or want them to like. 5. All content and traffic monetization strategies should be founded on documented, un-bias (e.g. no surveys – based only what people say or notice), market profiling and interactive audience research - that is relevant, educational, emotionally engaging and never invasive. 6. Noninvasive: 46%+ of the on-line community hates invasive advertising and rarely responds. Offering 2X + the response, noninvasive 100% personalized promotion (precisely matched to each persons’ interests and self-qualified by each sponsor’s requirements), would incentivize sponsors to not use invasive practices. 7. Most advertising today only generates a small response as people are so inundated with ads that aren’t 100% personalized to each person’s current, qualified interests. 8. Loyalty based on support for each customer’s favorite charity(s) /cause(s): 60%+ of people will change brand loyalty, in exchange for vendors who support their personal favorite charity. 9. Too many charities: It’s not that there aren’t enough people who want to support charity – there are just too many charities that don’t generate real social impact (for the end beneficiaries). 10. A politically-neutral offering, to boost any economy: As corporate social responsibility, or the “people’s self-tax”. 11. This will allow each person, in their own way, to improve society, based on their everyday social interaction with others; and for responding to sponsors offering preview opportunities precisely matching each person’s interests (WILL-LIKES), without any purchase required to receive rewards (Delivered noninvasively as a 100% personalized, on-demand report). SMRC is the most productive, noninvasive, in-depth anonymous market study, monetization and realization of social- emotional patterns, anomalies and social ‎influences ever conceived, based on society’s public social content, and qualified sponsor research - for humanity, our economy and individual self-fulfillment  (A) ‎Launching with 10+ million sponsor followers; (B) Targeting 147 million subscribers within 3 years to generate: (C) $137 BB+ ‎per year ($2 BB+ 1st year) from research for charity +rewards, (D) $11 BB+ in share- holder research revenue and (E) ‎Stimulate $2+ Trillion in sponsor cause marketing research 'conversions' (commerce).‎
  • 4. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 4 of 58 Social Market Research for Charity - www.socialmarketresearchforcharity.org Mission Statement Mission: Bringing together charities, celebrities, personal and corporate social responsibility, social organizations (including multi-player online gaming), social media analytics, social process reengineering services and the dynamics of the social web to finance the spectrum of only productive humanitarian causes as a by-invitation-only "social rewards service model for charity" (A Passive Social Rewards Service & 501(c)3 Social Impact Rating Service creating donations and member rewards for social content, social market/media research, feedback or sales) Goals:  Capture & analyze the web’s everyday social conversation (& persona profiles), to (1) create a ‘social credit’ system, (2) broad/deep collective social wisdom, (3) an economy of charity to (4) finance the spectrum of only productive humanitarian causes as a by-invitation- only social credit-generating web service for charity... while also supporting the market and un- bias value of our most treasured social capital 1. Empowering the social web's "Follower" markets 2. Creating donations and valuable social/tax member rewards 3. Stimulating 200%+ free and honest feedback 4. A 20% minimum increase in loyalty, more and new business for non-501(c)3 sponsors 5. 200%+ in sponsor goodwill reinforced on a daily basis 6. A 100%+ increase in new supporters for each 501(c)3 7. While promoting worthy 501(c)3 charities, w/un-bias profiling & social impact reporting 8. Creating Social Intelligence 9. Offer $0.03/ profile noninvasive personal advertising – the next ‘google’ for advertising INVESTOR CAPITALIZATION RETURN / IRR: From (1) Grants, Donations, and High Interest 1 Year Loans (at Prime +7%), that include, Triple (3X) the value of the monies granted, donated or loaned, as Annual donations (and credit) to the Grant, Donations or Loan Originator’s Favorite 501-c3’s, or at (2) $3, $25 & $100 million investment rounds - SMRC will generate:  $210 million in (pre-tax value, after expenses) revenues:  Use of $2 Million Funding is for: o Marketing (2/3 – to target 15-20 million members, 500+ charities, 1000+ sponsors & go public w/6 months) o 1/3 for the up-scaled cloud based services to retain (as business intelligence) the on-going 2 yrs+ social/emotional web activity history of 20+ million.  Upon Launch, SMRC will be self-supporting; Thereafter, 25% is to be reinvested [Net $55 million/year] as facility - development - resource funds. SMRC INTERNAL RETURN Direct Percentage of 8% processing/mgmt. overhead: (processing, storing, analyzing/reporting, accounting/credit & 2nd services)  Creating the most competitive edge for Charities  7+ million prospective subscribers in the pipeline w/major charities  $2.2 billion for charity & member rewards (based on the social content before research & commerce revenues)  $220 million from Awards of donations & rewards for public good (1/2 issued by sponsors)  $110 million in sponsor donations and sponsor rewards (deductions)  Stimulating $20-40+ billion for the USA economy (at 15-20X the value of charity)  Alternate Funding Opportunity: For the $2M Partner-Investor, w/45% equity in Founder Shares, this will generate a (35%) $606,000 annual dividend, while increasing the market value of your investment by $69 Million per year, if SMRC doesn’t go Public before that.
  • 5. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 5 of 58 SMRC Addendum A (con’t) The SMRC Manifesto: Article I. We hold these truths to be self-evident: that all human beings are essentially good; that we are endowed by our biological and cultural ancestors with certain altruistic instincts; that among these are the predispositions to save those in danger, to help those in need, and to give gifts. Article II. The scientific ground for global human solidarity is universally encoded and unambiguously expressed in the library of our species’ DNA and manifests in the common physiology and functionality that foretoken our common teleology. Article III. Ours is an age of unprecedented surplus. Not only are material productivity and prosperity at historical high- points, an abundance of information is at our fingertips like no other time in memory. Whosoever is inclined may reach forth her hand to claim this abundance, due in large part to the transformative technology of the worldwide web. Increased surplus begets increased charity. Article IV. This unprecedented surplus demands unprecedented transparency. Transparency produces trust. Those who mean no harm have nothing to hide. Article V. Ours is an age of ever-expanding, evermore-comprehensive global ecology and global economy. More than ever today, the fate of each is bound to the fate of all. Increased connectedness engenders evermore- common teleology. Article VI. This unprecedented connectedness requires unprecedented trust. Mutual trust ensures unity and enables free interaction. Article VII. Universal solidarity is grounds for universal democracy. Increasingly, world-citizens are realizing the potential of the worldwide web as an environment where free expression and self-organization can thrive. Our solidarity and surplus, coupled with trust and transparency, afford new opportunities to save, help, and benefit each other. Article VIII. Social Market Research for Charity (SMRC) steps forward to empower this vision of humanity. Our community represents a fundamentally democratic online environment whose policy is mutual trust and full transparency. We channel our world’s unprecedented connectedness into universal solidarity. We transform our world’s surplus into surplus into unprecedented generosity. All is charity.
  • 6. Member creates everyday social content, on any public media1 they authorize. (posts, tweets, likes, feedback, etc.) Creates Custom Search Themes from historical and current social activity, tied to member’s charities. Determining what each member WILL like: SMRC non-invasively analyzes public, historical (2yrs), and current social activity, associated with member’s registered favorite charities. No Identity Revealed. Sponsors in every social topic & keyword theme. (add qualifications**) Monetized for member’s/ host’s charities & rewards as compensation for participation & research. Member’s Opportunity Report - database listing rewarding research game opportunities & **requirements. (only in topics they will like based on what they talk about, and the feedback received.) 25 sponsors/day purchasing @ $0.03/member profile = $0.60/day/member($219/yr.). (after service fee, host benefits., and awards. Hosts receive 4% of invitee’s value for their content & research (see below). Syndicated Social Sponsor’s website or storefront Interactive HTML5 Mobile Video compatible. Justifiable Value for Every Marketing $: Promotes goodwill, loyalty, traffic, brand acceptance, retention & hard behavioral research. Determines opportunities related to member’s Custom Search Themes & then non-invasively (encouraging 2x response from the 46% who never respond) promotes opportunities to: Analyzed by: sentiment linguistics, conversational/media topic, likes/ dislikes (how much and why), related to topical trends across multiple media/ similar members. This creates precise custom themes for every social topic / keyword in each person’s everyday public social & sponsor media. ***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) Inspired by: *All monies in the system are donations w/ trade rewards. All humanitarian 501-c3’s can be registered & receive donations. * Authority website OEM: AdWords / AdSense/ OpenX 4% of the on-going donations’ & rewards’ value of hosted sponsors/members. Minimum of $10.95/year/invitee. Open Source In-line Video alternative to Mobile Flash. Analogies: Amazon or Pandora’s suggestions, on steroids (except in all topics, not just music). **100’s of parameters. More diverse, and accurate than any on the market. 1 Scope: All social media formats are supported.
  • 7. SPONSORSHIP ADVANTAGES:SPONSORSHIP ADVANTAGES:SPONSORSHIP ADVANTAGES: Maximizing market response, while turning your media into a force for social good. Target 100% qualified leads while co-branding with their personal charities* to promote loyalty, research, and response. Optimized by: Conversational Sentiment Analysis, Measured Social Influence, Trends In Social Doppelgangers, Emotion, all the usual suspects, +100’s more. *61% of American’s say they will try a NEW brand if the brand matches their charity. 80% will switch brands. (Cone Inc, 2010.) $0.03 per anonymous lead/research registration. This purchase monetizes target member’s social content, fulfilling part of our membership offer. Comparing SMRC to AdWords:  AdWord’s $1-$40+, invasive, conversion only advertising, with no goodwill, research, loyalty, education or incentives. Vs.  SMRC’s $0.03/highly qualified target, non-invasive, ~$1-2, incrementally rewarding opportunities that promotes (& documents) retention, loyalty, & goodwill.  Social based, sentiment targeting that deter- mine what your market likes & will like, by analyzing multiple parameters, across our member’s correlated social identities (incl. hobby forums); revealing future markets.  Much higher, incentivized conversion rates.  Documented brand education that only costs relative to your target’s proven retention.  Supplementary to all promotions, across all medias (internet, mobile, print, TV, radio, etc.), by simply implementing a logo.  92% of all moneys in SMRC goes to charity (8% service upkeep, unlike AdWord’s ~32%, with no direct social impact). Additional Benefits: Content Monetization (the incentive for social identity correlation):  In order to incentivize up to date analytics from social interaction, SMRC creates donations & rewards, at ‘day rates’ (awarding min $0.60/day, of $0.75 total), for every piece of authorized, anonymous, public social content, for our members, (and sponsors). (No cost. Funded by sponsors acquiring leads for $0.03/profile.) Networking Rewards:  Have a following? Every member you invite awards you 4% of all their total participation value (4% of min. $0.75/day), as donations to your charities, and your deductible rewards. (Awarding a minimum $10.95/yr./invitee. No cost.) Increased Feedback:  Increased feedback to your content (Facebook, Twitter, website, store-front, etc.), incentivized from our altruistic and personally rewarding content monetization. (No cost. Funded by other sponsors purchasing lead targeting, for $0.03/profile.) Crowd-sourced Traffic:  Massive, crowd-sourced traffic to your media, from people looking to leave you feedback, and convert brand stimulating research for impact +rewards. (No cost.) Increased Testimonials & More:  Our selfless incentive system can be applied to acquire non-bias testimonials, product demonstrations, & post purchase reviews; creating brand champions. Mobility:  Completely compatible with all mobile devices, allowing for on-the-go response to in-store demos (hint, hint), billboards, fliers, QR Codes, etc. SMRC provides complete instructions for full mobile enablement. (No cost.) Educate Your Audience w/ Powerful Incentives: SMRC’s “Where’s Waldo/Trivial Pursuit-like” research game stimulates and incrementally rewards your audience for their proven attention and retention to the details of any of your promotions. Why Register Now? Increase Conversions 100%+ with Powerful Audience Incentives: No longer are ads invasive (a nuisance). Now they are opportunities for incremental altruistic, and personal rewards for documented research & promotional attention/recall; opening up new business from the 46% of people who never respond to advertising. If you were awarded ~$1-2 to your favorite local charity (+equal rewards), would you play an engaging attention game? How much more loyal,* & educated would you be to that brand? *85% of USA says ‘a lot more.’ (Cone Inc. 2010) Inspired By: Additional Research Benefits:  Gauge, and document the effectiveness and absorption of your promotions.  Stimulate massive goodwill and loyalty through selfless, powerful rewards for increased attention; incentivizing brand commitment.  Game structure creates competition amongst friends, increasing referrals to your promotions.  Positively benefit your audience by educating them on the products/ services they wanted anyways. Double Your Rewards for Life!: Since the service is currently in development, pre-registered sponsors & members receive double their donations & rewards for life (but hurry, we are launching soon)! Receive Rewards for 2 Yrs. of Past Social Content: Our system functions the best when we can accurately analyze trends in data. Since SMRC compensates everyone for everything they do, it’s only natural we’d reward for this too. Help Enable Billions of Dollars/Year to Charity: SMRC currently has a pre-registration pipeline of 7 million members. Their content revenues (in order to build their opportunities) will produce a minimum of $219/year/member (of $273.75 total) to their favorite charities per member. Registering today will allow you to influence your follower’s value to your supported charities. Think progress. http://www.socialmarketresearchforcharity.org (720) 204 –3569 SMRC User-Member’s: bit.ly/smrcmbr 1 2 3
  • 8. 1.) Discover Your Social Doppelgangers; Explore New Interests. Without revealing anyone’s identity. Are you interested in Ferret Legging a.k.a. stuffing a ferret down your trousers (it’s a real sport, look it up)? Well, you’re not alone: there is some- one else in the world just as unique as you! Look! They also happen to be into competitive Worm Charming too! (it’s real too, trust us.) Who knows? Maybe they might be able to introduce you to a new thing or two. 2.) Utilize Your ‘Counter-Part to Personal Search’; Blow Open Your Existence. We give you your own social media trending A.I. which finds you up to date information on all of your current and discovered interests. For instance, if you are talking about that especially wily marmot at last week- ends showdown, we keep you informed with all the news you’d ever need about taming that furry beast. 3.) Have a Tough Decision to Make? Wouldn’t it be convenient to have your own personal A.I. Avatar which can determine the potential outcomes of your queried social scenarios? How valuable would it be to know, without revealing anyone’s identity, what your friends, and society thought about stuffing rodents down their pants? 4.) Monetizing Your Voice for Humanity (and yourself): In order to create sustainable impact through your “Counterpart to Search,” SMRC monetizes any of (every post, like, share, conversation, upvote, star, etc.) your authorized, anonymous, public social content (from Facebook to hobby forums, and beyond) for your personal social causes, plus the equal amount in trade-able rewards, which are as good as cash*. Imagine taking the revenues from our identity free content market research, and instead of distributing it to special interests and ourselves (like most companies do), we distribute it to you and your causes. Sounds pretty great, doesn’t it**? Heck, maybe you can save some poor ferrets from some suspecting trousers. Man, they have to hate that… Where does the value come from? Please visit http://bit.ly/smrcflyer *The purchase of the ability to promote to you non-invasively, and without revealing your identity, consequently monetizes your social content. 5.) Impact Society With Your Market Response; Help Destroy Invasive Advertising. Imagine a world where advertising isn’t a nuisance, but rather a stimulus for society. Instead of invasive, irrelevant advertising, SMRC uses the same “search*” to find you sponsored offers that are directly related to your interests; non- invasively published separately off page. If you choose to respond, you can create significantly more impact and rewards simply by playing a “where’s Waldo/trivial pursuit- like” research game, which tests, and rewards, your attention to the details of your environment. Rates of Social Monetization: As donations and equal rewards. At $219+/yr. ($0.60/day) minimum from any of your authorized, public social media interaction/content. The more you communicate, the more social value you create. The sky’s the limit here. At $2+ average/instance for perfect response to the research games. At $5/testimonial and/or 5% total purchase value back on optional purchases from SMRC sponsors after answering a Post-Purchase Review. Invite Your Friends, Followers, and Colleagues to Create More Social Impact! 4% of invited follower’s total value** (minimum $10.95/year), while enabling them to monetize their voice for their causes. At $0.438/yr. per invited follower’s invited follower to your impact and rewards. (4% of 4%. Know anyone big?) **Total (100%) minimum value created daily is $0.75/day from content alone, assuming no research participation, and little social interaction. 80% goes towards your causes, with 4% to hosting rewards, and 8% to your gift-able charitable awards to your friend’s causes. Only 8% of total value goes to SMRC for service upkeep. 92% of all revenues go to charity. FIVEFIVEFIVE NO COST MEMBERSHIP BENEFITS:NO COST MEMBERSHIP BENEFITS:NO COST MEMBERSHIP BENEFITS: Saving the world by giving true action and value to your voice.
  • 9. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 9 of 58 Social Market Research for Charity (SMRC) Executive Summary (Cause Marketing the ‘Followers’ markets as a ‘by-invitation- only’ Passive Social Member Awards & 501-C3 Rating Service) In the new business climate of today’s technology, from time to time, an investor/sponsor gets a chance to participate in a paradigm shift in an industry. SMRC is poised to change the world for the better by providing a unique funding vehicle for every qualifying 501-c3 charity. We have developed a means of passive funding for the charities, by empowering (at a minimum $219/yr.) the social market of sponsor 'followers' (10-1000X larger than each sponsor's direct members and supporters), each as a new supporter of five (5) worthy 501- c3's (the latter three typically being local).  Social media trending data (EVERY Tweet, Facebook or blog post, SMS, comment, etc.) is sold to cause marketing of this charity 'follower' market, into a program that matches each party's charity profile (ranging from popular national to the smaller, locally popular 501-c3’s, which have MUCH higher acceptance & loyalty rates) with sponsors wiling to offer:  A 5% donation and equal social credit member rewards with any purchase (or a smaller donation and social credit member rewards for just giving feedback).  An alternately offer, a small donation and rewards for answering a research game of attention and recall (@$0.06-$2)  Rewards for any sponsor interaction, that increase ad penetration with full attention 500%+  Sponsor POS (in store) promotions (as compared to ONLINE ads, that use social media research), offer a 5% donation to any qualified 501-c3 along with social credit member rewards, for purchase; with local, smaller charities being more popular.  Similarly, feedback and testimonials to sampling, in-store trials and demos creates donations & rewards ($1-$10)  Along with a recommended rates of 7-10%+ of the price for purchase related to on-site demonstrations, the combinations of incentives for reviews & testimonials (not requiring purchase) create a powerful incentive to attend  Downstream and ethical 3rd party referrals are supported by 501-c3 social impact rating reports, and through enticing incentives, the service will launch week one with over 4 2 million members. By redirecting the research, CSR (Corporate Social Responsibility) and advertising revenue streams for the benefit of charities, stimulating a 200%+ increase in feedback and a 20% increase in business/membership for each sponsor, this service will generate $2+ billion for the 501(c)3 market, and grow annually thereafter (creating 100%++ increase in funding for all WORTHY 501-c3’s). Financials: SMRC’ financial model will create: a) $0.60 to $1.80 min/day/member for charity and social/financial rewards, from revenues generated of $0.75 to $2.25 min/day/member, for the value from social content (content sales)  $0.75 is created from social content (501(c)3 followers media schedules) – based on 25 of 1000 sponsors acquiring each member's profile at $0.03/profile (compare to market profiles @ $0.10-$0.25 each) and is paid out as follows: o $0.60/day each, to the member's favorite 501(c)3 AND to the member's social/tax credit rewards ($219/yr) o $0.03/day each, to the member's hosts' favorite 501(c)3 AND to the hosts' social/tax credit rewards ($10.95/yr) o $0.06/day to SMRC's social credit award programs ($21.90/yr.) o $0.06/day/member to SMRC service ($21.90/yr.) b) Market (Attention) Research, Reviews, Recommendations and Testimonials (via multiple ad/promotion delivery channels)  Quizzes of attention and recall to online presentations (alternate to purchase at $0.06 - $2)  Reviews and Testimonials to in-store sampling, trials (@ $1-$2) & demonstrations (@ $2-$10)  Using standard SEM/AdSense-like channels (Google, Yahoo, Bing), Social media and alternative Ad delivery channels c) 5% of the value of sponsor participation and/or sales of sponsors’ products and/or services (as more from donations & social credit) - i.e. 5% of all sponsor product/service sales to SMRC members using social market research and media schedules. NOTE: 5% for purchase 'packages' to sponsors - not included in the business projections.  Social credit: good for prizes, games, awards of tax receipts, trade for discounts, or exchange w/for-profits  NOTE: 35% of the revenue value generated as social credit is taxable if the social credit is traded or converted to cash value - thus the donation goes through, but the social credit value is taxable income to the recipient. Markets:
  • 10. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 10 of 58 a) SMRC and SMRC Sponsors invite other sponsors (Celebrities, Charities, Businesses and Social Organizations - media, network & societies). SMRC sponsors invite their members, employees, social followers and other sponsors b) SMRC Sponsors seek to increase the penetration of their promotion with full audience attention 500%+ c) Charities are influenced by sponsors; Sponsors respond to their charities Marketing: includes (1) Sponsor to sponsor, (2) Sponsor to member, (3) Member to member, (4) SMRC to 501(c)3, and (5) SMRC to other sponsors (not 501(c)3s). Marketing activity pre-registration, launch, and on-going promotions will be focused on the simple but powerful member to member message:  Message: (3 cents per follower per day for life – for charity and rewards; the ultimate social rewards program; SMRC offers Social credit for content/feedback, networking, purchases, awards - good for prizes, games, awards of tax receipts, trade for discounts, or exchange w/for-profits o SMRC creating the greatest social impact by promoting 501(c)3’s (focus: on smaller, more social 501-c3, , local to both supporters & SMRC sponsors, creating the biggest social impact) o Social credit can be exchanged for prizes, games, awards of tax receipts, trade for discounts, or exchanged with for profit companies.  Sponsors: Sponsors receive donations and social/tax credit for their social content and feedback. They also receive 5% of the on-going social credit generated by new members who join based on their invitation; other benefits include (1) the most valuable social market game of attention and recall and (2) a SMRC assimilation strategy (validating a prospective sponsor’s charity’s social impact rating). Services (Operations):  Creating/managing donations and social credit for: o Social content and feedback creating charity- media schedules and social intelligence reports o Networking (at 5% on-going to each member's host) o Market Research quizzes of attention & Recall o Reviews and Testimonials to coupons for sampling, in-store trials and on-site demonstrations o Purchases (donations and social credit w/all sponsored participation)- i.e. effective discounts on everyday items o Awards – i.e. recognition for volunteering, events  Administration of social media and charity profiles  Redemption/exchange of social credit points (prizes, events/contests, awards incl. tax receipts)  501(c)3 mission profiling and social impact rating service  Free Access to charity-media schedules of each sponsor's members  Cause Marketing (with social credit) to the charity ‘follower’ market (60-80%+ from non-501(c)3 sponsors): o Program of media schedules and "donation & social credit" packages o Proven 20%+ increase in business (more and new) o Average 5% increase in margin offsetting 5% CSR expense for donations & social credit 'package')  Social Intelligence reports (what people are saying)  The most powerful implementation of "Goodwill" o Points, Follower's points continuously updated, Sponsor/Host name displayed on taskbar  Free access & intercommunications between all users  AI Avatars tapping into SMRC "social intelligence" systems and external search Development:  Best Practices implementation of Drupal 7 with PostgreSQL on cloud servers, internationalized (World's leading Open Source Content Management specialized in supporting social medias)  Sponsor and member profiling (Social Media and Charity profiles)  501(c)3 mission profiling and social impact rating reports  Passive social credit award service (content, networking, purchases, awards)  Market packaging: Followers of charity media schedule(s) and (donations & social credit) bonus 'packages'  SMRC taskbar, administration and redemption/exchange pages  Social Intelligence reports (what people are saying)  Free access and intercommunications between all users  Artificial Intelligence Avatars tapping into SMRC "social intelligence" systems and external search Management:  Former leading IBM Chief Technology Officer (and 1st report to IBM Intellectual Capital); SME in mobile, web, 2.0-4.0, Enterprise, commerce, wireless & social technologies and business strategy, planning and management.  A team of trained promoting ‘hosts’ who find offering donations and social credit to their clients creates a significant brand (competitive) advantage, while providing clients recurring donations for their social content.
  • 11. B C D E F G H I J K L M N O P Q R S T U 2 Social Market Research for Charity ­ Income (and Cash Flow) Statement Projections ­ Year One (3 month build, first 9 months of Revenues, then 2nd year by quarters, & third year summary ) 3 All cells have formulas except for those in blue 4 5 Entities To Date Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12 Yr 2 Q1 Y2 Q2 Y2 Q3 Y2 Q4 Yr3 6 Members 7,000,000 7,500,000 8,000,000 9,000,000 10,000,000 11,000,000 12,000,000 13,000,000 14,000,000 15,000,000 16,000,000 17,000,000 18,000,000 30,000,000 42,000,000 54,000,000 66,000,000 182,000,000 7 Sponsors (incl. charities) 12 100 250 400 500 800 900 1,000 1,100 1,200 1,300 1,400 1,500 2,700 3,900 5,100 6,300 15,900 8 Charities 8 150 275 350 425 500 575 650 725 800 875 950 1,025 1,925 2,825 3,725 4,625 11,825 9 SMRC Staff 8 20 23 26 29 32 35 38 41 44 47 50 53 75 115 160 200 400 10 11 Income: Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12 Yr 2 Q1 Y2 Q2 Y2 Q3 Y2 Q4 Yr3 12 Content Sales $0 $0 $0 $75,750,000 $166,815,000 $272,700,000 $295,425,000 $318,150,000 $340,875,000 $363,600,000 $386,325,000 $409,050,000 $2,047,275,000 $2,866,185,000 $3,685,095,000 $4,504,005,000 $49,680,540,000 13 Research Income $0 $0 $0 $75,750,000 $166,815,000 $272,700,000 $295,425,000 $318,150,000 $340,875,000 $363,600,000 $386,325,000 $409,050,000 $2,047,275,000 $2,866,185,000 $3,685,095,000 $4,504,005,000 $49,680,540,000 14 Commerce Research Income at 5% of purchases $0 $0 $0 $75,750,000 $166,815,000 $272,700,000 $295,425,000 $318,150,000 $340,875,000 $363,600,000 $386,325,000 $409,050,000 $2,047,275,000 $2,866,185,000 $3,685,095,000 $4,504,005,000 $49,680,540,000 15 Professional Services ­ Cause Marketing, web & Mobile Technologies $20,000 $50,000 $80,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 $1,200,000 $1,200,000 $1,200,000 $1,200,000 $9,600,000 16 Research Income Sub­Total $20,000 $50,000 $80,000 $227,350,000 $500,545,000 $818,200,000 $886,375,000 $954,550,000 $1,022,725,000 $1,090,900,000 $1,159,075,000 $1,227,250,000 $6,143,025,000 $8,599,755,000 $11,056,485,000 $13,513,215,000 $149,051,220,000 17 Investment Income $666,666 $666,666 $666,666 $333,333 $333,333 $333,333 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 18 Gross Income Sub­Total $686,666 $716,666 $746,666 $227,683,333 $500,878,333 $818,533,333 $886,375,000 $954,550,000 $1,022,725,000 $1,090,900,000 $1,159,075,000 $1,227,250,000 $6,143,025,000 $8,599,755,000 $11,056,485,000 $13,513,215,000 $149,051,220,000 19 2021 22 23 24 25 26 Cost of Goods Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12 Yr 2 Q1 Y2 Q2 Y2 Q3 Y2 Q4 Yr3 27 Donations & Rewards ­ 80% of content, research, commerce $0 $0 $0 $181,800,000 $400,356,000 $654,480,000 $709,020,000 $763,560,000 $818,100,000 $872,640,000 $927,180,000 $981,720,000 $4,913,460,000 $6,878,844,000 $8,844,228,000 $10,809,612,000 $119,233,296,000 28 Donations & Rewards ­ 4% of content, research, commerce to follower or sponsor's host $0 $0 $0 $9,090,000 $20,017,800 $32,724,000 $35,451,000 $38,178,000 $40,905,000 $43,632,000 $46,359,000 $49,086,000 $245,673,000 $343,942,200 $442,211,400 $540,480,600 $5,961,664,800 29 Donations & Rewards ­ 4% of content, research, commerce to Awards Program by Sponsors $0 $0 $0 $9,090,000 $20,017,800 $32,724,000 $35,451,000 $38,178,000 $40,905,000 $43,632,000 $46,359,000 $49,086,000 $245,673,000 $343,942,200 $442,211,400 $540,480,600 $5,961,664,800 30 Donations & Rewards ­ 4% of content, research, commerce to Awards Program by SMRC $0 $0 $0 $9,090,000 $20,017,800 $32,724,000 $35,451,000 $38,178,000 $40,905,000 $43,632,000 $46,359,000 $49,086,000 $245,673,000 $343,942,200 $442,211,400 $540,480,600 $5,961,664,800 31 32 Pre­Launch Technical Development $222,222 $222,222 $222,222 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 33 34 Computers for Development ­ lease at $300 per month/per ($3,600) ($3,600) ($3,600) $4,200 $5,100 $6,000 $6,300 $6,600 $6,900 $7,200 $7,500 $7,500 $39,600 $56,700 $73,800 $90,000 $720,000 35 Data storage (at total of 10 mgb per person per year): Cloud ($125,000) ($133,333) ($150,000) $166,667 $183,333 $200,000 $216,667 $233,333 $250,000 $266,667 $283,333 $300,000 $1,500,000 $2,100,000 $2,700,000 $3,300,000 $36,400,000 36 Data bandwidth Costs ($25,000) ($26,666) ($30,000) $33,333 $36,667 $40,000 $43,333 $46,667 $50,000 $53,333 $56,667 $60,000 $300,000 $420,000 $540,000 $660,000 $7,280,000 37 Data Storage Acquisition cost for Reports (commerce & monthly) ($125,000) ($133,333) ($150,000) $166,667 $183,333 $200,000 $216,667 $233,333 $250,000 $266,667 $283,333 $300,000 $1,500,000 $2,100,000 $2,700,000 $3,300,000 $36,400,000 38 Technical Development (on­going related to revenue streams) / avg. $7,085 / mo./dev. $0 $0 ($35,425) $49,595 $63,765 $70,850 $70,850 $70,850 $70,850 $70,850 $70,850 $70,850 $361,335 $510,120 $680,160 $850,200 $6,801,600 39 Support Services (on­going related to revenue streams) avg $5,415/mo./person $0 $0 ($37,912) $37,905 $43,320 $54,150 $59,565 $64,980 $70,395 $75,810 $81,225 $81,240 $438,615 $633,555 $812,250 $974,700 $7,797,600 40 Employee Benefit Program ­ at 33% of salaries $0 ($24,201) $29,164 $35,691 $41,663 $43,467 $45,272 $47,077 $48,882 $50,687 $50,692 $266,623 $381,187 $497,420 $608,239 $4,865,913 41 Total SMRC Manpower related to on­going COG ­ Dev:Support Ratio 5:7 7:7 9:8 10:10 10:11 10:12 10:13 10:14 10:15 10:15 17:27 24:39 32:50 40:60 80:120 42 43 Gross COG Sub­Total $222,222 $222,222 $222,222 $209,557,530 $460,960,610 $753,264,663 $816,029,849 $878,795,035 $941,560,222 $1,004,325,408 $1,067,090,595 $1,129,848,282 $5,654,885,173 $7,916,872,162 $10,178,865,830 $12,440,836,939 $137,218,555,513 44 45 46 47 Operating Costs Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12 Yr 2 Q1 Y2 Q2 Y2 Q3 Y2 Q4 Yr3 48 Pre­Launch Marketing Development $444,444 $444,444 $444,444 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 49 Laptop Computers for Mktg on lease at $200/mo/person ($2,000) ($3,400) ($5,000) $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $30,000 $45,000 $60,000 $72,000 $576,000 50 Marketing Staff Budget ($83,333) ($141,666) ($208,333) $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $1,250,000 $1,875,000 $2,500,000 $3,000,000 $24,000,000 51 Marketing Expenses ($166,000) ($280,000) ($410,000) $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $500,000 $2,500,000 $3,750,000 $5,000,000 $6,000,000 $48,000,000 52 Marketing Commissions (if receiving a salary or retainer) ($0) ($0) ($0) $360,000 $396,000 $432,000 $468,000 $504,000 $540,000 $576,000 $612,000 $648,000 $3,240,000 $4,536,000 $5,832,000 $7,128,000 $12,960,000 53 Legal & Financial ($10,000) $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $20,000 $240,000 $240,000 $240,000 $240,000 $1,920,000 54 Company Benefits ($25,000) ($42,500) ($62,500) $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $75,000 $375,000 $562,500 $750,000 $900,000 $7,200,000 55 Office Rent ($0) ($10,000) ($10,000) $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $160,000 $160,000 $160,000 $160,000 $1,280,000 56 Phones and Utilities ($0) ($5,000) ($5,000) $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $80,000 $80,000 $80,000 $80,000 $640,000 57 Total SMRC ­ Admin and Mktg. Manpower 10 17 25 30 30 30 30 30 30 30 30 30 50 75 100 120 240 58 59 Gross Operating Costs Sub­Total $444,444 $444,444 $444,444 $1,226,000 $1,262,000 $1,298,000 $1,334,000 $1,370,000 $1,406,000 $1,442,000 $1,478,000 $1,514,000 $7,875,000 $11,248,500 $14,622,000 $17,580,000 $96,576,000 60 61 62 Launch 63 Month1 Month2 Month3 Month4 Month5 Month6 Month7 Month8 Month9 Month10 Month11 Month12 64 Cost Totals COG and Operating Costs $666,666 $666,666 $666,666 $210,783,530 $462,222,610 $754,562,662 $817,363,849 $880,165,035 $942,966,222 $1,005,767,408 $1,068,568,595 $1,131,362,282 $5,662,760,173 $7,928,120,662 $10,193,487,830 $12,458,416,939 $137,315,131,513 65 Pre­Tax Profit and Cash Flow Gross Profit (income ­ costs) $20,000 $50,000 $80,000 $16,899,803 $38,655,723 $63,970,671 $69,011,151 $74,384,965 $79,758,778 $85,132,592 $90,506,405 $95,887,718 $480,264,827 $671,634,338 $862,997,170 $1,054,798,061 $11,736,088,487 66 Cash Flow CashFlow 686,666 716,666 746,666 227,683,333 500,878,333 818,533,333 886,375,000 954,550,000 1,022,725,000 1,090,900,000 1,159,075,000 1,227,250,000 6,143,025,000 8,599,755,000 11,056,485,000 13,513,215,000 149,051,220,000 67 68 69 70 71 72 NOTE1: The average value (in donations w/rewards) per social content asset per person per day is $0.01 ­ $0.02 (at 30­60 pieces per day). The values(as donations w/rewards) modeled for [1] sponsored research quizzes, [2] post­purchase reviews & [3] user testimonials, at the same rate (per day, month or year) as for each person's everyday daily social content (generated by the cause marketing sponsors acquiring the content @ $0.03 per anonymous profile, while registering their opportunity to generate a minimum of $0.75 total [$0.60 for the mmber] per day per member in value) are EXTREMELY CONSERVATIVE. The contribution from the sponsored rewarding research opportunities should be much greater than for the content. NOTE2: A Large pecentage of the revenues generated from social content and the rewarding sponsored research is TOTALLLY NEW BUSINESS ­ e.g ­ the 46% of the on­line population that normally never responds to classical invasive 'advertising'. The next largest audiences includes everyone who didn't think they could afford to donate (ex: public radio fans), as well as everyone who wants to know the social impact of their contributions. NOTE3: SMRC creates a paradigm shift for the advertising industry ­ turning the perception of 'advertising' into 'personal opportunity' (for generating social good with no purchase required), while turning anyone into a philanthropist (based on sharing their content and respoonding to sponsor's research), interacting with sponsors who share the same social/philanthropic profiles as each member. The three strategic elements of SMRC's offering are (1) technology that accurately assesses the emotional character of social content, (2) the creation of a charity profile for every person for the value of their everyday social content, and (3) the enablement of interactive mobile video ­ turning cellphones into the new social portals for social good. With SMRC, every sponsored mobile and web application, generates donations with rewards for usage that includes feedback. Social Market Research for Charity's Growth, Income, Cost of Goods and Operating Cost Models NOTE: The greyed out sections above represent either placeholder references to human resource allocations in the launch budget, or data/content cost calculations for what it would cost if the cloud storage services were "live" based on the number of members. NOTE: The greyed out sections above represent placeholder human resource allocations or other sub­itemization of the pre­launch budget. NOTE: Because we don't have upfront costs for the content, SMRC's cash flow is the same as SMRC's Gross Income
  • 12. 73 Growth & Income 74 75 Cost of Goods 76 77 Operating Costs 78 79 80 Reference A copy of the Excel Spreadsheet is located at http://www.socialmarketresearchforcharity.org/offer/smrc.incomespreadsheet.year1.xls 81 Year 1: From content (day rates) and rewarding research offers (min. same rate), based on (1) a 3 month pre­launch (marketing & development), (2) revenue escalation during the first 3 months after launch ($0.20 ­ $0.60/day each to member of $0.25 ­ $0.50 ­ $0.75 per day generated from member's content & research), (3) 10 million people & 500 sponsors to start, (4) growing at a minimum rate of 1 million more members and 75 new sponsors per month initially from (a) a SMRC partner's call center (serving as a special sponsor, co­owned by our major partners so all marketing expenses are absorbed by that sponsor in return for the on­going benefits of being a SMRC host, and (b) After the first 3 months following launch, reducing the partner call center (above) by 50%, with new sponsors being 'invited' by SMRC's base of growing sponsors. SMRC can make these projections, as our member profiles to start, will include 2+ years of activity records per person. Year 2 and 3: > Year 2: Growth rate of 4 Millions more members per month, and 400 more sponsors per month, and 300 more charities per month, projected by quarter > Year 3: Growth rate of 8 Million more members per month, and 800 more sponsors per month, and 600 more charities per month, projected by year > NOTE: SMRC is projected to go Public, year 1­3, but by the end of the third year, it will achieve market saturation. Unfriendly Competition is eliminated by creating an offering, which makes it disadvantageous to be an unfriendly competitor, as compared to an external business partner (sharing the market). Investments: over the first six months (3 month pre­launch To 3 months after launch), $3 Million ($2 million over 3 month pre­launch, and $1 during 3 month post­launch) Pre­launch Technical Development (at 1/4 to 1/3 of 3 month launch budget) ­ or $166,666 to $222,222 (budget) per month Pre­launch Marketing Development (at 2/3 ­ 3/4 of 3 month launch budget) ­ or $444,444 (budget) to $500,000 per month Data Storage (Cloud based, 10 Mgb per person per year, all coded data; $1­2 M per year per 10 million members ­ or $0.008333 ­ $0.016666 per month per member) >>> Main costs of research revenues: 80% of revenues to sponsor and follower donations and rewards 4% to follower or sponsor's host 4% to social awards programs by sponsors 4% to social awards programs by SMRC promoters 8% to SMRC business and technology services (INDIRECTLY presented as Revenues before Gross Profits) > Data Acquisition [for reports] Costs (returning only aggegate summaries by charity) for rewarding research registration reports; $2 to $5 M per year per 10 million members ­ or $0.016666 to $0.041666 per member per month ­ cost start after launch. > On­going Technical Development ­ at an average rate of $7085 per month per developer (to equate to a target rate of $0.15 per member per year), 5 people growing to staff of 10 in first year, budget starts after launch. > On­going Support (directly related to marketing rewarding services) ­ at an average rate of $5415 per month per support personnel (to equate to a target rate of $0.15 per member per year), 7 people to start, growing to 15 in first year. > Employee benefits to equate to a 33% cost of salaries.74:74 NOTE: 95% of all marketing is focused on identifying, contacting and registering new sponsors (partner or other sponsors as hosts), and/or registering sponsor's rewarding research offers, and/or giving out 4% of all rewards to charity. Cost Categories: > Laptop Computers for SMRC distinguished promoters/co­founders > Marketing staff budget at $100K per rep average ­ starting with 10, growing to 25 > Marketing Expenses (supporting partner & sponsor marketing and services) > Marketing commissions (20% of standard sponsor benefits if on salary) > Legal and Financials > office rent: 2 offices at $5k each per month > phones & utiliites: at half the office rent rate > Employee benefits to equate to a 30% cost of salaries.
  • 13. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 13 of 58 SMRC Business Plan – Marketing, Operations, Development, Financials/Budget and Management SMRC Marketing:  15 full-time startup SMRC promoters to contact 6000 sponsors in 3 months/ target 1000 to start; 50% as celebrity, business & social organization sponsors for cause marketing. All Major Celebrity, Charity, Business and Social organization sub- classes identified, and assigned  SMRC's Brand of Cause Marketing: o Media Schedules free to each charities on their followers, or at $0.03 per profile to other sponsors - for Use ONLY in matching offers to the charity's extended follower base for that charity o Quizzes and Feedback questions per program at $0.10-$10 per response (not pre-paid); Form as automated codes for online, coupons for in- store/POS feedback and/or sales o Purchase integration as coded $0 cost entry with receipts and/or SMRC marketing coded coupons  Creating the most valuable social market research (penetration of the promotion with the guarantee of the full attention of the audience – via a game- like, no-cheating interface of questions in the style of “Trivial Pursuit”  SMRC’s Sponsor Assimilation Strategy: o Promoting invitations through sponsor (influencing the member’s initial charity profile) along with the on-going 5% of their rewards o Assimilating sponsors via a due diligence process that includes:  Qualifying sponsors based on their follower number and charities  Qualifying/verifying charities-sponsor relations, initial Social Impact rating, Charity follower numbers, Alternative sponsors/celebrities and projections followed by reference call to original prospective sponsor or celebrities  Leveraged sponsor follow-up call with all of sponsor’s interested parties  Current prospective sponsors ready to begin pre-registration: St. Jude Hospital, Arts for LA Ctr., Military chaplains, NFL, US Green chamber of Commerce, Booster Clubs of America, Boys & Girls Clubs of America, .... to name a few  Target 10+ million members to start; each with 1.5 years of historical social content/schedules (from original projection of 2 million to start)  To grow to 4 extended teams of 6 SMRC extended service reps promoting new sponsors and creating social impact rating reports SMRC Operations:  Monitoring social member reward and donation assignments from (a) everyday social content and feedback, (b) inviting others to register as their host, (c) social and syndicated media quizzes and/or purchase, (d) in-store feedback and/or purchase and (e) Awards by SMRC promoters and sponsors in recognition/incentive of worthy public service/contribution/potential  Developing 501-C3 social impact rating reports on all 501-C3; supporting adjustments for small charities reflecting fixed overhead costs for all sizes in any class and industry.  Scanning all members' profile every few minutes for member updates (new or feedback) in social / interactive-syndicated media AND all members similar social activity profiles that have that member as their host - assigning social credit member reward (and related donations) for each piece of new or updated social content  Quizzes and opinion Feedback for attention to online interactive presentations, sampling, and demonstrations; At recommended standards or: o Value of $______ for quizzes and online feedback o Value of $______ for sampling o Value of $______ for demonstration  Managing additional (95% automated) assignment of social member rewards and donations to each member's favorite charities for ( a. Purchases (member or new, regular or demo), b. Inviting others, or c. From awards of social member rewards in recognition of public service impact, At the recommended rates or: o Value of $______ per specific instance (code) o via either automatic coded process assignment or codes or coupons  All donations associated with SMRC social member rewards are deposited into a charitable trusts' sub- accounts, where all charities receiving those donations become authorized administrators of the monies deposited for their 501-C3. There is no charge for this service that represents 80% of the
  • 14. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 14 of 58 value of the member's social credit (the balance at 4% to the member's host, 8% to social awards & 8% to SMRC)  Generating anonymous member (to member) social media and sponsor market research that funds charity and social member rewards, while maintaining invaluable free social market research (exposing only what people are talking about)  With only minimal interface requirements, best practice design, an enterprise class DB and the world's leading Open Source content management service specializing in all social mediums, an on- going maintenance and development technical staff of 5-7 members. Have teams of out-sourced, off- shore programming teams in addition to Aaron Nakata, SMRC's VP of Technology  Managing the SMRC Sponsor Assimilation Strategy: o Pre-Assessing prospective partner’s social profile  Followers, Sponsor’s favorite charities and Business-Social initiatives for SMRC social market research, reviews/testimonials or ecommerce  Sponsor’s charities: o Relationship o Statements for SMRC’s Social Impact Rating Reports o Follower numbers of charity o Other Celebrity or other sponsors for each charity o Projections of charity’s realistic potential o Request reference call to initial prospective sponsor or alternate celebrity sponsor  Contact prospective sponsor (if the sponsors does not contact 1st ) o Sponsor assimilation from findings of pre-assessment above Development & Support:  Technical and Infrastructure: All design completed; Pilots on similar designs; 1/3 of market launch budget is implement object/service coding for social credit assignment, taskbar, edit for charity and social media profiles, ecommerce function of SMRC redemption/exchange pages and QA stress testing. To be deployed on Level 3 Cloud services.  SMRC Marketing Feedback codes integrate (A) the assignment of SMRC member rewards (recommended value or open at $_______), (B) assigned to the member's general charity profile, (C) responding to specific (custom) sponsor offerings, (D) each with an associated product or service 'Quizzes' that validates attention and complete readership / feedback and the emotional reception of the member  SMRC Donations for purchase codes: o For ONLINE purchases integrate offers related to a. Specific classes or product/service specifics with b. A donation at the recommended rates or by exception at $____ per instance, to c. A specific 501-C3 charity, named ______________. targeted for members with that charity as one of the favorites in their charity profile. o For IN-STORE purchases integrate offers related to a. RECOMMENDED POLICY GUIDELINES or product/service specifics with b. A donation at the recommended rates or by exception at $____ per instance, to c. The member's GENERAL 501-C3 charity profile. SMRC Financials:  Pre-Registration generates an average 2 year history of social activity for each member. At 10 million such histories this makes the minimal cost, social media schedules by charity of immediate value for generating media research (for only sponsors making offers matching a member's favorite charities) -- Day ONE of SMRC's market launch  Per 10 million members and 500 celebrity, business, social organization and charity sponsors (1/2 - 2/3 as non-501-c3 sponsors) that will generate 1st year, before accounting for charity incentivized cause marketing:  Per 10 million members that will generate 1st yr.: o $2.19 Billion for the 501-c3 industry and the same in social member rewards; Stimulating/incentivizing o $20-$40 Billion for the US Economy, along with o $110 million for SMRC sponsors, as donations to the sponsor's favorite charities and sponsor member rewards o $220 million in awarded social member rewards (by SMRC and SMRC Sponsors) and $220 million for SMRC's member rewards management and 501-c3 rating service
  • 15. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 15 of 58  Up from our original estimates to launch with 2 million members, current prospective sponsor interest is seeking to pre-register 6 million of their followers. Current sponsors include some of the most popular children's medicine, youth clubs, sports, social and religious 501-c3's as well as supporting the classical 'arts' (music, film, etc.).  Seeking a minimum $800K, $350 for marketing to launch, $150K for completion of technical infrastructure, stress testing, production, infrastructure, extreme storage and bandwidth, full dedicated multi-domain service for 3-5 dedicated IPs, and $300 for accelerated marketing, start-up social credit for first two weeks, and shell corporation acquisition.  Seeking up to $2 million (in exchange for 45% of SMRC’s Executive (founder’s) shares. The increased budget is for: o An escalated marketing program to double the initial number of sponsors, charities and members to 15-20 million members to start, 1000 plus sponsors and 1000 plus charities o Funds and Infrastructure to go Public as early as 6 months o Increased hardware and software facilitation o Overhead to manage the re-investment of $55 million first year for facilities, development and resource investments Launch Budget: Architecture: $416,000 Subscriptions processing systems Rewards tracking systems Activity & gaming point systems SMRC profile development / content tracking Hosting/member donation entry/logging System multi-server XML synchronization VirtuALLY User Interfaces/Mobile Apps Labor (4 Mo. X 25 people, 2/3:mktg) $804,000 Phillip Nakata - information systems architect Aaron Nakata - gaming/coding liaison TBD - human systems architect Joel Doerfel - charity/celebrity liaison TBD - presentation guru/ head maverick Promotion: $227,500 Communications Travel & Lodging Presentation Materials (hardware) Events Co-Sponsorship Penny Program (See Addendum X) $209,625 g₁ = i₀ * 18.28% g₂ = g₁ * 1.618 g₃ = g₂ * 1.618 g₄ = g₃ * 1.618 Graphic Design $95,000 www.christianknopf.de/index.php http://www.schematic.com/# Branding $95,875 Registrations & Trademarking Celebrity Affiliations/Associations Philanthropic Affiliations/Associations Viral Content Legal & Miscellany $152,000 Insurance Legal Miscellany Totals: $2,000,000
  • 16. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 16 of 58 Founder BIOS:  Phillip Nakata is SMRC’s Chief Business Officer and our Digital Social Systems Architect. Phil is/was a Managing Partner of Strategic Rating, Inc (SRI), a strategic business planning and market- development firm that implements world-changing business, technology and social-intelligence applications and programs—including sales & marketing automation, business process re- engineering, eBusiness & best practices frameworks and green technologies. CV HERE or at linkedin.com  Aaron Nakata is SMRC’s Chief Technology Officer, in charge of Human systems & game design, and is our Chief Coder. Aaron is an up-and-coming coding phenom and has earned highest respect amongst the gaming development and open-source coding communities to which he is a regular contributor. Aaron’s long-standing interest in learning and interacting through gaming and social metaphors and models has evolved into a keen understanding of object-oriented thought- and behavior-patterns. For details see his bios HERE  Scott Bruce is SMRC prospective CEO, while actively holding 2 Vice President roles, one with Institutional Energy Products and the other with Greenwave Technology, which was how Scott met Phil two years ago – while introducing an earlier version of SMRC to a dozen local charities centered around San Diego CA.  Joel Doerfel is SMRC’s Chief Celebrity Liaison. An analyst, visionary and communicator of the highest caliber, Joel has taught university-level courses in Business Ethics, Philosophy, Comparative Mythology, Corporate Social Responsibility and Logics for over ten years. Management & Promoter BIOS:  Chris Shea: Semi-ProAM Disc Golf Professional Promoter with family history in the Arts and Philanthropy. Chris has been associated with Aaron and Phil Nakata since 2ndQ 2009, related to SGS360, the social media project to save the Rain Forests of Indonesia  Clem Palmer: Association to Phil: 2.5 years; 25 year developer of Energy and social initiative programs (including ‘Save Our Canopy’ and a consortium of charities supporting injured / disabled professional sports players)  J.P. Zahr: Association to Phil: 2 years; Developer of content aggregation, publication, industry topic profiling and advertising services; Former market developer: green surveys and Scan-My-Food (a major IPhone app linked to analysis of additives to health)  Paul Hindman: Paul Hindman is an active social advocate and is a contributing editor to the Organization. He holds his Master of Fine Arts from the University of Iowa. He is a published author, whose most successful works are his children’s books.  Lance Woody: Musician and Spiritual/Christian Consultant, seeking to become a semi ProAM Disc Golf promoter.  Alex Berryhill: Musician, Music Recording Industry Promotions Consultant. Alex believes that music, and even art in general is the one human commodity that will never depreciate. As long as there is life, there will be creativity in this world.  Brandon Bos: Association to Phil: 2 years; Seattle Green Energy and Talent Consultant  Robert Storch: Developer of social/business application and content publication services  Bryan Graves: Developer of free social/religious content management services  Kendrick Coulter: Independent “Green” consultant promoting SMRC-style social reward programs as the incentive to bring the most productive green technologies to mass market adoption (as Donations to Local Charity & Green Technology, along with valuable deductibles – for his customer’s everyday social content, sponsor’s market attention research and/or double bonus rewards for commerce)
  • 17. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 17 of 58 SMRC Addendum C: Extended Technical Overview  Business & Social Technological Expertise and Qualifications  Infrastructure Technologies  Social Process and Management Science Technologies  Business and Social Technologies Expertise & Qualifications  Technologies – Feature, Function & Value  Subscriber Profiles (for Behavioral Content Analysis)  Overview of the SMRC Experience: Subscriber - Entrance and Experiences 1. Business & Social Technological Expertise and Qualifications: The SMRC executive business and social technology team has the following core competencies. Our broad experience in these overlapping technological domains will allow us to design, develop and rapidly prototype the SMRC social networking infrastructure and API  Social Media, Social Networking  Internet Marketing & SEO  Artificial Intelligence Systems  Configurator Technology (Blending AI, Logic and Decision Sciences)  Cognition, Intellect, Personality Testing and Design  Learning Management Systems  Collective & Predictive Social Intelligence and Analytics  Open Source Development  High Performance Computing Design  Software Development Life Cycle Design & Strategy  Distributed Computing Benchmarking and Optimization  Expert Systems (Integrated logic, analysis and recommendations)  Java, PHP, XML (Platform Independent)  Single Sign-on Development  General Purpose GPU Cluster Design  Services oriented architecture and computing  Multi-media, 3D and Presentation Services  Indexing (spidering, ant-agents and worms) and Taxonomy  Inter-Application Messaging and Queuing Services  Security - from objects to borders  API development  Project Management Best Practices and Rapid Prototyping  AJAX  Object-oriented databases  Common Services  Cloud Computing and Cloud Archival Services  Enterprise (integrated components, services and objects) Architecture  Application Service Architecture  Procurement through distribution and Logistics  Virtualization and Virtualized Computing Frameworks  Social Analytics (emotion and influence plus deep profiling)  Text/Data Mining/Warehousing  Business Intelligence  NLP (natural language/linguistics processing)  Internationalization  Intellectual Capital  Re-Engineering  Pervasive (Wireless + Hardware and Sensory- Interactive)  Bluetooth & RFID development (warehousing applications, security, avatar marketing)  Modeling and Decision Science  System Analysis and Quality Assurance (Impact and Recommendation Reports) 2. SMRC Social Content Infrastructure – High Speed, secure, scalable, best practice based, dynamic social monitoring The prototype working model represents roughly 3,000 man-hours developing transferable software assets, along with another 2,000 hours of re-design, valued at $325,000 – $400,000, based on a net cost of roughly $125,000, includingbutnot limitedto:
  • 18. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 18 of 58 a. Systemupgradestoinfrastructure: I. PostgreSQLasafasterandscalableobjectorienteddatabasevs.MySQL II. The development of a social media monetization framework with psychometrically-verified elementsofgamemechanicsandatestedcompetitionmodel. III. Virtualized,distribuedoperating infrastructure/hardware,enterpriseapp,e.gClouddesign b. A custom content, research & networking monetization & redemption system extending DRUPAL's authenticated accounts with memberships. This system is extended to provide accounting for any and all charitabledonationsappliedtoeachmembership. The servicesaretoinclude: i. Adminfor eachmember’scharitiesandsocialmediascreennames ii. Creditforallsocialcontentandfeedback(member’sdonations+rewards)andNetworking iii. Analysisofeachperson’sLIKEStoallcontenttopic,correlatedwithsocio-demographic profiling iv. Analysis of each person’s ‘WILL LIKES’(common themes across& between other objects and people) v. Sale of anonymous content (no identity), along with socio-demographic profile. Cost to include database listing of matching opportunity, qualified by multiple parameters of group profile. Targetingbyprospect’scharityaffiliation vi. On-goingcreationofeachperson’sdailyopportunityreport vii. Researchservercollectinganswersfor8-10 questionschallengingprospect’sattentionandrecall. viii. Admin(billingfor rewardingresearch); Issuanceofacquiredresearchtosponsor ix. Adminfor member’sredemption ofsocialcreditpoints x. Researchandpublicationof501-c3socialimpact ratingreports c. A wide variety of Content Objectsincluding mixed video playlists (featuring 10:1 dynamic compression and localized storage), slideshow/storybook support including parent/child relationship to nine (9) levels of depthandweb d. Application of best practices in design though synchronizing resources and selecting from multiple patterns to initiate new design. Such action streamlines future upgrades, optimizes new markets opportunities (e.g. I-POD, HTML5, MP4) and structures maintenance/troubleshooting. Significantly, this means the code programming principles are easy for new and experienced object programmers to assimilate. e. Over500DRUPALcontentnodesrepresentingindividualmulti-mediacontentposts,aswellasnavigational and presentation frameworks, including but not limited to sample e-book, slideshow/theme menus and groupportals) 3. SMRCAppliedSocialProcessTechnologies: A. Intuitive-Predictive Algorythmics: SMRC develops and configures powerful “socially aware” intuitive-predictive algorithms (algorythmics).1 With a nod to Web 4.0, SMRC’s state-of-the-art algorythmics are adaptive and dynamic, evolving in real-time and in-step with our membership’s ever- shifting social context content and online behavior. The power and potential of SMRC’s algorhythmics are functions of the width breadth and depth of the participation (input-actions) of SMRC’s membership. The flexibility accuracy and precision of SMRC’s algorhythmics come from its ability to 1 See Addendum: Intuitive-Predictive Algorithm
  • 19. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 19 of 58 permute tens of thousands of objects and values against tens of thousands of axes in less than a second. SMRC’s algorythmics source data sets and user behavior dimensions which include: 1. existing social web ‘clouds’ (e.g. Youtube, Twitter, Facebook, Flickr, etc.) 2. commercial websites (e.g. purchasing trends: e.g. Amazon, Ebay, Overstock, etc.) 3. existing personality profile meta-data 4. gaming profile meta-data (e.g. Xbox live) 5. additional corpus archives: a. message & update archive b. written-word archive (e.g. commentary, blogs, reviews, etc.) c. image & video archives d. network connectedness and interactiveness maps (spheres of solidarity) 6. browsing & search habits (e.g. keyword & combinatorics analysis) 7. additional personal analytics: a. scheduling and calendaring b. geo-tagging and geo-tracking c. biometrics d. life-streaming, life-casting SMRC's innovative Spheres of Solidarity (SoS) algorithm evaluates the strength of connections in each member's social network, identifying and tracking the evolution of key influencers. SMRC’s SoS algorithm follows three simple rules: 1. Track analyze & collate member-actions (60%) 2. Track analyze & collate the (re)actions of member’s first-degree connections (30%) prioritized by: a. Frequency/volume of interaction b. Duration/quality of connection (signal strength = words become flesh) c. Caliber d. Modality - (wall post, blog post, comment, etc.) 3. Track analyze & collate the actions of first degree with the wider web (10%) similarly prioritized. B. High Performance Computing: SMRC aggregates an increasing volume of social media analytics data and employs a number of high-performance computing techniques to aid in the optimization, correlation and processing of social meta-data. Drawing from successes in the Business Intelligence (BI) sector and their evaluation and identification of Key Performance Indicators (KPI) to intelligently manage and predict data, our analytics-based approach could be described as Network Intelligence, or as many within the analytics community have called it, “Sentiment Analytics.” Categorizing, correlating and predicting something as subjective as a sentiment or opinion is precisely the key indicator SMRC has been designed to produce. The number of variables required to achieve a scientifically valid and statistically significant prediction value is between 100-150 discrete data points. SMRC CBO, Phil Nakata, has over twenty years high-level experience developing advanced expert systems capable of synthesizing social media across three data domains:  Public Social Media Data  Private SMRC-member Meta-data  Derived Data (Composite SMRC Data-points)
  • 20. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 20 of 58 Public Social Media Data includes aggregate social media available on the public internet and contained within public meta-data aggregators and data warehouses (e.g. Nielson) Private SMRC-member Meta-data comes in the form of SMRC profile data and requested permission to access SMRC-members’ third-party social media accounts. Certain social media sites, for example LinkedIn, differentiate between public and private published data. SMRC members have the ability to include these “private feeds” in order to increase their data’s net worth. Derived Data includes social media specific data which has been processed to decipher meaning from groups of text, audio, video, etc. An example would be natural language processing of status updates into a discrete (composite) value which is then tied to a larger process or algorithm. (e.g. SAS) Exponential Data Growth Strategies As SMRC’s membership grows, the amount of member-generated content and the possible configurations of these behavioral data sets grow exponentially… data has no expiration date. The amount of computational processing power required to synthesize data from all domains will require a novel distributed-computing model. SMRC’s Founders have decades of experience in the high performance computing space and have targeted the following HPC technologies in our development work:  CPU and GPU-based high performance clusters  Distributed computing platforms and APIs (CUDA, OpenCL, MPI)  User-based distributed computing models (e.g. SETI, Folding@Home) Each HPC technology addresses the manner in which the data will be processed or how a data-point is ‘bound’ to a restraint. For example, certain data points are bound by mathematical computation as in the case of simple keyword extraction or frequency analysis – and such computation is easily parallelizable in a CPU-based cluster. Google used affordable Linux clusters (CPU-based) in its early years to do the heavy lifting of its algorithms. However, the increasing amount of variables and behavior-mapping quickly exhausts traditional mathematical models and enters a non-polynomial space that the financial modeling sector operates, where variables are bound by dimensions which include: times, momentums, rates of change, proximities, and vectors which have yet to be defined. SMRC works with hedge fund quantitative mathematicians to tighten our computational model C. VirtuALLY: Where Facebook users connect to other users as “friends” and “fans,” SMRC members connect to other members as “allies” and “admirers.” Every member’s first ally is the member who invited him/her. Every member’s second ally in the quest for Charity is VirtuALLY, a personal A.I. avatar. VirtuALLY is half personal assistant/half alter-ego – a reflection of the member’s charitable/behavioral/social/personal profile and an animated encyclopedia of the “wisdom of the crowds”… wisdom representing the power of SMRC’s intuitive-predictive algorythmic and crowds representing the collective socio-behavioral data SMRC identifies and configures. VirtuALLY assists SMRC’s members by: 1. Placing the aggregate intelligence of the network at the member’s fingertips 2. Guiding him/her how he/she more efficiently can drive benefits to his/her causes 3. Identifying and recommending “allies” to further his/her causes or projects 4. Integrating the analytics represented in Addenda X & Y
  • 21. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 21 of 58 D. Security: Security is one of SMRC’s core values. In order to cultivate consummate trust among our members, SMRC makes member security an upfront and explicit priority. SMRC ensures secure logon to third-party social media sites on behalf of its members. Our members will entrust SMRC with their account credentials and SMRC will deploy rigorous security methods to protect these credentials. SMRC accomplishes these security practices and industry standard encryption within our content management system (CMS) framework DRUPAL. DRUPAL ensures best practice design methods, maintaining the security of the individual passwords, and private data, along with a tightly managed system of content authorization. The DRUPAL security core maintains criticality levels and mitigates CMS-related vulnerabilities. They have preventative measures against Denial of Service, OpenID impersonation, SQL injection, Cross Site Scripting, Access bypass and Session fixation. (http://drupal.org/security-team/risk-levels) In addition, the SMRC architecture maintains the latest standards for Internet security (external, internal hardware/software, modular and inter-process programming security) as well as adding features such as the programming analysis routines designed to ‘cleanse’ any submissions by subscribers, and multi- levels of content management per content type. E. Decision Support Technologies (Decision Matrixes & Configurators – The most productive technologies): 1.Starting with decision sciences, linear programming, AI and proposal generators in 1990; this science has evolved into (over 20 years – as a specialty AI and/or eventually merging into the fabric of the enterprise experience/infrastructure):  Decision matrixes (simple direct comparison - science of making decisions)  'Configurators' - to create optimum mixes (strategy) of multiple decisions (complex decision packaging) 2.The AI Logic behind the Programming Models:  Attributes, features, options (constraints limits options)  Decisions (rules, models, formulas) and exceptions  Legacy Trilogy/Calico => DecisionOne, experlogix 3.Capabilities - Deliverables:  Captureexpertise/skillsRiskAssessment,Advisories,Performanceimprovement  Complywithregulations,policies,laws,legislation  Automateprocessorchestration:navigation,back-endflow,datainterchange 4.Example: SMRC’sCharity-PhilanthropicConfigurator(SMRC’sentrancescript):  Establishthe bestbenefittocostratios thatare expressedbyanalyzing the factors andfinances of the investment’sinput-output-impact-valuecreationcycle.  Applied across configurator factors, parameterized as degree of interest, such as domestic vs. foreign, the meta to basic categories of charity, to the various contributing enablement channels (such as celebrites,businesses,onlineprograms,personalinitiatives,integratedevents,etc.)  Process: Resources & Investments ('as-is' state) + Objectives (incl. timeline and amounts) => strategy config(target'to-be'); periodicallyre-adjustagainstphilanthropicinvestmentprofile
  • 22. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 22 of 58  Subscriber Profile A:  Resources & Current Investment (Time, Money, Skills, Contacts, Personal Initiatives)  Objectives (incl. costs & timeline)  Investor preferences…Ex:  local, national, multi-national (interest level 1-3)  R&D, Design, Implementation, Advocacy (Participation or interest)  Charity/Philanthropy Meta to Basic classes (interest level)  Most Influencing Charities - to your causes  Most Influencing Celebrities - to your causes  Most Influencing Online programs - to your causes  Most Influencing businesses - to your causes  Charity/CSR Program Profile B:  Background, Scope, Resources, Objectives, Preferences  Resources include related celebrities, businesses and online/offline programs associated  Inputs  Outputs  Impact  Value Creation  Benefit to Cost ratios  Program Performance
  • 23. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 23 of 58 4. Subscriber Profile (for behavioral content analysis & reports): o Social conversation (shared experience) & dialogue, images, etc. Integrating new and re-posted articles, shows, posts or other media (All Time/Location indexed)  Content/Topic/Category Tagged o Games + o Social Media (sub-categories by social, environmental and classes) o News (“”) o Charities, o Celebrities, o Social Industry Portals,  Strength, Sentiment, Passion, Reach (Influences) as repeat/tweets, length/visit, etc., AIDA, etc. o Subscriber by: Social-Techno Psychographics & Standard Demographics  Type: Creator, Collector, Critic, Joiner, Spectator  Tech: User-Gen, People, Collaboration, Rating/Reviews, Tagging/Sharing (incl. photo), RSS/Feeds  ID / API access to range of networks (and subscriber inter-activity) for each subscriber  Demographics  General  Detailed Social Interaction Tracking (SMRC) o Charity:  Subscribers charity profile  History Profile  Subscription  Point History (components and redemption) o Subscriber’s Lifestyle profile/preferences: (lists of response to 5-10 sub-categories each:)  Conversational o Startup, Default, Greetings, Goodbye, LOL, Impressed, Insults)  Online- Current-Now o What's New, (How are you, New?, Plans, Busy  Basics o Name, gender, age, sign, location, email, im  More o Marital, pets, smoke, drink, sports  Looks o General, build, hair, eyes, body art, dress  Personality o General, other people, serious, out-going, humor  Favorites o Interests, Activities, Color, Bands, Songs, TV Shows, Movies, Movie Stars, Sports, Authors, Books, Foods, Friends, Political Views, Religion  Professional o Educ., Schools, Major, Occupation, Skills o Personality Profile(s) (Lifenaut) - 100's of mapped points  Their basic analysis covers o 47 basic personality profile traits,  Their Psychology 'guided' conversations cover
  • 24. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 24 of 58 o Social Network Index:12 questions o Big 5 Test: 100 questions o Interpersonal Support Evaluation Test: 40 questions o Perceived Stress Scale: 14 questions  Their General Profile: o Twenty-seven (27) questions  Their Relationships Profile: o Seventeen (17) questions  Their Family Profile: o Thirteen (13) questions  They also include 'teaching' modules interacting with Three Lifenaut avatars...covering in the end hundreds of questions and dialogs that they are expecting you to repeat multiple times to continually tweak and readjust the bots’ personality to most closely represent each subscriber  They also have an simple text learning module o Learn - attach emotional tag o Digital Artifacts Profile (Lifenaut) with emotion/reference tags i. Supporting All media types (video, Sound, Images, Documents) ii. Supporting All major Social media and Networking sites iii. All Commonly tagged with Location and Time iv. Cross-linked to o Keywords/Tags, o Associated People, o Emotion (Angry, Annoyed, Ecstatic, Happy, Neutral, Pleased, Sad, Scared, Surprised), o Date/Time, o Location (mapping support) and o Type/Beme (Attitude, Belief, Feeling, Mannerism, Personality, Recollection, Value) 5. Subscriber Experience Overview: I. Foundation-class Subscribers: A. Citizen Members (from social networks or charity) * Entrance: by invitation (existing member/subscriber) * Services and Experiences: - Invite members - Earn Points 1. Choose your causes 2. Create & Customize Your Profile 3. Personalize your space 4. Play your games 5. Play and Work with your VirtuALLY 6. Read & bookmark your news and blogs 7. Create, define, join and interact with your groups 8. Take part in contests, quizzes, surveys, polls & activities 9. Create your own unique content & mashups 10. Review and recommend favored (or un-favored) interests 11. Add your friends 12. Organize or volunteer in local charitable operations 13. Share your spare computer time and/or WIFI bandwidth 14. Acquire SMRC points awarded external to SMRC by SMRC
  • 25. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 25 of 58 II. Enterprise-class Subscribers: A. Charity Members:  Entrance: Charities enter our community through nomination by existing members or by application on the website. Once approved, Charity members become active in SMRC’s community by alerting their own networks of donors/subscribers to their new partnership with SMRC. Unlike most current online funding-mechanisms, SMRC is not merely a passive click- through donations portal. SMRC actively collaborates with its charity members to drive more benefits and funds to them.  Services and Experiences: - Supercharges their funding * Direct donation * Donation augmentation - Hones their process * Content migration * Up to the minute information * Optimization of Operations through social media analytics * Extend their reach * Earn points: similar methods (as above) B.Corporate Members:  Entrance: Corporations enter our community through nomination by existing members. Corporate members become active in SMRC’s community by posting their CSR statement (vision statement, mission statement). Unlike traditional consulting, advertising, or marketing models, SMRC embodies the emerging megatrend of social media analytics as a service of enormous value to corporations, placing them in more immediate contact with users of their products and services. SMRC blends this analytic with emerging megatrends in Corporate Social Responsibility to actively coordinate dialogue between its corporate and citizen members.  Services and Experiences: - Publish their CSR vision - CSR / SPR Services (Social Process Re-engineering) - Earn Points: activities and networking for real world CSR impact C.Celebrity Members:  Entrance: Celebrities enter our community through direct invitation from SMRC, through nomination by existing members, or through application. Celebrities become active in SMRC’s community by naming the causes and/or charities they wish to represent, and by alerting their fans to their new relationship with SMRC.  Services and Experiences: - Champion Causes - PSR (Personal Social Responsibility)/CSR Services - Earn Points: activities and networking for real world CSR impact
  • 26. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 26 of 58 SMRC Addendum D: Technology Overview – Features, Functions & Value Table 1 outlines the key technology components of SMRC’s web platform and organizes the technology into the following categories which serve to answer the following:  Features: identifies the components  Functions: describes what the components do  Value: synopsizes the benefit of the components SMRC makes extensive use of the latest open-source and commercial building blocks in order to build a technical architecture capable of sustaining ~50,000,000 unique users. Our executive leadership has over forty years experience developing and implementing expert system, configurator, Web 2.0, interactive and media applications for business and for pleasure. SMRC’s choice of open-source has ideological as well as pragmatic justification. SMRC’s Founders admire and celebrate the principles and democratic ethos of Open-Source. Feature Function Value Architecture LAMP Architecture (Linux, Apache, MySQL, PHP-Perl) Standard of the Internet and Web 2.0 design Low Cost Powerful servers and integration Server-side computing Design Best Practices Design -oriented architecture, and system visual design metaphors design -use of technology Virtual Online OS Virtualized Cloud Server Hardware independent Run App on mini/Linux/Unix High Performance Low Cost Virtual Online Mass Storage Cloud (ex : Amazon) Low Cost Upload and storage High cost Download Low cost mass storage Low Cost of data retrieval as reports are aggregate summaries as compared to individual records Extracted Syndicated Content Gigalerts Pre-programming searches services and outsourced XML extractions – combined with CSS/JS processing/ rendering subscribers to alternately use to create reviews of these content Google blog/video extended searches iCopyright Social Mention Feed43 / RSS / Feed2JS Extracted Social Content DRUPAL All leading social media form Formats supported Calculation of social credit for content – includes social media profiles Extracted Sponsor Content DRUPAL Web template mod. For extracting text/content Calculation of social credit for content
  • 27. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 27 of 58 Content Management (Social Media) DRUPAL Leading Open Source Content Management System for Social Network Best integration with social networks ad authorization support Broad market acceptance -source bank of contributed content objects (ex Strong support from open source community Lots of programmers Best Practice Design – leveraging quality and standard methods of toolkit -list objects, Version 7 in beta => IPhone market (XHTML, MP4) Database PostgreSQL -class database replacing MySQL in standard LAMP architecture – via inheritance of the design – 50X as scalable: By contrast MySQL requires a 2 nd server instance (software) for each simultaneous user Emotional analysis Aggregate sentiment = strength, sentiment, passion, reach context-based linguistics / integrated w/ special configurators search/taxonomy datamine for anomolies Develop precise mapping of content sub-categories as an instance compared to socio- demographic classes Develop from correlations bw. and across categories, along with social influences to know what they WILL LIKE. To be combined with socio- demographic profiles, stripped of any identity content. Acquired by cause marketing sponsors for $0.03 per profile, for listing in SMRC opportunity database with appropriate qualification requirements for this opportunity OEM Google AdSense & AdWords OpenX Provides monetization of a sponsor’s traffic & content offering same features of Google’s search marketing Reduces overhead ~60% on average Allows for external placement related ads With SMRC – members only received personalized promo Custom Authority Sites Top ranking in search based on focused content Provides focus on industry or location All listing become prospective advertisers Enormous response Lower cost to advertise More traffic that brings business Better ad revenues With SMRC – members only received personalized promo Menus and Dynamic Code jQuery (AJAX) and Dynamic menus integrated with taxonomy sub-menu category listing for any article/social media Maximum ‘top of page’ exposure for any article under multiple sub-category listing structures create dynamic menus Provides up to nine (9) levels of menu support Interactive Mobile Video HTML5, CSS3, HTML5 Video (MP4, WebM, & OGG) Provides video codec replacement for Mobile Flash (that is no longer supported) Turns cell phones into the next social portal for social good – notification & participation.
  • 28. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 28 of 58 Security Secure forms and content interaction All code/content submitted by subscribers is run through special ‘cleansing’/code sanitization routines – potentially malicious code is removed Although many people think that hacking a secure (128-256 bit) certificate is now hackers get in… but in fact, the majority of hacks are because of poor security in the common Internet “Form” BananaScreen, KeyLemon and/or Luxand Blink Login and Periodic re- validation of machine user’s identity Secures identity of user to SMRC application security User identity Identity of User to other SMRC members (authentication) VPNs & Proxies HandyCafe Filter Manager TOR EasyVPN LANOnInternet (LANoi) Hamachi (Logmein) Content Filtering (HandyCafe Filter) TCP/DNS Proxy (TOR) Secure Free VPN High Speed Remote Access Cross-platform remote access Secure, High-speed access Subscriber privacy Bandwidth on Distribution Video Compression & High Availability Supported for packaged YouTube video, as well as supporting the upload/compression, storage, and the processing of a faster, high quality Flash video format from most other video types Lost cost storage for big videos Fast response (upload and/or downloads) Version Control Version Control Built-in standard functionality of a good content management system Any updates (versus creating new content ) to any content allow the user to archive the cache (what the document looked liked before edits) as a replaceable copy based on a single keystroke Content Objects Expanded set of content objects Ratings, Comments, Video, Image, Slideshow, Polls/Surveys, Book- Chapters and sections (to 9 levels), Blog, Tracker, Portals, User pages, content menus (within), Forums and custom templates (News, Games, Social Media, Celebrities, Charity templates) and secure forms Easy, self-service environment for building or interacting with social content. Virtual Companion Integrated Technologies Verbot and their many knowledge-bases Verbot – Online (Lifestyle) Verbot – Desktop – – Reflective Intelligence intelligent avatar for either/or subscriber’s knowledge (question/answer and multi-level dialogs)
  • 29. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 29 of 58 Knowledge bases Lifenaut.com – Detailed Personality Simulations Can learn – be taught easily personal companion to: – at SGS or the broader web space content Add-on intelligence for expert systems, etc. (TBD) Design Tools Mockup Screens, Firefox, Mindmapper Wire-framing Better and more standardized designs Firebug and other CSS support Better supportive justification and planning Mind/Idea mapping Conversation & Information Tools Conversation Data- Mining Tools & Strategy Information Processing Tools Text Processing Extracting behavioral content Human Analysis Status and Trends Natural Language Problems and Opportunities Seeking sentiment, influence, etc. Support Tools Optimized, Dynamic Support Tools Decision matrix Better analysis, profiling and monitoring applied against larger data sets “Surplus Sharing for Charity” Wireless (WIFI) sharing by all Win7 Virtual Router Manager WLANController HandyCafe – WIFI Cafe Free WIFI access to all members when mobile => largest Wide Area Wireless MESH network Sharing WIFI for Ethernet options for all other Win, Mac machines SMRC ‘points’ paid to all members who share their WIFI Points translate to more money to charity Sub-nets w/area caching are more independent, responsive and flexible Membership in Boinc.berkeley.edu – Parallel processing millions of computers daily Members share non- productive computer time to philanthropic/ scientific projects Examples: SETI, Protein- folding for medicine, Environmental studies Screensavers show data reports Major contribution of computer power to worthy projects Members earn SMRC ‘points’ for sharing their surplus computing power for charity
  • 30. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 30 of 58 Person to Person and Person to Group communications Tinychat.com P2p.tinychat.com Snapyap.com Group video conferences to 12 cams and 400 users Free, dynamic or scheduled one-on-one video phone Free, dynamic one-on-one video chat/phone Snapyap.com Mailvu.com Free Video Email Quick message – snapyap Long message - mailvu Video Email message IPChat Chat for ad-hoc networking Chat for ad-hoc networking Secure Personal and Group Sharing Evernotes g Always online sync Mobiles devices – cloud based Tonido 2Peer Mobiles – PLUS Relay around Firewalls (Tonido) Windows & Mac only – similar to Tonido but w/o relay works around firewalls and is for all devices BadBlue Personal Media Server Similar to both Tonido and 2Peer – but focuses on most common filetypes – spreadsheets, ppts, graphics, music, word docs Well designed to share these types Behind firewall w/o VPN then requires port forwarding WebWeaver Personal web/ftp w/VPN requires port forwarding if behind a firewall Simple support for sharing in disconnected Ad-Hoc networking Utilities InternetOWL Tracks changes to any URL (webpage), integrated with DIFF-type functionality Akin to an intelligent RSS a. Xirrus Wi-Fi Inspector b. HeatMapper c. inSSIDer a. Proximity by signal strength with vocal as signal increases b. Site Survey (3-4) points triangulates other SSID c. General sensitive strength meter and switcher WIFI Analysis Tools WakeOnStandby Wake from Hibernation, or Standby and run task Reset network connection, run batch, wait, etc. CamSpace Game Controller Cam tracks object with image tag like application of controls and distance from the screen Turns any non-transparent object into a controller (sensor watches and triangulates movements
  • 31. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 31 of 58
  • 32. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 32 of 58 SMRC Addendum E: Overview of the Online Charity Space 1. The Popular Social Web - MySpace, Facebook & YouTube a. MySpace, Facebook and YouTube offer virtual property to nonprofits on their sites.  Facebook's Causes raises money and awareness for causes. Causes claims 140 million members and reports over $27 million raised for some 390,000 user-generated causes to date. Causes averaged 25 million active users in October 2010. 2. Independent Charity Portals a. Charity & Volunteering  BringLight.com – A central hub for charities to post information about themselves and get donations. All listed charities are certified.  CareBadges.com – A similar concept to all the rubber bracelets of the past few years, put a CareBadge on your social profile or website, and raise awareness of your favorite cause and get people to donate.  ChangingThePresent.org – A collection of charities from around the world for all types of causes.  DonorsChoose.org – A national site for teachers to list the things they need for the classrooms and try to find people to help them raise the money to get it.  Nabuur.com – Online volunteering. Tell them what your skills are and they will try to find a project you fit in with.  SchoolKidsComeFirst.com – Just for Seattle, WA area schools, but teachers submit proposals for what they ned, and people can donate to fund it.  SixDegrees.org – Kevin Bacon’s idea to turn the infamous game based on him in to a way to raise money for charity.  VolunteerMatch.org – Enter your location and find volunteering opportunities in your area. b. Charity & Microcharity Fundraising, Ad-Based vs Search-Based  Pledgie.com – Portal for fundraising user-generated causes. Direct, user-driven micro- philanthropy.  Ripple.org – Allows users to click ads or search, and a portion of the ad or search proceeds will go to charity.  MagicTaxi.co.uk – A UK based search engine that gives 50% of ad revenue to a daily charity or to a charity of the user’s choice.  Searchgive.com – A portion of ad revenue generated while user’s search goes to a charity of the user’s choice.  CatchTomorrow.com – Allows users to select a school district to whom 50% of all ad funds and searches are donated.  GoodSearch.com – A Yahoo-powered search engine, in which 50% of all ad revenue goes to charities of the user’s choice.  EveryClick.com – A UK based charity-giving search engine supporting charities of the user’s choice. c. Charity & Microcharity Development vs Fundraising  Network For Good – Popular. Allows donors to give to their favorite charity Provides record-keeping. For nonprofits, it accepts donations online. A processor of online charitable donations for more than 1 million nonprofits, NFG has processed roughly $100 million dollars through its site and affiliated sites since its debut in November 2001.
  • 33. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 33 of 58  Change.org – Provides information on charities. Allows volunteering and donation. Serves around 1500 or so member nonprofits.  GiveMeaning.com – Provides online fundraising that allows users to rate each other’s information, credibility and more.  Fundraiser.com – Supports online personal, political, nonprofit, church, schools and sports fundraisers.  FirstGiving.com – A site for promoting local, nonprofit fundraising events.  EasySponsorship.com – A site for promoting local, nonprofit fundraising events. d. Micro-Funding  Kiva.org allows donors to make interest-free microloans to entrepreneurs in poor countries all over the world.  Razoo.com – A website build around micro-donations. Nonprofits can set up giving pages and network with their supporters. One of the few donation sites that charges no processing fees. One-hundred percent of each donation goes to the nonprofit.  DonorsChoose.org - enables individuals to donate to specific needs in public schools.  GlobalGiving.com – allows donations to individual projects by topic and by world region.  Jolkona – a new website that accepts project-based micro-donations. e. Charity & Microcharity Tools  ContributionManager.co.uk – A site allowing charities in the UK to track donations and file appropriate paperwork.  eTapestry.com – Donor tracking software for groups of any size.  WildApricot.com – Management software for fundraising and nonprofit groups.
  • 34. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 34 of 58 SMRC Addendum F: What is SMRC? – Our Vision and Values SMRC is an enterprise-class, by-invitation-only social and philanthropy club (expressing one’s social credit by ‘points’) that drives funding and benefits to the spectrum of philanthropic causes by leveraging celebrity appeal, personal and corporate social responsibility, the popularity of online social gaming, social media, social news, social sharing, social advocacy & social activities (events, contests, campaigns, etc.):  Unique to the On-line Social-Gaming-Club industry for Charity, SMRC does not require advertising or continual network growth to be a sustainable funding source for charity. A few millions subscribers at SMRC creates a steady recurring stream of hundreds of millions of dollars to charity each year (while the value related to the behavioral content makes the system ‘more’ than sustainable).  A subscription is not required to participate and gain SMRC points, but it is required to redeem the points in SMRC’s various contests, special events, and/or for charitable (and tax-deductible) receipts.  100%+ of a subscriber’s funds are converted into tax deductible donations to charities they care about and designate so in their custom subscriber charity profiles.  SMRC is a combination of a Charitable Trust (xxxxx.net) that processes 100% of the subscriber funds, a C Corp (xxxxx– dotcom, that supports the social network while providing premium professional consulting services to it’s subscribers who are businesses (directly, or as celebrities or charities). xxxxx.org is the pending 501(c)(3) Foundation that is the beneficiary (along with all participating charities) of SMRC’s market ‘exit’ strategy.  100%% of the profits (or 92% of the revenues) of SMRC’s professional monitoring/analysis, consulting services (and enablement services) – provided to subscriber businesses, celebrities and charities (CSR, market research & SPR) – and based largely on the value of the behavioral content of the network, goes to charity (in the categories and credit of it’s subscribers to the Charitable Trust/club) OK – Now Imagine a world in which the time you spend online…  sharing with friends  playing games  catching up on news most important to you – from the most popular networks of the social web  personalizing your profile  following your favorite celebs & personalities  posting & rating videos & photos  taking part in discussions & group chats  filling out surveys, polls & questionnaires  promoting your favorite causes, media & parties  searching & reviewing goods & services  creating or re-posting, dynamic multi-media content (videolists & poll, slideshow, surveys/polls, etc.)  blogging & following your favorite blogs and online content …
  • 35. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 35 of 58 …ALL generates benefits for the charitable causes dearest to your heart. SMRC intends to bring you that world.  The Social Credit (SMRC ‘points’, with more money from SMRC going to charity in the subscriber’s credit) that each subscriber generate comes, not only from every action/input they provide to SMRC, but also from the level of influence (in terms of feedback or response) it generates from others members – from 2-3 degrees of separation.  For Serious Social Advocates SMRC provides an array of power tools and a safe & secure workshop where they can spend countless hours generating digital content, raising awareness and interacting with other advocates, with the understanding that the causes most important to them will always receive funds in excess of any monthly pledge(s) they make.  For Casual Daily Social Interaction & Fun SMRC provides an engaging social networking, social media, social gaming and social activities playground where every action members take generates points that benefit charitable causes of their choice.2  For SMRC’s Enterprise Associates – charity members, corporate members, celebrity members, and editors – SMRC provides a solid platform for identifying and addressing urgent issues and needs, for collecting and sharing valuable real-time behavioral data, for funding and cultivating the causes they represent, and for broadcasting their personal or corporate socially-responsible messages to targeted, captive and socially-active audiences. SMRC’s Objectives  Support a virtual self-sustaining, ecological economy revolving around humanitarian causes  Drive significantly more net funds on significantly more sustainable bases for humanitarian causes than conventional fundraising methods  Facilitate responsible enterprise… including CSR/PSR services, Web 3.0-4.0 engagement, enablement, resource and impact portfolios  Intellectual fulfillment & personal fun  Promote a global humanitarian ethos SMRC’s Core Values (CSR)  Philanthropy – Philanthropy, love for humankind, is the glue that holds together everything SMRC does. (see Addendum: Manifesto)  Democracy – SMRC empowers people to self-organize for good. In living systems Élan vital (power) flows from the ground (earth) upward. (see Addendum: Philosophy of Democracy)  Security – Positive trust secures every social bond. SMRC proactively eliminates potential threats and safeguards the confidence of our members. (see Addendum: Philosophy of Security) 2 Once invited, anyone can join and participate in SMRC free of charge, however most rewards and points are redeemable only by members who have a complete profile. Some games and activities have age requirements.
  • 36. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 36 of 58  Transparency – One has nothing to hide who does only good. One has everything to display. (see Addendum: Philosophy of Transparency)  Economy – SMRC sponsors the race for good. Our house-rules and the friendly- competitive ethos they engender encourage our members to come together over the question: how good can we possibly get? (see Addendum: Philosophy of Economy)  Ecology – Engaging the logic of the complex, interconnected eco-system in which we live, SMRC’s every move aims at efficiency, long-term thinking and sustainability. There’s a math for that. (see Addendum: Philosophy of Ecology)  Creativity – SMRC celebrates and fosters the human spirit in its ingenuity, perspicacity, artistry, versatility and harmony. (see Addendum: Philosophy of Creativity) A few words from SMRC’s Founders…. SMRC’s concept is simple: leverage the power and popularity of the social web to drive unprecedented benefit to charities. As citizen-members of our private philanthropy club seamlessly experience the fun of familiar social web activities, and as corporate and celebrity members expand and achieve their social responsibility goals, a global humanitarian ethos takes shape. SMRC’s mission is to establish an online environment where global good can flourish. We, SMRC’s Founders, have identified several key megatrends and channeled them into the logic of an overall game-space structured to connect the everyday social web activities of our citizens to powerful global humanitarian outcomes. In so doing, we reinforce the profoundly human inclination toward empathy and altruism as a criterion for fitness. SMRC’s core-values are built into the framework of our mission. Our commitment to democracy is evinced in everything from our choice of the web as our primary vehicle (especially insofar as the web represents a platform for “digital democracy”), to our open- source coding practices and policies, to the ubiquity of member-generated content bookmarks and ratings, to the invitation/nomination structure of our club. Industry- leading security policies pervade the architecture of our human and technological systems, creating a space for trust and transparency to flourish. Our delight in the human creative spirit is evinced in our openness to suggestion from all creators of value—from open- source coders, to enterprise-class game and content-developers, to citizens who generate content—and in our avid pursuit of excellence in developing a superior experience and suite of services for each of our members. We, SMRC’s Founders, have the vision, the professional & personal connections, the know-how and, most importantly, the heart to bring this ambitious project into reality. Above all, each of us is committed to see unprecedented moneys driven to charities and to see the charity space flourish in response to the new and powerful tools we are building. The signs of the times are changing. Megatrends such as the evolution of the web, the economics of responsibility, and the ecology of sociality converge to hint at humanity’s horizons. We invite those with complementary values and vision to join us in our purpose for good.
  • 37. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 37 of 58 SMRC Addendum G: SMRC Social – Charity Market Report 1. The Social Web Space – If the diverse uses of social networks represent the mineral wealth of the earth, present social web models mine only the copper, leaving the bulk of the mineral value untapped. The ad-based revenue model which dominates the US social web space still revolves around the archaic notion that users are passive observers and consumers rather than active creators and producers of value. This twentieth-century television/radio advertising model is thus limited in its ability to realize the progressive value and power of social networks. The dogmas of the quiet past are truly inadequate to the stormy present. While this model is calculated to approach the long tail, its angle of approach remains shallow & one- dimensional. Innovators who recognize that much of the raw material provided by the social web remains unredeemed are now devising new ways to harness the flows of value generated by its cognitive surplus. Appreciative of the past and sensitive of the possible, SMRC monitors these flows of value in the marketplace and aggressively explores new capital horizons as they come into view. The Social Web is a nineteen-year old phenomenon,3 eight-years in its present manifestation,4 with global scope, endlessly and rapidly evolving & expanding applications, and virtually limitless potential. Increasingly, web users are proactively interconnecting their lives and minds. As of June 2010, according to Nielsen, U.S. users spend better than half their time online interacting with friends and groups.5 Every day, this phenomenon is becoming more:  Popular  With over three billion (3,000,000,000) registered user accounts worldwide…6 and nearly one billion (1,000,000,000) unique visitors.7  Global time spent online on social networking sites increased 82% year-over-year December 2008 - December 2009.8 3 No sooner did the World Wide Web become available to the public (1991) than its users began to find ways of connecting for social interaction, transforming the intentions of the web’s creators. 4 Friendster, the first modern social network, came online in 2002. http://en.wikipedia.org/wiki/Friendster. ICQ (1988), Classmates.com and Match.com (1995), and Napster (1999), and were milestones in the evolution of the Social Web. 5 http://blog.nielsen.com/nielsenwire/online_mobile/what-americans-do-online-social-media-and-games-dominate- activity/ 6 As of Nov 11, 2010 the running tally of 194 social networks (118 of which report registered user figures) at http://en.wikipedia.org/wiki/List_of_social_networking_websites stood at 2,900,576,677… with a handful of conspicuous absences. Of those listed 15 sites are among the top 100 most visited (per Alexa). http://www.comscore.com/Press_Events/Press_Releases/2010/10/Russia_Has_Most_Engaged_Social_Networking_Au dience_Worldwide/(language)/eng-US 7 As of August 2010 Comscore.com reports 964,305,000 unique visitors… cf. excluding “traffic from public computers such as Internet cafes or access from mobile phones or PDAs.”
  • 38. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 38 of 58  Three out of four regular internet users maintain at least one social network account.9  In March 2010, Facebook surpassed Google as the most visited website in the U.S.10  In the U.S., an average adult spends nearly fourteen hours a week online.11  Profitable  In June of 2009, Techcrunch estimated the market value of the top twenty-seven social networks to be over $27.5 billion ($27,635,000,000.00).12 As of September 24, 2010, Second Shares put the value of the hottest nine U.S. social networking sites at over $45 billion ($45,497,000,000.00).13  Social networks worldwide are estimated to bring in $3.3 billion in advertising dollars alone in 2010.14  In the U.S., social networks are scrambling to capitalize on untapped non-ad revenues represented by the social web. Among the streams poised to emerge is trade of virtual goods.15 Social media analytics is a burgeoning field.16  Progressive  October 26, 2010 – Facebook COO Sheryl Sandberg announced that 10,000 websites integrate with Facebook every day.17 An unnamed source at Facebook revealed that Facebook credits, already sold at Target, will be sold at Walmart and BestBuy.18 8 http://blog.nielsen.com/nielsenwire/global/led-by-facebook-twitter-global-time-spent-on-social-media-sites-up-82- year-over-year 9 http://www.communityorganizer20.com/2010/11/01/global-trends-in-social-networks-the-socialization-of-brands/ 10 http://www.businessweek.com/news/2010-03-17/facebook-surpasses-google-in-weekly-u-s-hits-for-first-time.html 11 http://www.mediaite.com/online/time-spent-online-nearly-doubled-this-decade/ 12 http://techcrunch.com/2009/06/04/the-true-value-of-social-networks-the-2009-updated-model/ 13 http://www.theatlantic.com/technology/archive/2010/09/what-are-your-favorite-social-media-sites-worth/63481/ 14 http://techcrunch.com/2010/08/16/advertising-social-networks-3-3-billion 15 Asian based social media company Qzone made over $1 billion last year with just 13% coming from advertising revenue. http://www.reuters.com/article/idUSTRE58800D20090909 16 http://www.information-age.com/channels/information-management/features/1261023/measuring-the- zeitgeist.thtml 17 http://mashable.com/2010/10/26/10000-websites-integrate-with-facebook-every-day/ 18 http://mashable.com/2010/10/26/faebook-credits-walmart-best-buy/
  • 39. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 39 of 58  February 3, 2010 – Pepsi Co. abandoned its 23-year-old Super Bowl marketing campaign in favor of a $20 million social web marketing initiative, Pepsi Refresh, a social media giving-campaign that awarded grants to the grassroots projects earning the most votes on its website. Since January 2010, more people have voted for Pepsi Refresh causes than voted in the last presidential election.19  October 22, 2010 – Zuckerberg, Bezos, and Doerr announced their $250M sFund, a clear indicator that market leaders envision the social web space as the next important wave of technology. Compare Doerr and Jobs’ 2008 announcement of the $100 million Kleiner Perkins iFund, on the bet that mobile devices (smartphones) would become more important than personal computers.20  Powerful  “Wikipedia took the idea of peer review and applied it to volunteers on a global scale, becoming the most important English reference work in less than 10 years. Yet the cumulative time devoted to creating Wikipedia, something like 100 million hours of human thought, is expended by Americans every weekend, just watching ads.”21  Barack Obama’s 2008 presidential campaign abandoned conventional media in favor of social media, and proved to be the most successful political fundraising effort in living memory, with over half a billion dollars in online donations.22  The social web is revolutionizing consumer behavior. “Tech-savvy consumers are [now] in charge with their use of emerging social technologies. Retailers need to meaningfully engage with informed consumers digitally or lose market share. The use of social media and mobility can level the playing field and provide retailers of all sizes with opportunities to amplify their brand.” 23  The social web is a prime mover in the rapid development of the developing world. “[A]dvances in technology and the falling cost of delivery are driving big corporations as well as entrepreneurs to take new or renewed interest in solving some of the most seemingly intractable issues we face as a global community, from health care to education, from economic development and rolling out affordable alternative energy to coping with the social and economic fallout from natural disasters.” 24 19 www.refresheverything.com/, http://mashable.com/2010/09/30/creative-social-good-campaigns/ 20 http://www.businessweek.com/magazine/content/10_44/b4201046220873.htm 21 Clay Shirky, Here Comes Everybody. SMRC aims to harness & monetize for charity what Shirky calls users’ “cognitive surplus.” 22 http://www.europeanbusinessreview.com/?p=1627 23 Bernie Brennan, former Chairman of the National Retail Federation, Branded! 24 http://www.guardian.co.uk/activate/phones-revolution-developing-world
  • 40. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 40 of 58  The social web is revolutionizing activism. A prime example is Ushahidi: “(Swahili for ‘testimony’ or ‘witness’)… a website created in the aftermath of Kenya's disputed 2007 presidential election… that collected eyewitness reports of violence sent in by email and text-message and placed them on a Google map. It is also the name of the open source software developed for that site, which has since been improved, released freely, and used for a number of similar projects.”25 2. The Charity Space – According to the Charitable Giving Index, published September 2010, better than half the world’s population regularly gives or volunteers for charitable causes.26 According to Giving USA, in 2009 Americans donated $303.75 billion to charity, and individual givers and charitable bequests accounted for 83% of that total, which represents roughly 3.3% of individuals’ annual income.27 As a cultural phenomenon, altruism flourishes in step with material abundance due to its… a. Universal Appeal – to the better angels of our human nature (See Addendum A: Manifesto). Charity is as old as humanity itself. In large part, charity made and makes us human.28 A flood of recent research has pointed to the human capacity for empathy as necessary and decisive for the evolution of homo sapiens.29 Based on these findings, we regard altruism as an innate and fundamental human trait. b. Universal Advantage – including…  Tax-benefits & other benefits – that incentivize altruism.  Corporate Social Responsibility initiatives – next-paradigm business-drivers  Social currency c. Universal Agency – a different species of doing, a different breed of profit In classical economic theory, agents act out of rational self-interest. The ubiquitous phenomenon of charity (altruism) presents significant challenges to this theory. Hamilton's celebrated biological formula for altruism (c < b * r) remains incomplete for human systems in which we observe memetic (ideological political professional & cultural) solidarity regularly trump genetic coefficients of relatedness.30 Furthermore humans universally share a powerful instinct to help even strangers with whom they share neither known genetic nor known memetic heritage.31 25 http://en.wikipedia.org/wiki/Ushahidi 26 The report can be found in its entirety at: http://www.cafonline.org/pdf/WorldGivingIndex28092010Print.pdf 27 An executive summary can be found at http://www.pursuantmedia.com/givingusa/0510/ 28 Cf. Jennings, A, The Invisible Matrix: The Evolution of Altruism, Culture, Human Behavior. Lulu.com (2006) & Batson, C. D. Altruism in Humans. New York: Oxford University Press (forthcoming). 29 Cf. V.S. Ramachandran, “MIRROR NEURONS and imitation learning as the driving force behind "the great leap forward" in human evolution,” http://edge.org/3rd_culture/ramachandran/ramachandran_p1.html 30 W.D.Hamilton (1964). “The genetical evolution of social behaviour I and II.” — Journal of Theoretical Biology 7: 1- 16 and 17-52. 31 Peter Singer, (2009). The Life You Can Save. Cf. http://www.nytimes.com/2009/03/11/books/11garn.html
  • 41. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 41 of 58 These primal impulses to help, activated by mirror neurons, derive from the overlap of our brains' map of others' bodies onto our brains' map of our own.32 This other-as-self phenomenon, often activated by visual stimulus (our eyes), is so powerful it may be activated by stories, for narrative characters present only to our minds-eye. This phenomenon stands behind golden-rule formulae which arise independently in virtually every culture. In every culture, calculi (maths) exist whereby the individual is deemed richer when he shares value with others out of his surplus.33 We have evolved from maternal instinct to genuine fellow-feeling. Not only does benevolence count as credit in every culture, as the world grows more connected and as economics globalize it is increasingly the case that reinvestment in any represents return in one's own. Insofar as any self is always already embedded in and responsible to numerous social spheres, rational self-interest becomes indistinguishable from rational others- interest. Giving is responsible. Giving is sustainable. 1.1 Charity Space Latest Trends a. Unprecedented Proliferation – Over the past decade (2000-2009) the number of registered 501(c)(3)s has grown by 151.2%.34 b. Emerging Online Presence – Social Media giants Facebook, YouTube and Myspace all now offer virtual property and platforms to many non-profits on their websites. Facebook's Causes (launched May 25, 2007) currently leads this trend. Causes claims 140 million members, and reports over $27 million raised for some 390,000 user- generated causes to date.35 Causes averaged 25 million active users in October 2010.36 c. Explosion of Options – Several independent charitable donations portals exist, providing services such as accepting online donations, linking volunteers with opportunities, driving micro-revenue streams for charity via search engines and ads, and providing micro-charities with organizational tools. (See Addendum E: Map of the Charitable Web Space & Addendum F: Charity Statistics by Region, Income & Demographic) 2. Social – Charity - Problem/Opportunity Space: Tremendous possibilities exist where the economics of the Social Web and the “ecologic” of charity intersect. a. Social Web Economic Paucity 32 V.S. Ramachandran, (2000). “Mirror neurons and imitation learning as the driving force behind ‘the great leap forward’ in human evolution.” www.edge.org/3rd_culture/rama/rama_p1.html 33 For example, for someone with $100 in $1 bills, once he is fed clothed & sheltered, there exists statistical "sweet- spots" for personal benefit from sharing with, e.g. 1) a friend, 2) an acquaintance, 3) a fellow-citizen, 4) a stranger (fellow-human). 34 USA Giving 2010 Report, p 22. 35 http://exchange.causes.com/about/ 36 http://statistics.allfacebook.com/applications/single/causes/2318966938/MAU
  • 42. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 42 of 58 1. Most advertise to generate revenue (e.g. Google & Youtube). SMRC eschews conventional advertising models. 2. Many hold user data they cannot fully exploit for privacy reasons (e.g. Facebook & Twitter). The social web has yet to figure out how to capitalize fully on the popularity of social websites and the wealth of behavior populations perform on them. b. Charitable Ecological Waste 1. Conventional funding mechanisms include galas, concerts, events, fundraising drives, seasonal promotions, direct & indirect sales campaigns, traditional broadcast marketing, etc. 2. These conventional funding mechanisms, and their underlying models, are not only sporadic but also carry heavy overheads which eat into the funds collected. c. SMRC brings together the economics of the social web and the ecologic of charity:  By aggregating the Collective Intelligence of the network, SMRC captures value untapped by conventional social web applications in a novel & vibrant zero-ad/zero- threat space.  SMRC provides a regular, recurring, and zero-overhead funding alternative for our charities. For our members, their societies at large, and the world, SMRC offers an environment for the development of future applications to optimize the potential of the ever-evolving commons. In so doing, SMRC – subliminally, symbolically, and socially – promotes and rewards altruistic social behavior and an ethos of philanthropy.  The Social Web is just the most recent of humanity's modes to express its sociability. Before there were virtual social networks there were real social networks. Virtual social networks are handy tools by which we extend and actively evolve real social networks. Within the space of charitability, sociability becomes eusociality. By nature, the two go hand-in-hand. SMRC clears and maintains a space, a shared place, where they can flourish... free from the threat of ads and malware, where personal privacy is secure, where the flow of social and real currency is 100% transparent, a true reflection of the zeitgeist. The zeitgeist values social responsibility. Recent studies in the corporate world evince how much social responsibility justifies cost-premium and how much goodwill justifies purchase-intent. We look for this trend to continue. As members of SMRC’s community, we take part in something larger than ourselves. We carve out a niche where charity meets social web dynamics, where the better angels of our human nature may stretch and exercise their powerful wings.
  • 43. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 43 of 58 SMRC Addendum H: SMRC Social – Charity Market Reference Materials: Corporate Social Responsibility:  Activists in Social Profit Campaigning..Views and Effectiveness.pdf  BCG Creating Social Impact.pdf  BCG Social Advantage.pdf  Cone_WSJ_Response_Aug_2010.pdf  CSR Contributes to Bottom Line.pdf  CSR Measuring Outcomes.pdf  CSR Rating Report.pdf  Doing Good is Good Business.pdf  Future of Corporate Philanthropy.pdf  Future of CSR.pdf  Harvard-CSR.pdf  IBM CSR White Paper.pdf  Impact CSR on Consumer Behavior_Case Study Peru.pdf  Philanthropy as Strategic Choice.pdf  Sirota Corporate_Social_Responsibility_June_2007.pdf  VanCity CR_Future_of_CSR.pdf Charity and The Social Web:  2010 WorldGivingReport_Interactive.pdf  2010-Cone-Cause-Evolution-Study.pdf  2010_cone_nonprofit_marketing_trend_tracker_release_and_fact_sheet.pdf  abrams_research_social_media_survey_0209.pdf  Berners-Lee 2010 W3 report.pdf  Borrell_Social Networking Ad Revenue execsum.pdf  Borrell_Social Networking Ad Revenue.pdf  Charitable-Giving-Effects-of-Exogenous-and-Endogenous-Status.pdf  chronicle article 2009.pdf  Clinical versus mechanical prediction- a meta-analysis.pdf  cone_2010_shared_responsibility_survey_fact_sheet.pdf  Congressional Report Haiti Charity.pdf  CSR Rating Report.pdf  DEI+Study+-+Engaging+Consumers+Online+-+Summary.pdf  Determining-Influential-Users.pdf  Empirical Eval Trust Semantic Web.pdf  Entrepreneur-Article.pdf  Evaluation of Node-Position in Social Netwk.pdf  Facebook and Non-profit Organizations- A Content Analysis.pdf  Harvard-CSR.pdf  I Tube, You Tube, Everybody Tubes -- Analyzing the Worlds Largest User Generated Content Video System.pdf  JOEL_ONLINE_CHARITY_SNAPSHOT.doc  Journal of Interactive Advertising -- SOCIAL MEDIA MEASUREMENT- IT'S NOT IMPOSSIBLE.pdf  Juniper Research.Mobilising, Socialising, Monetising!.pdf  Nielsen Report on Personal Recommendations vs traditional media advertising.pdf  Pew Internet - Older Adults and Social Media.pdf  PIP-The-State-of-Online-Video.pdf  PIP_Adult_gaming_memo.pdf.pdf
  • 44. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 44 of 58  PIP_Future_of_Internet_social_relations.pdf  PIP_Future_Of_Millennials.pdf  PIP_Online_Product_Research_final.pdf  PIP_Reputation_Management_with_topline.pdf  PIP_Social_Media_and_Young_Adults_Report_Final.pdf  PIP_Understanding_the_Participatory_News_Consumer.pdf  Predicting the Future with Social Media.pdf  Pricing in Social Networks Equilibrium & Revenue Maximization.pdf  Professional-and-User-Generated-Content-Rating-using-Context-Information.pdf  PRWeek SocialMediaSurvey.pdf  R2I Social Media Survey.pdf  SAS Social Media Metrics Analytics.pdf  Second Life Social Dynamics & Economic Activity.pdf  SN analysis customer-level revenue distribution.pdf  Social Media Measurement- It's Not Impossible.pdf  Structure and Evolution of Online Social Networks.pdf  Supercruchers Review.pdf  SurveySummary_Social_Media10082008.pdf  syncapse-value-of-a-facebook-fan-1.pdf  syncapse-value-of-a-facebook-fan.pdf  The Privacy Jungle.pdf  The Social Network Business Plan 18 Strategies That Will Create Great Wealth.pdf  The Tangled Web of User-Generated-Content -- Making Copyright Sense of User-Generated Content.pdf  Too Good to Fail _ Tata Case Study.pdf  TUTORIAL ON AGENT-BASED MODELING AND SIMULATION PART 2 -- HOW TO MODEL WITH AGENTS.pdf  USRetailingMoveOnlineExecutiveSummaryDec2.pdf  W3C Web 2010.pdf  Wave4_2009.pdf  Web Transforming Kingdom (UK).pdf  who__s_responsible_cone_2010_shared_responsibility_pov.pdf
  • 45. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 45 of 58 SMRC Addendum I: CSR Reference / Samples:  Blendtec is famous for its bevy of inexpensive “Will It Blend” videos posted on YouTube and shared by millions.  Adobe maintains a list of interesting company related websites and conversations on the social bookmarking site Delicious.  Cadence recently relaunched its website that now prominently promotes the company’s community.  Cisco hosts 12 blogs addressing a variety of audiences for their global business.  Coca-Cola Conversations is a blog written by company historian Phil Mooney that focuses on Coke collectibles.  Dell leverages a variety of social media platforms for customer engagement, including an island in the virtual world of Second Life.  Ford publishes news releases with lots of multimedia content and employs a social media news release format to display them in their newsroom.  Fujifilm recently launched a social network to build a community of photo enthusiasts around its newest camera.  GM uses blogs to communicate directly with its customers around topics ranging from design to green tech.  H&R Block created a Facebook fan site to aggregate its social media activities, engage customers and offer tax advice/resources.  HP used Twitter to power a scavenger hunt at a recent conference.  HSBC built the HSBC Business Network to connect entrepreneurs using blogs, videos and forums.  IBM was the first large enterprise to embrace employee blogging and now boasts thousands of blogs related to every facet of its business.  Intel has also developed many social media touch points with its software communities, which includes blogs, Twitter and virtual worlds.  Intuit sponsors the Tax Almanac wiki, where anyone can find and contribute to this resource for tax information.  Jeep connects with customers via a community page with links to photos on Flickr, the company’s MySpace and Facebook pages and a list enthusiast groups.  JetBlue employs social media as part of its training for JetBlue University, as this video explains.  Johnson & Johnson uses this blog to show another side of the company, with frequent video posts and interviews.  Lenovo launched “Voices of the Olympics Games” to aggregate posts from the athletes competing in Beijing.  Marriott CEO Bill Marriott posts regular updates and stories from his travels to Marriott properties around the world to fuel the content for this entertaining blog.  McDonalds maintains a blog to highlight the company’s corporate social responsibility efforts.  National Geographic uses Google’s new virtual world, Lively, to bring people together around its new show, LA Hard Hats.  New York Times is beta testing a Firefox add-on that allows users to share and comment on stories through a decentralized social network.  Nike started a social community on Loopd to connect athletes interested in surfing, BMX bike racing and similar activities with the brand.  SAP sponsored a global survey of social media professionals to learn more about social media worldwide.  Sears partnered with MTV to create a social network around Back to School shopping.  Southwest Airlines employees share their stories and communicate directly with customers through the “Nuts About Southwest” blog.  Sun CEO Jonathan Schwartz’s blog is the example most often cited for what the CEO blog can be.  Starbucks started MyStarbucksIdea so that customers can submit ideas for the company which are then voted on by other users, the best of which will be implemented by the company.  Toyota started its own virtual world to promote its products in Japan (site is in Japanese).  Visa launched The Visa Business Network application on Facebook to connect small business users and to help them promote their businesses to a larger community.  Wells-Fargo blogs target two audiences; one examines the company’s history and the other is for students interested in getting their finances in order.  WWE has a Facebook application, among other social networking tools and widgets, to bring fans closer to the action.  Xerox blogs address several of the company’s core B2B constituencies.
  • 46. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 46 of 58  Zappos uses Twitter for employees to communicate with Zappos customers about their shared love of footwear  Dominos Pizza credits Foursquare with its UK sales growth.  Monique’s Chocolates in Palo Alto used Foursquare to acquire 50 new customers.  Highland Brewing, a microbrewery in North Carolina, turned to social media to build stronger relationships with beer drinkers. Sounds tough  Old Spice creates personal videos for its Facebook fans and posts them on YouTube.  Norman Regional Health System in Oklahoma spends 30 minutes a day on Twitter and Facebook.  The Red Cross uses tools like Flickr and blogs to connect directly with their supporters.  Colgate used social media to drive engagement and purchases worldwide.  Land of Nod uses online customer reviews to strengthen its community and product offerings (VIDEO).  Cisco continues to evolve its social media practice, creating snackable content internally for its employees.  Vitamin Water let its fans create a new flavor on Facebook.  Dreyer’s leveraged characters from their “Share the Love” campaign to create a mobile game for the iPhone.  HP’s viral video campaign has some solid social media metrics behind it.  The Asia Foundation of San Francisco used Facebook for its recent Books for Asia campaign.  The NBA used social media (Twitter, Facebook, Gowalla) during the NBA Finals.  JetBlue uses Twitter very successfully for customer service support.  Xerox uses social media as part of a product launch (VIDEO – start watching about 2:30 in).  The Brooklyn Museum created a page to connect its Foursquare community.  Leo Burnett’s use of Twitter during Cannes garnered more publicity for the firm than any other stunt in company history.  Spanish shoe company Munich uses its social media presence on Facebook to bring together its community in the real world.  Wells-Fargo uses social media during a financial crisis (VIDEO).  Pb Elemental Design is an architecture firm in Seattle that focused on buildings its social media presence on Facebook.  Intel explains how it has leveraged Facebook to grow their fan base to more than 115,000 fans.  Sharpie has some nice examples of how to make social media work on a small budget (VIDEO).  A luxury hotel in Greece used social media to increase all of its web marketing goals.  Rapper Snoop Dogg made over $200K selling branded clothing in virtual worlds.  Warner Brothers provides a case study of how NOT to engage bloggers and how NOT to react when your strategy misses the mark.  NPR shows how and when their listeners access their content on mobile platforms with lots of numbers.  Air Canada learned a tough lesson about monitoring Twitter and how a crisis can easily escalate.  Mazda launched a Facebook game to promote its new car.  Chesapeake Energy Corp. uses a host of social media tools to stay closer to its customers.  Punch Pizza in The Twin Cities uses Flickr, Facebook and Twitter to sell more pizza.  Einstein Bagels used Facebook to distribute a coupon, and to keep their fans abreast of updates when the coupon link didn’t work.
  • 47. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 47 of 58 SMRC Addendum J: SMRC ‘Go-to-Market’ Plan A. SMRC’s Coordinated-Accelerated Launch plan (targeting the lesser active membership of the 200+ most popular 501(c)(3) charities): 1. SMRC identifies the causes which, together, make up the philanthropic field and selects those charities, non-profits and foundations which best represent and support those causes. SMRC also identifies the mix of business, social organizations (media, network and societies) and celebrities, interested in either generating social content and/or cause marketing. 2. SMRC approaches those charities and sponsors and asks them to sign a Letter of Intent. This validates that the sponsor understands our intent & processes, and is willing to non-exclusively accept donations for their follower’s content and response to research. As a sign of good faith SMRC may offer to co-sponsor a local fundraising event or coordinate a volunteer effort. 2. According to the Letter of Intent, when SMRC determines the charitable field is sufficiently represented, member sponsors agree to inform their own donor/subscriber and follower networks (via mailing list, phone, mail, syndicated and/or via the social media), that they are now accepting donations from SMRC, a social service which augments member pledges, and invites them to check SMRC out. a. Agree to accept donations from xxxxx.com b. Agree to recommend SMRC to their CSR and celebrity backers c. When SMRC determines the charitable field is sufficiently represented and gives the word, agree to notify their own networks of donors/subscribers that they are now accepting donations through SMRC and invite them to check SMRC out and, if so inclined, create a profile. This ensures that  More than 10 Million invitations go out at once, jumpstarting the network’s membership, user-generated content & knowledge-bases  The recipients of those invitations all have proven charitable credentials and profiles – the likeliest not only to “accept” the invitations but to “stick,” to participate and to invite others [homogeneity around charitability]  SMRC avoids the uncertainty and growing-pains associated with low numbers of early adopters and the resulting death of early content. A. Charities – As seen in SMRC’s Coordinated-Accelerated Launch plan, charities power SMRC from beginning to end. 1. SMRC’s Charity Liaison team solicits, vets and supports charities. New charities may apply at any time. Applications are available on SMRC’s website and from SMRC market-partner-sponsor Slideshare presentation, 2. SMRC members may nominate any recognized 501(c)(3) at any time. Charities with highest nomination rates receive highest priority.
  • 48. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 48 of 58 3. Participating charities are granted access to SMRC’s knowledge-base free of charge. 4. From time to time SMRC may initiate contests or campaigns to enlist new charities. B. Corporate [Socially Responsible] Sponsorship 1. Generation Zero of corporate sponsors has established relations with charities. 2. SMRC’s Corporate Liaisons team solicits vets and supports corporate sponsors. Corporate Sponsors can apply on SMRC’s website or from SMRC’s market-partner- sponsor Slideshare presentation. 3. Corporate Sponsors can subscribe for access to knowledge-base, can add their own market research questions, pay by response-rate, etc. 4. Non-participating non-profit organizations can subscribe for access to knowledge-base at “preferred” rates. C. Celebrities 1. Generation Zero of celebrities has established relations with charities. 2. SMRC’s celebrity liaisons team solicits vets and supports celebrity advocates. Celebrities can apply on SMRC’s website or from SMRC’s market-partner-sponsor Slideshare presentation. 3. SMRC members may invite or recommend celebrities at any time. 4. Participating Celebrities can subscribe for access to SMRC’s knowledge-base at “preferred” rates, can add their own survey questions, pay by response-rate, etc. D. Member-invitations – By design SMRC’s members dictate the direction and evolution of the network. User-recommendations and invitations, more than any other vehicle, promote and grow SMRC. E. Other marketing 1. Electronic media marketing – SMRC originates and disseminates a steady flow of viral content across the web. 2. Traditional media marketing – from time to time SMRC may instigate print or broadcast publicity campaigns.
  • 49. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 49 of 58 SMRC Addendum K: SMRC’s Behavioral Analytics, Research & Workflow From: Phillip R. Nakata CBO & Founder, dba SMRC c/o 1009 Tantra Park Circle (virtual office) Boulder, CO 80305 Re: Underneath SMRC (Architecture & Design): Behavioral Principles and Market Best Practice Models - Mapping the social-emotional patterns, anomalies and social influences of the social web (WILL-LIKES & more) INTRODUCTION – Underlying SMRC’s incredibly simple execution,: For Followers: 1) Registering their media and charities; 2) Creating content/feedback on their sponsors’ and other sponsors’ media (see graphic), 3) Viewing their opportunity reports ‎in their free time, and 4) Inviting others to register, or, For Sponsors: 1) Inviting their followers and other sponsors; 2) Developing content promoting feedback; 3) Targeting prospects by charity affiliation with qualifications, for reward fulfilling their interests (WILL-LIKES), associated with 4) Adding opportunity links from their ‎promotions to SMRC’s research server; matched to those people’s interests/WILL likes, ‎Social Market Research for Charity’s (SMRC) analytical models and process workflows:  Capture the socio-emotional character/profile/influence of the PUBLIC social web,  Establish the business monetization of social content research (to create matched collaboration, targeted qualification, as an incentive to noninvasive listings in an opportunity-database),  Provide both altruistic and financial incentives for research into sponsored promotional retention, that is matched precisely to each member’s active and on-going interests (qualified by sponsor requirements), and co-branded with their favorite registered charity1 .  Significantly stimulate NEW and competitive cause marketing eBusiness, while never requiring purchase.  Inspire and motivate SMRC sponsors, who will now know that their offers, co-branded with each user’s favorite cause(s), will be precisely relevant, educational, scientifically engaging and never invasive (e.g. totally personalized and co-branded),  Use content-based linguistics, AI (multi-logic) Configurators and social influence profiling via Web 3.0, 4.0, Mobile ‎Video, Data Warehousing/Mining and Cloud technologies, Are based on the following behavioral principles and documented observations , respective to: A. The Individual: Creating anonymity and value first for the user, that can be safely shared to create additional opportunities that matches each user’s interests in order to support each user’s favorite social causes, with the equal value in rewards, without requiring a purchase. In order to create the value stated, SMRC analyzes: 1. The emotional character of everyday social content topics/artifacts is initially based on social taxonomy processing, emotional linguistic/ NLP, and ‘sentiment analysis’ (feature/aspect) Configurator technologies which associate the emotional status (similar to eastern context-based languages), of any topic, in the context of “a conversation”, often spanning several previous statements/sentences (as well as past conversations) with the same social parties/ followers.
  • 50. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 50 of 58 o Though similar in spirit to social media’s “Likes”, Tweets, favorites, stars, etc., along with giving equal value to positive or negative content, this service can distinguish “how much” and “why” (what other factors) are related to what each person precisely likes and/or dislikes. SMRC also gathers from each member’s authorized social media, without any personally identifying information, any public social-demographic profiling (e.g. Lifestyle, location, gender, etc.) and related content (like the weather). o For public (not password protected) social content that produces biometric signatures (ex: audio/ voice, high quality video), these signatures will be used to rate the content artifact topics of these media, without revealing identity. o For members who register for SMRC’s “Personal Avatars” (Phase II), which will embody each person’s complete public/social memory, SMRC will factor every content artifact/topic’s rating, respective to each persons’: (i) avatar; reflecting their personality profile/simulations (which are constantly updated with on-going, in-depth AI-based dialogs, rating one’s emotional reaction to the most popular topics), and each persons’ (ii) library of multi-media content artifacts, each rated: emotionally (as well as to the 5 senses), to the other people involved, to the date and time, along with the artifact’s location (as well as with facts like what was the weather), correlated to reflect an accurate emotion. 2. Common ‘themes’ of what each person will like, naturally emerge within individual categories of each member’s favorite content artifacts (topics), as well as across categories of each member’s favorite content – made up from common matching secondary characteristics: o Examples of common themes include: (a) The common characteristics of 3 of your 10 favorite books, (b) Common characteristics between your favorite restaurant type, and the nationality or genre associated with your favorite content artifact in another category. o This is the “Ah-Ha” moment, that people sometimes experience when they recognize these “common themes” of secondary characteristics associated between the things they each really like – in a category, or between categories of interest (e.g. Did you ever realize the 5+ common factor sets between some of your likes?). 3. The priority (relevant importance) between common themes is based on the number of common secondary factors of each theme, and the overall emotional character rating of the content artifact under analysis. Thus: o A theme which contains 5 common secondary characteristics has 5 times the importance as a theme with only one matching secondary characteristic. o A theme that provides fulfillment for several other themes is proportionally of greater importance. o The validity of a theme is based on a minimal amount of monitoring, of the aggregate content. B. Social Influence: Each person is significantly influenced in their interest in any topic, based on their friends and ‘trusted’ associates’ profile, by matching common themes: 1. The degree of closeness/ influence from friends and trusted associates are directly related to the number of common themes they share and the depth (2nd common characteristics) of each common theme. o A person is 3 times as likely to be interested in a new topic suggested by a friend or stranger who shares 3 similar favorite themes (across multiple categories) – as compared to another friend or stranger with whom you only share one common theme of interest.
  • 51. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 51 of 58 o A person is 3 times as likely to be interested in a new book suggested by a friend of a stranger who shares 3 of your favorite books, as compared to another friend or stranger with whom you share only one common book. 2. This is what most people naturally do (e.g. The way they think/process information), on a sub-conscious level, weighing the influence of friends and trusted referrals, in the later phases of any major decision based on the number and depth of the common themes they share, specific to a topic, but similar to the the depths of their interpersonal relations. 3. Find My Doppelgangers’ Favorites: From the millions of profiles of each persons’ precise “likes/will-likes”, SMRC will find each persons’ doppelgangers (e.g. People sharing 6 or more of the same favorite WILL-LIKES). The potential that you “WILL-LIKE” your doppelgangers’ new interests, will be directly related to the number of common favorite themes you share with the other person(s). 4. People’s social likes to dislikes (and how much) of social artifacts/topics, will become the standard definition of measurable, trade-able value for any content artifact/ topic in the world (of all SMRC sponsors and members), as the definition of any artifact’s socially trade-able value, is directly related to the supply-demand equation of (1) How many people know about the artifact, and (2) how much one, some or all, want/like the artifact. 5. Knowing what themes each person “WILL-LIKE” as well as what themes (or quirks) each person intensely “dislikes”, will at a minimum, double the probability that the “Douppelganger” application above, will find for each person, new themes that they “WILL-LIKE”. Likewise, all services that match their followers, with other people’s content, based on their common “Like” (tags), would benefit from adding a “Dislikes / Idiosyncracies” profile, per (& across) classes of content, for each follower. 6. People’s personal philanthropic interests will perfectly reflect the memberships’ social ethos and the incentives (+rewards of equal value) that make it a sustainable design, based on the value of content, and participation in research matching each person’s interests. 7. Sponsors and members, together, locally and globally, co-supporting their common social/philanthropic interests, will generate a minimum of $0.60/day for member’s anonymous social content, and $5-10 per hour (in custom donations +rewards) for their response to research matching their interests, that does not require purchase. C. Sponsors & Charity: Provide goodwill and personal rewards of equal value for content research and sponsored research precisely matching a members’ interests, co-branded with each member’s favorite charity, for loyalty and/or conversions: 1. Will generate as the “host” to their followers, without cost, $30+ per year per followers (as compared to just members or subscribers) in donations to the sponsor’s favorite charity and trade-able, deductible rewards of equal value, while the average follower generates $600+ per year for their favorite charities and rewards of equal value – based on their everyday social content and for responding to rewarding behavioral research matching their interests. See enlarged graphic for detail
  • 52. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 52 of 58 2. Currently, over 46% of people who interact on-line are either advertising insensitive (ignoring) or advertising-adverse (reacting negatively), while over 75% of the market is interested in co- branding support for local charities with all forms of commerce and research. o By rewarding attention and recall topics that are precisely matched to each person’s undeniable interests, co-branded with each person’s favorite social causes, rewarding attention from qualified prospects, without requiring purchase, will generate at minimum double the net returns, from over four times as many people responding. o Though not supporting any invasive advertising, SMRC sponsors will provide their followers to opt-in to receive only opportunities that are precisely matched to their follower’s interests (validated and qualified to their social and Geo-demographic profiles, and), delivered as noninvasive real-time custom opportunity listings each member reviews in their free time. o By adding social-demographic qualifications to opportunity listings matching members’ interests, this self- qualifies responders for sponsors, while ensuring people do not receive spam/offers that they cannot take advantage of. 3. At $0.03 per qualified anonymous profile, along with $1-2 on average for 10+ minutes of the un-divided attention of such qualified prospects, this will generate significant business conversions from the 1 60%+ of people who will try and switch brands, based on the support by a sponsor, co-branded with the prospect’s favorite charity. o The net result of registering a sponsor’s follower(s) (creating value from your follower’s content), at no costs for cause marketing, should be at minimum, a doubling of web business and/or memberships for the sponsor. o The net result of additionally cause marketing (at $0.03 per profile by charity, and $1-2 in value per qualified research response), should be at minimum a doubling of net business revenues, and 4X the overall response to your noninvasive custom promotions per prospect. D. Additional features regarding SMRC content and research monetization: 1. All Hosts (sponsor or member) receive 4% of the on-going donations’ and rewards’ value generated by friends and social associates who respond to the host’s invitation to register with SMRC. 2. Without any costs to the sponsor or host, or rewards for themselves, they must give away the same amount of custom donations and the equal rewards value to socially worthy causes. 3. Devoid of any private identifying contact data, all sponsors will receive monthly reports, sorted by each sponsors’ follower’s charity affiliation, of that charity group’s social-topic profiling (all major categories of “LIKES”) and socio-demographics profiling. This format (providing only contact via SMRC’s opportunity reports) is identical to the content acquired by other SMRC cause-marketing sponsors who all promote noninvasively (e.g. Either by matching offers in the opportunity reports, or by only offering customized promotions to SMRC members). 4. Testimonials (positive or negative) generate a minimum $5 average in value (as donations w/ rewards). See enlarged graphic for detail
  • 53. Social Market Research for Charity – 355 S. 38th Street – Boulder – CO - 80305 Page 53 of 58 5. ECommerce post purchase or usage reviews generate 5% of the sponsor’s price as donations to the prospect’s favorite charities along with the equal value in rewards, that are given to the prospect (as compared to the Sponsor who normally receives the charitable deductions) as true generosity, in exchange for on-going customer loyalty, reinforced with every sponsor interaction (research or purchase). E. The Bigger Picture: 1. Research / Insight/ Models: Using this data, you are able to ask questions like "How would MY followers feel about .....?" or "How would followers of this popular, local social cause/charity, feel about ....?", and receive an accurate report of the related patterns, anomalies and social influences that together, profile/answer the query. Dislikes and Why: Mapping the emotional character of everyone’s social content for the common theme ‘extremes’ (LIKE and DISLIKE), will allow you to also ask “Why do followers of this social cause dislike ….., and why? – or, what are the associated patterns, anomalies and social influences/conditions? Identity Authentication: With such an extensive profile of each person’s preference/personality, social Geo- demographics, and habits, this information could be securely authorized by each person, for use by their personal identity protection services – to provide additional protection and notification of potential fraud/identity-theft. Avatars for (a) The elderly and (b) At-Risk Youths: Representing each person’s historical collective of emotional responses and associated social influences on virtually any social topic, avatars/simulations integrated with modularized computer assisted learning, would be of great social and personal value to these classes of users. 2. Channels by Topic & Affiliation to Charity: Using this service, SMRC sponsors have a non-invasive channel for promotional research offers (see next) that precisely matches the patterns and anomalies related to people’s interest in a sponsor’s offering/solution, to the followers of any popular social national or local cause, (i.e. With that charity in a SMRC member's charity profile), AND the followers of those followers (who share the similar complex themes of interest and charities). Using SMRC's 2 year historical files, the analysis of the prospective market (by charity affiliation) for these offers/listings, should be easy to secure (see the prior paragraph). Qualification: Promotional research opportunities, that don’t require a purchase, are self-qualified by sponsors (typically from the related in-depth social-demographic profiling), and reward attention and recall (as multiple-choice quizzes, no surveys) to promotional materials/ content that is precisely matched to each person’s interests (and social spheres of influence). Net: Qualifed leads, No spam for Members. 3. Traffic/Content/Response: The mass increase in traffic and in response to promotions, are from people seeking, or responding to, opportunities to generate original content/feedback to content that matches their “WILL-LIKES” (interests) for donations +rewards), offering double the value generated for double the participation or recall. Customized content and research opportunities (for charity +rewards), are provided as on-demand reportage. Conversions: Expect as much as a 46% new increase, from the on-line markets that hereto, responded negatively to invasive advertising, and as much as a 60% change in brand loyalty, from competitive sponsors, co-branding with the favorite charity of each of their prospects. Any questions? – Please feel free to contact me by phone, email or fax. Sincerely, Phillip R. Nakata, Chief Business Officer and Group Program Director, SMRC (Social Market Research for Charity): (720) 432-5470 (Voice/SMS/Message); 720-569-7703 (Cell); 720-263-5036 (Fax); www.linkedin.com/in/philliprnakata http://www.socialmarketresearchforcharity.org; phillip.nakata@socialmarketresearchforcharity.org; NOTE: This document is available at http://bit.ly/smrc-analytics101 or Addendum K at http://bit.ly/smrctech
  • 54. Page 1 of 5 Think you know everything about identity protection? Copied from www.socialmarketresearchforcharity.org/index3a.html#identity The topic of “Identity Protection”, covering real and social identity(s), includes monitoring, alerts, credit & content freezes (limited access), reimbursement insurance, digital identity/ resolution, restoration, reputation management (this category; primarily for businesses), and “best-practice” advisories - requires a multi-step introduction, as this exploratory discussion reveals the un-met, compelling need for ‘social web services’ that: “Help protect everyday people’s social (and real) identity(s); Focuses on the elements of social fraud, resolution & negative content; While generating personal, social & philanthropic value from people’s everyday social content, for worthy social causes; The analytics of which, entice sponsors to precisely match people’s qualified (validated by their social discussions), personal and philanthropic interests; delivered non-invasive on-demand --- e.g. Without the risk of being associated with any identity content about a qualified prospect, SMRC will generate 100% personalized promotional research opportunities (goodwill & rewards-based, précisely matched to each person), delivered on demand (browser extension), as well as through a sponsor’s site (i.e. SMRC sponsors can produce 100% personalized, 1st or 2nd party, precise promotion via OpenX). No cost to register. No purchase is required. SMRC’s identity discussion is presented as a series of subject categories that are expanded upon in the pages that follow. Respectively, the first layer of the presentation is below. On the website, the links (underlines) expand the sections, whereas with this document, it is only necessary to go to the next page(s). IDENTITY - Social and Real Protection (out of profile activity - preventative identity protection): I. How it Works (Page 2): While protecting each person's identity (for their authorized content, even from SMRC, with unbreakable one way encryption & biometric security), the service can monitor all public social content, for suspicious out-of-character/ profile activity, associated with either with (A) one of the member's social identities, or (B) the member's REAL identity (as name, SSN, phone, address, email or other reference). Understanding the emotional character of content, SMRC can also monitor for 'negative' (dislike) content, that references each person's (or brand's) real or social identity(s). II. SMRC's Approach to Identity Protection - (Page 2) The problems and the solutions from monitoring EVERYTHING, to alerts from in-depth profiling, to best practice resolutions (fixing problems): III. Market (Competitive) Approach to 'Identity Theft Protection' (Page 2) - from protection of your 'Real Identity' (financially) to distinguishing between others with the same name (e.g. Digital Identity) to 'Reputation Management' - the full story (fear; numbers/percentages; real identity; 1%/ households): Everything you need to know about identity protection market offerings. IV.SMRC's Preventative Identity Protection Services - (Page 3) about early warning: monitoring & alerts; all topics; in-depth comparative profiling: By contrast, SMRC's services are designed to be preventative, filling in the missing searches that catch problems before they happen, for real and social identity(s), scoping all topics in discussion, as compared to just purchases or bank accounts. SMRC addresses the four (4) types of problems “associated” with identity protection: (1) Real Identity Fraud, (2) Social Identity Fraud, (3) SPAM, and (4) Negative Content. V. The Effective Cost of Identity Protection (Page 5):
  • 55. Page 2 of 5 Copied from www.socialmarketresearchforcharity.org/index3a.html#identity IDENTITY - Social and Real Protection (out of profile activity - preventative identity protection): I. How it Works: While protecting each person's identity (for their authorized content, even from SMRC, with unbreakable one way encryption & biometric security), the service can monitor all public social content, for suspicious out-of-character/ profile activity, associated with either with (A) one of the member's social identities, or (B) the member's REAL identity (as name, SSN, phone, address, email or other reference). Understanding the precise emotional character of content, SMRC can also monitor for 'negative' (dislike) content, that references each person's real or social identity(s). This is only possible based on in-depth, ongoing profiling (covering all topics, with friends and followers, over years) that knows exactly what topics each person really dislikes, along with the topics each person really likes, validated/ confirmed further by their reference to each topic in their ongoing social discussions. Each flagged incident will include a link to the referenced media item/ artifact with this optional service. II. SMRC's Approach to Identity Protection - The problems and the solutions from monitoring EVERYTHING, to alerts from in-depth profiling, to best practice resolutions (fixing problems): Because of the redundant nature of the Internet (which insures it stays up), that backs up and re-distributes 2nd copies of everything (e.g. like the 'Wayback Machine' [web.archive.org], Torrents, rss, blogs, search, archives, groups, etc.), it's impossible to 'protect' each person by attempting to lock up content. By contrast, the 'best practice strategy' (process) is to aggressively monitor the Net for potential harmful content that is apparently related to the individual's real or social identity(s), and to aggressively respond based on the type of problem - e.g. identity fraud or negative comments related to the member's identity(s). For solutions, see "Solutions for Identity Problems", under 'SMRC's Related Security Policies' below. The total range of invasive social media related problems that SMRC will address can be seen HERE. III.Alternate /Market Identity “Theft” Protection (fear) Approach: - from the protection of your 'Real Identity' (financially) to distinguishing between others with the same name (e.g. Digital Identity) to 'Reputation Management' - the full story (fear; numbers/percentages; real identity; 1%/ households): Everything you need to know about identity protection market offerings  SMRC's Identity Protection Non-Compete Disclaimer (SMRC provides assurance and scope, not insurance): SMRC's identity protection is not in competition to current 'identity protection services' (although its' findings will most likely overlap), whose services are typically limited to (1) monitoring your credit reports, (2) profiling your critical identity information (e.g. SSN, bank information, your name, etc.) across the Net, file-sharing sites, and financial networks, with a focus on monitoring for new saving and checking accounts in your name, and (3) providing bonded 'guarantees' of protection (or built in limits on liability, for example on Internet transactions). Furthermore, some services work directly with the credit card companies, to settle fraudulent accounts. Identity theft protection plans, in total, address (a) monitoring, (b) fraud alert, (c) credit freeze, (d) reimbursement insurance, (e) resolution and (f) restoration.  Their Value: Most of these services are also provided by many banks and financial institutions (including insurance companies) for a fee or at no cost for being a member. Similar to other forms of insurance, they mostly all offer acceptable risk vs. returns, but can't stop the problems from occurring, as with the many fraud cases associated with Lifelock's promotion (e.g. 13 major cases, involving $million+ of fraud). Respectively, if you're looking for 'identity protection (reimbursement) insurance' that includes monitoring for new bank accounts that SMRC can't see/monitor (as they are secure and not publicly available except in your big agency credit report), or services that work with the credit card companies to settle fraud (resolution/restoration), you should get it from your bank or one of these services.  The Real Story (It's Not that Big a Problem): While 9 million (or 2.7% of the population) people fall victim to identity theft (socially and financially) each year, allowing identity protection company marketing to make heavy-handed claims like "One of the fastest-growing crimes"; "9 million Americans fall victim"; and "You could already be a victim.", less than 1 percent of households reported someone opening unauthorized credit, stealing their tax refunds, or tapping into their medical benefits, according to the U.S Justice Department. The main service that these companies offer is monitoring the big credit bureaus -- Experian, Transunion and Equifax -- for new credit requests in your name. But you can do that yourself. Of the ~37 million articles on Google related to 'Identity Theft Protection', the general recommendation is to get an annual credit report from each of the three reporting bureaus. It's free, and if you stagger your requests, you can get a fresh report every four months.
  • 56. Page 3 of 5  The Social Identity Story (Is a Big Problem): While less than 1 percent of households reported "real identity fraud" (bank, taxes, benefits fraud), social identity problems pose the greatest threat to 'Millenials', affecting over 30% of Generation Y, age 16-35 annually, as reported by the Associated Press, that includes (a) spoofed/hacked accounts (primarily from people either sharing their passwords, or as stated before - by being lazy with their ID and password security), and (b) the same real or social identities (e.g. Names) associated with different people and accounts (e.g. Content from one get incorrectly associated with the other). 1. Digital Identity: Of the many companies associated with 'digital identity', most offer either (a) 'Real Identity' (with social monitoring) protection services (primarily monitoring credit reports; above), or (b) people-search type services (e.g. whitepages, reverse phone, email/address, background, criminal, public, genealogy, property, employee information), that now incorporate looking up each person's social media postings, and (c) charge a fee for extended search services, that often include (i) restricting posted content elements (e.g. Spokeo), or (ii) claiming/ dis- claiming association with content by the 'same name' or id (e.g. Providing resolution for problem 'b' above). 2. Reputation Management: There is also a third 'breed' of companies (ex: Reputation.com, Brand.com, Integritydefenders.com @$100+/month), addressing negative social content, listed under 'reputation management', claiming to 'hide' or remove published negative content on the Net (first search page). Unfortunately, for the individual, of the many tools listed under 'Reputation Tracking' tools, most are for businesses; only 'Reputation Defender' (at the time of this writing) offers services to track people's more personal social postings (at a reasonable cost), as compared with an 'individual' blogger (who is really a personal business) IV. SMRC's Preventative Services - about early warning: monitoring & alerts; all topics; in-depth comparative profiling: By contrast, SMRC's services are designed to be preventative, filling in the missing searches that catch problems before they happen,for real and social identity(s), scoping all topics in discussion, as compared to just purchases or bank accounts. For example, with identity fraud, before creating false financial accounts (to be 'bounced' later) using stolen identity information, it's typical to set up other Internet and/or physical 'accounts' (ex: memberships) using bits of the stolen identity, that create 2nd references that are used to further perpetrate the fraud. Knowing an in-depth profile of likes & dislikes, across all topics and covering all media that SMRC can access publicly, provides the best opportunity to uncover any potential harmful content that is 'out of profile'.  Social Identity Protection Example: By monitoring for each person's social identity(s) in addition to their real identity elements, SMRC will identify any "spoofing" (hijacking) of a person's social identity. Before you think, "that's not important" or "that doesn't happen much", consider the 18 year old in Texas, who has been held without trial by the government (case: imminent threat) since February 2013 for a remark (from a movie) he made on Facebook, that ended with the Internet phrase "LOL JK" (laugh out loud, just kidding). For more on that story, see our press release link on the SMRC's home page.  Advisory: The most important security precautions related to identity that each person should do now, in addition to(a) putting a security freeze on your credit reports (see more under 'security policies'), is to (b) insure that their Facebook (TwitterYouTube, etc.) id and passwords are not the same as they use for any sensitive information accounts - This is the primary way sensitive information is compromised today - because people are lazy about their security - and by that admission, fuel the largest industry in the world (one of the counterparts to identity theft - using stolen credit information to create more bad credit liability). By contrast, very little sensitive content is hacked from sites that carefully observe all known hacks. For handling other 'identity problems', see #3 in the next section.  SMRC Data Security Access Policies - 1 way encryption & biometrics access:  Processing Content (Enterprise Object database: File level access): After each processing scan of authorized social content, a copy of the analyzed artifact (emotionally rated themes, social relations, philanthropy, location & demographics) stripped of any real or social identity content, is made available to SMRC. The user`s data is then encrypted with a one-way (hash) encryption, and rotating keys where the long passphrase is never shared (even with SMRC or the persona`s owner). Combined with biometric access security (next), this insures that the security to protect the analysis contents, is never compromised by anyone - even from the owner attempting to give access to their best friend - as that friend cannot replicate the owner`s biometrics.
  • 57. Page 4 of 5  Access to the analytics (search pattern apps: record level access) - through the five (5) search pattern applications will be controlled through (a) one of multiple formats of biometric security (typing, audio, finger, eye & many more) and (b) in-depth profiling specific to each person - not as a static set of information that can be compromised but rather from a combination of (i) long term unrecognized behavior and (ii) recent minor deviations from a profiled pattern, where (c) the accuracy of the security method applied is directly related to the sensitivity of the content to be exposed. SMRC`s Founder was the marketing manager for one of the first U.S. software patents - "The Electronic Signature Lock", funded by the National Sciences Foundation, where the way a person types their own name (pressure, timing, inter-timing, emotion) is respectively unique (1 in 10 million), changes over time (e.g. is never identical) and is linked directly to any, of each person`s individual biometric signature. Advancements in directly related VSA applications over the last 30 years since that U.S. patent, now allow for precise deviations of emotions distinguishing between for example, extreme passion and fear, specific to each individual.  Handling Identity Problems:  Real Identity Fraud: For financial fraud related to commerce (or false accounts anywhere that use stolen identity content), the best practice for such fraud, is the same as for any financial crime, that includes reporting the fraud (with evidence) to (a) the police, or the appropriate government enforcement agencies, (b) the major credit bureaus - see below, (c) your bank and the respective financial institution (or merchant or credit card company) related to the fraud case, (d) the management of the site with the fradulent material, and to (e) the Internet monitoring and reporting services (with any related tracking information that is different - e.g new email address, new address, alternate phone number, etc.). If you have reason to suspect a security breach, you can place a 90-day fraud alert on your credit report that warns lenders to be more vigilant about granting credit. Consumer Reports says for added protection, place a security freeze on your credit report so that lenders you don't already do business with, like banks, won't have access to it. That makes it more difficult for crooks to open new accounts in your name. But if you apply for new credit, be aware you'll need to temporarily lift the freeze, which could involve a small fee.  Social Identity Fraud: If someone manages to 'spoof' your social id (meaning they have the password associated with that id), you should (a) scan your system for viruses and/or malware first; This is how many hackers get in, (b) delete your cookies, making sure that you have any associated passwords that these cookies contain saved (or don't delete those cookies), c) Change your password in the associated media, and (d) use a secure option (e.g. https) to access that site, if that option is available. After that, you may have to do some 'damage control' regarding any content submitted by the spoofer (see below), as well as contact the site's administrators where your identity was compromised. While most anti-virus programs scan for some malware, SMRC recommends the use of Spybot. By contrast, the quick scans of Malwarebytes only catches a portion of the those items in startup (of the system or program initiations). Their startup analytics also allow for a quick review of startup and key executables of data gathering software (patterns).  SPAM: Many of the links that contain malicious code (which gathers identity content as compared to session content, e.g. your place in a process), are delivered through unsolicited spam email. Respectfully, a Gmail's secure (Https) web access (as a Gmail email address) and automatic spam filters provide a secure environment, without spam, on-line, as well though an email client like Outlook. If you are not using a Gmail email address, but want to leverage Gmail's spam filtering capability with your non-Gmail email address, you can have your current (non-Gmail) email address forward its' messages into a Gmail email account, which is afterwards forwarded back to your email client. Google the words "Gmail Extract Email Addresses Software" and use that software to extract the email addresses from your Gmail Spam folder, into (as an import) your Email client program (e.g. like Outlook). Alternately, you can export the email addresses in a Gmail spam folder by selecting up to 25 messages at a time in the Gmail spam folder, then selecting "more" "Filter Messages Like These", and then copy and paste the emails (separated by "OR") into notepad, editing out the "OR" statements, and ending each line with a carriage return - then import that file into your email client's spam filters.
  • 58. Page 5 of 5  For Negative Content: Rather than respond to the invalid negative comment directly (e.g. By the accused), let your other friends and followers respond. Similar to advertising where 70%+ of people today believe the word of ‘trusted’ third party strangers over the advertiser's claims, the response from your friends and followers is much more powerful than the individual responding in defense. Respectfully, if 10 friends respond negatively to a negative comment, it turns that negative comment into a favorable one, in defense of the negative comment (showing the world, that the negative comment was slander as compared to being true). V. The Effective Cost of Identity Protection: It seems like SMRC is "paying" (as donations +rewards) people for the opportunity to protect themselves, using their own content, where the more they participate, the better their protection gets (what a novel concept). With no out-of-pocket costs for members, SMRC's service costs are based on 8% of the SMRC total derived research value ($0.03, $1-2 & 5% units) for their content, research response (precisely matched), and networking activity (at set rates). From the 5 personalized search pattern applications, the majority of which are totally user-centric (Precisely Personal, Social simulations, Social World/Doppelganger & Identity), the feedback from each continually adds value to (A) the identity search pattern (#5 search, growing in value daily) and (B) the sponsor match and qualify search pattern (#4 search), that funds all the system`s content, research, commerce (post-purchase research), 501-c3 funding and charitable/deductible rewards - without requiring anybody purchase anything and never producing spam.‎ Author: Phillip R. Nakata, SMRC Founder & CBO; 720.569.7703; phillip.nakata@socialmarketresearchforcharity.org

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