3. 3.5% of Time Spent
19% of Ad Spend
Print
Digital47.2% of Time Spent
30.5% of Ad Spend
THE MEDIA MEGATREND
Digital is disrupting all forms of traditional media, especially print
Source: eMarketer
ATTENTION & AD DOLLARS ARE ALL MOVING TO DIGITAL
4. The magazine business model is
predicated on advertising. Advertising
always follows eyeballs and today
eyeballs are increasingly moving from
print to digital devices.
This is bad news for the millions of print
publications that must now transition to build
significant digital audiences and revenue
streams, or be left behind.
This deck is dedicated to the economic upside
of solving the digital readership and
monetization problems.
THE OPPORTUNITY IN 65 WORDS
5. Digital Publishing 1.0
Print Replicas
(aka “Print Under Glass)
Formatting is removed to create a
plain scrolling web pages where
the text is more easily read.
Print edition is shrunk down,
typically requiring readers to
zoom in order to read.
Digital Publishing 1.1
Responsive Design
Digital Publishing 2.0
Digital Native
MagTitan delivers the readability of
responsive design with the beauty of
print, by dynamically adjusting page
design on the fly to fit the reader device.
No zoom necessary.
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DIGITAL MAGAZINE TECH EVOLUTION
6. • Each page displayed in hundreds of versions for device appropriate viewing
• Compatible with all existing digital devices
• Preserves beautiful, full-page design for editorial and advertising
• Interactivity
• Animations
• Video (Live, on-demand & as background)
• Browser based, not locked behind apps
• Embeddable on any 3rd party website
• “Web Window” tech that displays websites within the magazine
Product #1
MagTitan
TM Today’s most advanced software for
creating and reading digital magazines
Tech Breakthroughs Include:
7. • Ads morph in size to be easily read on every digital devices
• Pay-Per-Performance advertising model, advertisers only pay when ads are verified as viewed
• Each advertiser gets an infinite number of interactive full-pages to tell their story
• Lightning Leads tech for 1-click lead generation
• Advertisers name own budget. When funds used, Ad Einstein replaces the ad
• Ad Builder creates professional ads with drag-and-drop ease
• Video (Live, on-demand & as background)
• Advertising Animations
• Credit card purchases consummated within ads
• “Web Window” can bring advertisers website into their ad for lead generation & secure sales
consummation
Product #2
AdEinstein
TM
The first ad platform for
creating, managing and serving
performance based magazine
advertising
Tech Breakthroughs Include:
8. Performance based advertising is what made Google worth $317B today. Of Eleven
Media’s software and ad platform brings that capability now to magazine publishers.
Advertisers in publications using MagTitanTM and Ad EinsteinTM only pay when their ad
has been verified as viewed. This creates a powerful value proposition for advertisers and
transformed business model for publishers.
Grid Pro Forma Example at: $1.00 per view
PUBLISHER’S DIGITAL ECONOMICS
9. 30,000
$5,000
30
$150,000 per issue
20%
$30,000 per issue
90,000
2
$180,000
40%
$72,000 per issue
Circulation:
Print Page Rate:
Print Ad Pages:
Print Revenue:
Profit Margin:
Total Profit:
Digital Readership:
Ads Viewed Per Reader:
Digital Revenue:
Digital Profit Margin:
Digital Profit:
AD EINSTEIN MODEL
Annual Profit $1,224,000
PUBLISHER’S BUSINESS MODEL – A COMPARISON
OLD MODEL
Annual Profit $360,000
Circulation:
Print Page Rate:
Print Ad Pages:
Print Revenue:
Profit Margin:
Total Profit:
Digital Readership:
Ads Viewed Per Reader:
Digital Revenue:
Digital Profit Margin:
Digital Profit:
30,000
$5,000
30
$150,000 per issue
20%
$30,000 per issue
90,000
2
$0
0%
$0 per issue
10. THE TEAM
Larry Genkin
Chief Executive Officer
Declared "a great marketing mind" by business legend
Robert Allen, Larry is an experienced entrepreneur
and publishing visionary who is credited with creating
the Open Source Publishing business methodology.
He has captured the respect of Billionaires, CEO's,
best-selling authors and marketing gurus. He's
personally owned 7 businesses in 6 different industries
and has created over 260 joint ventures, including
over 100 in media alone.
In 2010 he was responsible for business development
for Bill Bartmann Enterprises, growing the company
from 7 employees to 160, with sales of $15 million
within one year, culminating with reaching #234 on
the Inc 500 list of fastest growing companies in
America.
As CEO of GSG WorldMedia & Larstan Publishing
he's published magazines, books, ran events (live &
virtual), developed software, pioneered new market
research methodologies, and launched an online radio
& television network.
Stan Genkin
Chief Operating Officer
Stan is a lifelong entrepreneur, having owned 7
different businesses in 5 industries over a 40 year
business career.
As COO of Larstan Publishing, Stan was
responsible for aggressive expansion from a small
"mom & pop" publisher into a company with
business units in magazines, events, book
publishing, white papers, market research, podcast
production, media syndication & advertising
networks.
We think Stan's "official" title should be "glue" as
he's the driving force that keeps everything
together.
Edward Tyler
Vice President, Business Development
Edward Tyler’s media career spans 35 years and
includes the development and launch of over 13
print and or digital media titles and three media
companies. Most recently, Ed was the Founder,
President & Publisher of Government Security News
(GSN) the first homeland security media company
that was started shortly after 9/11.
Jan Stejskal
Chief Technical Officer
Jan is a true American success story. After
immigrating to the U.S. (from the Czech Republic)
with just $400 in his pocket, he's become an
entrepreneur and technology wizard. A master of
new media technologies, Jan has developed the
many proprietary technologies that underpin the
entire publishing infrastructure at Of Eleven
Media.
Prior to founding Of Eleven Media Jan was an
entrepreneur who provided technology solutions
for a number of today's leading speakers and
authors, including self-made billionaire, Bill
Bartmann.
Kim Norkett
Associate Publisher
A star rugby player and coach in Wales, Kim
managed 2,500 people and was responsible for all
rugby activity in one quarter of the country.
After family obligations forced him to leave this
high profile position he turned his attention to
business and publishing. In 2012 he was a key
member of the launch team that became the first
group in publishing history to launch four magazines
simultaneously.
Kim’s management experience makes him ideally
suited to lead the editorial contributor and partner
relations parts of the business.
11. YEAR 1* YEAR 2
REVENUES $1,723,232 $9,289,770
COST OF SALES $687,348 $3,813,117
GROSS PROFIT $1,035,884 $5,476,653
EXPENSES $435,125 953,250
EBITDA
VALUATION **
$600,759
$18,324,260
$4,523,403
$65,726,040
PRO FORMA
THE PLAN FORWARD
and DISCUSSION
* Year 1 commences upon investment.
** Calculated at standard industry metric of 5x
multiple of last quarter revenue, annualized.
FUNDING $200,000
TERMS 3 YR Convertible Bond
9% Yield – Convertible at
20% Discount
MINIMUM $5,000 USD
INVESTMENT
12. “It is the people who figure out how to work
simply in the present, rather than the people
who mastered the complexities of the past, who
get to say what happens in the future.”
~ Clay Shirky
