2. 2
Deal Highlights
®
• Funding pays for member acquisition
New members pay for themselves in less than 1
year.
• 8% Convertible Debt – Converts at
Discount to Next Equity Raise
• Cash Flow Positive 1 year from raise
• Enormous Established Market
• Grew from 13,000 customers to 45,000
just over the summer
3. 3
Company Highlights
®
• Tested
Left beta phase in Feb., 2017 with 13,000
customers, 1,700 retail partners, and revenue.
• Traction
Successfully closed Reg. A+ offering. Grew from
13,000 to 39,000 customer / shareholders in four
months at low cost. Revenue. Filed SEC 1-K
(annual report).
• Team
Leadership have multiple exits.
• Market
eCommerce loyalty space. Multiple competitors
with $1B+ exits, opportunity for new, differentiated
entrant.
4. 4
Company Background
®
Three forces combined to make
iConsumer possible.
• The JOBS Act of 2012
Made equity crowdfunding and 1,000,000
customer/shareholders affordable
• Existing Technology & Relationships
Leverage the infrastructure and 1,700 retailer
relationships built for iGive
• 1% vs. 99%
Income inequality and the dissatisfaction of several
generations of consumers created opportunity
5. 5
Company Background
®
Structural differentiation in an
enormous market made launching
iConsumer worthwhile
• Established competitors with massive
exits
• Changing Social Media and Mobile
Technologies
• Ownership is the ultimate loyalty
program – differentiation translates
into decreased member acqusition
cost, increased retention, & increased
purchase behavior
6. 6
Prior Company Financing
®
Leverage existing assets, relationships,
and the rise of equity crowdfunding
• Approx. $1,000,000 in off-balance
sheet financing from a founder via
iGive.com
• Reg. A+ Offering - $185,000 from
approximately 200 investors
• Leverage the granting of equity rather
than cash to attract customers
• Next offering ready to go upon FINRA
ticker symbol issuance
7. 7
This Financing
®
Fund Membership Growth
• New members pay for themselves in
10 months. Break even at ~250,000
members.
• Convertible 8% Debt – Pre 9/28
investment converts at .075 per share
at holder’s option. Last equity offered
at $.09 per unrestricted share.
Post 9/28 investment converts at 25%
discount to then current offering
price.
• Next equity offering ready to go upon
FINRA ticker symbol issuance –
expected price $.12 per share
8. 8
EXECUTIVE TEAM
Sanford Schleicher
CTO & Co-founder
CTO – iGive.com – 2008
j2 Global Communications
Director
Co-founder and Chief
Architect,
Onebox
sold – 2000
BS, Computer Sciences
University of Illinois
Melinda Moore
CMO
CMO, Crowdfunder – 2015
Co-founder, LovingEco
sold – 2012
Co-founder, Tuesdaynights
2012 – 2016
Top 50 Digital Women in
2015
Digital LA
Author, How to Raise
Money: The Ultimate Guide
to Crowdfunding
BA, Psychology
UCLA
®
ADVISORY
BOARD
David Carlick
Venture / Co-founder
DoubleClick,
Former CEO
Public Company
Michael Brennan
Real Estate /
Private Equity,
Former CEO
Fortune 500 REIT
Robert Grosshandler
CEO & Co-founder
Founder, iGive.com – 1997
Founder, eComXpo
Sold – 2008
Founder, Intercast
Sold – 1995
Co-founder, The SOFTA Group
Founded -- 1981, sold – 1993
Principal, Industrial & R.E.
Workouts
1975 – 1980
9. 9
1
iConsumer
members shop at
1,700+
participating
retailers via the
platform
Retailer handles all
aspects of transaction
(billing, shipping)
2
Retailers pay
iConsumer a
COMMISSION
(~1-20% of
transaction)
Additional revenues from
advertising & data mining
iConsumer shares
commission with
MEMBER
(Cashback)
~ 80/20 split typical (i.e.
20% gross margin – cash
available for operations
and debt service)
3
Members earn
EQUITY
in iConsumer as
additional reward
for shopping
Members also earn equity
for joining & referring
shoppers
4
Where ownership is the ultimate eCommerce Loyalty Program
HOW IT WORKS
10. 10Ownership is the ultimate eCommerce Loyalty Program
NEW APPROACH TO
COUPONS/LOYALTY
They bought a $100 sweater
“on sale” for $5.00 off
Your grandparents visited
Your parents visited
$5.00 OFF
PAPER
COUPON
FOR
to buy the $100 sweater for $95 with a
5% REBATE
BUT the discount comes in stock in iConsumer plus cash and you
become a partner/investor in an unprecedented form of
customer loyalty – company ownership
You visit .com via
too.
They also bought the $100 sweater for $95 with a
$95
11. 11
Company was bootstrapped by
ECOMMERCE-EXPERIENCED
ENTREPRENEUR
Post Beta Marketing starts in 1Q
2017 leveraging SEO/SEM/SM
strategies resulting in
~300 customers per day
~ $4.00 each.
1,000 2,000
4,000 5,000
6,000
8,000 10,000
24,000
40,000
64,000
100,000
0
20,000
40,000
60,000
80,000
100,000
120,000
6/15 9/15 12/15 3/16 6/16 9/16 12/16 3/17 6/17 9/17 12/17
BUILD ON SUCCESSFUL AND
EFFICIENT GO TO MARKET STRATEGY
Ownership is the ultimate eCommerce Loyalty Program
*Members by quarter
MARKETING
STARTS
12. 12
LARGE AND GROWING GLOBAL
ECOMMERCE MARKETPLACE
INCLUDES
products or services ordered
using the internet via any
device, regardless of the method
of payment or fulfillment;
excludes travel and event tickets.
$20.795
$22.049
$23.445
$24.855
$26.287
$27.726
$1.448
$1.915 $2.352
$2.860
$3.418
$4.058
$0.000
$5.000
$10.000
$15.000
$20.000
$25.000
$30.000
2015 2016 2017 2018 2019 2020
Total Retail Sales Worldwide, 2015-2020 Retail Ecommerce Sales Worldwide, 2015-2020
Ownership is the ultimate eCommerce Loyalty Program
*dollars in trillions
Source: eMarketer, Aug 2016 www.eMaarketer.com
13. 13
$12,700,000,000
$1,500,000,000
$1,050,000,000
$960,000,000
$20,000,000
$13,000,000
$0 $2,000,000,000 $4,000,000,000 $6,000,000,000 $8,000,000,000 $10,000,000,000 $12,000,000,000 $14,000,000,000
* MyPoints is now part of SwagBucksOwnership is the ultimate eCommerce Loyalty Program
IPO OR SALE VALUATIONS
UNICORNS! IN COUPON/LOYALTY
*
Valuation metrics ranged for this
group of companies. eBates sold
for $384 per customer.
RetailMeNot had P/E ratios that
ranged from 48 to 270.
15. 15Ownership is the ultimate eCommerce Loyalty Program
NEXT STAGE INVESTMENT
Market Cap
~$20,000,000
Share Price (last sale):
$.09 (May, 2017)
210,000,000
Shares Issued & Outstanding
$2M note
$.075/share conversion price if
commit by 9/25, after that 25%
discount to then current offering
price at conversion time
Anticipated next offering price:
$.12 /share
Will have ticker symbol and
OTC QB listing
17. 17Ownership is the ultimate eCommerce Loyalty Program
TIMELINE
10/17–12/17
4Q 2017 is pivotal
Opportunity to capture
More members with holidays
9/17
$2M investment
In combination with member
focus on use and additional
awards/value creation resulting
in increased value of shares
9/16
Qualified Reg A+
IPO
2/17
Post Beta Marketing
GotoMarket Strategy
Growth skyrockets
At rate of 9K monthly
9/17
Strategy focus
On growth to Cash Flow
Positive at~ 250,000 Members
FINRA ticker in process
18. 18
USERS/MEMBERS
EST. DATE ACHIEVED
Annualized Revenue
Annual Gross Margin
Fixed Operating Costs
Annualized Cash Flow
(W/O Cost Of Acquisition)
Variable Op. Cost
Marketing
Cash Req. To Achieve
40,000 1,000,000
2021
$50,000,000
$10,000,000
$ 2,000,000
$ 5,000,000
$ 1,500,000
$ 2,000,000
6/2017
$1,500,000
$ 300,000
$ 300,000
$ (150,000)
$ 50,000
$ 100,000
Shares Outstanding 210,000,000
250,000
9/2018
$12,500,000
$ 2,500,000
$ 1,000,000
$ 700,000
$ 500,000
$ 300,000
$ 1,000,000
500,000
2019
$25,000,000
$ 5,000,000
$ 1,500,000
$ 2,000,000
$ 1,000,000
$ 1,000,000
Market Cap @ $200
A Member
Price Per Share
$ 50,000,000 $ 100,000,000 $ 200,000,000
$.09
265,000,000
$.19
302,000,000
$.34
378,000,000
$.53
Ownership is the ultimate eCommerce Loyalty Program
THE DRIVE TO MARKET VALUE
Estimated - Forward Looking Statement
$1,500,000$ 500,000
Use of proceeds
19. 19
• Membership Growth
Explicit 1,000,000 Member Goal
• Increase Gross Margin per Member
Additional Revenue Sources – Size Matters
Adjust Cashback vs. Stock Ratio (leverage
the multiple)
Ownership is the ultimate eCommerce Loyalty Program
BUILDING VALUE –
TWO PRONGED STRATEGY
Fundamental Economics Stock Market Focused
OTC QB and penny stock status have
challenges but during early stage economics
are persuasive.
250,000 shareholders have market makers
interested.
Uplisting to an exchange expensive, may be
worth it at right time
• Institutional Interest
• Increased Float
• Credibility
20. 20Ownership is the ultimate eCommerce Loyalty Program
CONVERTIBLE DEBT OFFERING
$1 - $2MM - 8% interest - 3 year term
Amount:
8% Interest accrued year 1, interest only years 2 and 3, paid
quarterly
Convertible at holder’s option, after FINRA approval
Conversion: .075/Share if commit by 9/25. 25% to most recent
offering price thereafter
21. 21
COMPLETED SUCCESSFUL Reg. A+ offering, May, 2017
Share Price: $.09 PER SHARE (~$20,000,000 market cap)
After FINRA review & ticker symbol issuance, iConsumer will be
quoted on the OTC QB MARKET FALL, 2017
~41,000 Shareholders
Lawyers don’t like CALLING US PUBLIC, because we used Reg. A+
Ownership is the ultimate eCommerce Loyalty Program
BUILT IN EXIT - PUBLIC COMPANY
22. 22
• THE CONVERTIBLE DEBT OFFERING DESCRIBED IN THIS PRESENTATION IS OPEN TO “ACCREDITED INVESTORS” ONLY, THROUGH AN OFFERING MADE IN
ACCORDANCE WITH REGULATION D, RULE 506(C) OF THE SECURITIES ACT OF 1933, AS AMENDED. IN PURCHASING SECURITIES THROUGH A 506(C) OFFERING, WE
ARE OBLIGATED TO VERIFY ANY PARTICIPATING INVESTOR’S STATUS AS AN “ACCREDITED INVESTOR” IN ACCORDANCE WITH RULE 501 OF REGULATION D.
• NO MONEY OR OTHER CONSIDERATION IS BEING SOLICITED FOR THE PURCHASE OF OUR SERIES A NON VOTING PREFERRED SHARES, AND IF SENT IN RESPONSE,
WILL NOT BE ACCEPTED.
IN REGARDS TO OUR SERIES A NON VOTING PREFERRED SHARES, NO OFFER TO BUY THE SECURITIES CAN BE ACCEPTED AND NO PART OF THE PURCHASE PRICE
CAN BE RECEIVED UNTIL AN OFFERING STATEMENT FILED BY THE COMPANY WITH THE SEC HAS BEEN QUALIFIED BY THE SEC. ANY SUCH OFFER MAY BE
WITHDRAWN OR REVOKED, WITHOUT OBLIGATION OR COMMITMENT OF ANY KIND, AT ANY TIME BEFORE NOTICE OF ACCEPTANCE GIVEN AFTER THE DATE OF
QUALIFICATION.
• INVESTORS SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE CONVERTIBLE DEBT OFFERING CAREFULLY BEFORE
INVESTING. THE OFFERING'S DOCUMENTS MAY BE OBTAINED BY CONTACTING US. PLEASE READ THE OFFERING DOCUMENTS CAREFULLY BEFORE YOU INVEST. THE
ARTICLES AND OTHER INFORMATION DESCRIBING OUR BUSINESS MAY CHANGE AND WE ARE UNDER NO OBLIGATION TO UPDATE OR ADVISE AS TO THESE
CHANGES. THE INFORMATION ON THIS WEBSITE IS PROVIDED FOR CONVENIENCE ONLY, IS NOT INVESTMENT ADVICE AND MAY NOT BE RELIED UPON IN
CONSIDERING AN INVESTMENT IN THE OFFERING. PROSPECTIVE INVESTORS MAY RELY ONLY UPON THE OFFERING’S CONFIDENTIAL PRIVATE PLACEMENT
MEMORANDUM, NOTE, AND SUBSCRIBER AGREEMENT.
• WE DO NOT MAKE ANY REPRESENTATIONS AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED ON THIS WEBSITE AND UNDERTAKE NO
OBLIGATION TO UPDATE THE INFORMATION. ALL INVESTMENTS CONTAIN RISK AND MAY LOSE VALUE. THIS DOES NOT CONSTITUTE AN OFFER TO SELL OR A
SOLICITATION OF INTEREST TO PURCHASE ANY SECURITIES OR INVESTMENT ADVISORY SERVICES IN ANY COUNTRY OR JURISDICTION IN WHICH SUCH OFFER OR
SOLICITATION IS NOT PERMITTED BY LAW.
•
AN INDICATION OF INTEREST INVOLVES NO OBLIGATION OR COMMITMENT OF ANY KIND.
OUR ANNUAL REPORT ON FORM 1-K DISCUSSES SOME OF THE IMPORTANT RISK FACTORS THAT MAY AFFECT OUR BUSINESS, RESULTS OF OPERATIONS,
AND FINANCIAL CONDITION.
Ownership is the ultimate eCommerce Loyalty Program
SAFE HARBOR STATEMENTS
23. 23
CONTACT
“We’re here to make a dent
in the Universe.”
Steve Jobs
Ownership is the ultimate eCommerce Loyalty Program
Melinda Moore
310.339.1681
melinda@iConsumer.com
Robert Grosshandler
847.477.6968
rob@iConsumer.com
