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Personalized Advertising Representatives'
eXport Trading Company
(P.A.R.X.T.C.)
©Copyright 1984 - 1999 - Andrew Williams and Karl McIntosh - All Rights
Reserved - No Unauthorized Duplication Permitted
Disclaimer
The enclosed confidential information is not intended to represent claims
or representations of guaranteed or warranteed activities or earnings, or
knowledge, endorsement or participation by any of the companies,
products and/or services identified or described herein.
This enclosed confidential information is submitted solely for the purpose
of obtaining input, assistance and support in the effort to accomplish the
goals and objectives described herein, and does not imply any promised
input, assistance or support.
All of the enclosed confidential information is submitted solely for review
purposes, and must be returned, within 48 hours of sign-out date and time
listed below, to the individual who authorized the review [either Andrew
Williams or Karl McIntosh].
SIGN OUT AUTHORIZED BY [Andrew Williams or Karl McIntosh]: ____________________
DATE AND TIME OF AUTHORIZED SIGN-OUT: ________________________
AUTHORIZED SIGN-OUT TO: ________________________ _______________________
PLEASE PRINT SIGNATURE
DATE AND TIME OF REQUIRED SIGN-IN [48 hours maximum]: ______________________
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
Personalized Advertising Representatives'
eXport Trading Company
(P.A.R.X.T.C.)
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
TABLE OF CONTENTS
EXECUTIVE SUMMARY Section I
EQUITY FUNDING 1
TARGETED FUNDING SOURCES 2
MULTI-LEVEL, MULTILINGUAL MARKETING - WHY NOW? 2
ACCOUNT RETENTION PHILOSOPHY 2
MISSION STATEMENT 3
WHERE DO WE SEE THE COMPANY GOING? 3
WHAT ARE THE COMPANY'S MAIN MARKETS? 3
WHAT TYPE OF FINANCIAL CONTROLS WILL PREVENT
DISORGANIZATION OR EMBEZZLING, HANDLE
ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE, AS
WELL AS ENSURE ADEQUATE INVENTORY, ETC.?
GOALS AND OBJECTIVES 4
THE BARTER PROGRAM 5
COMMUNITY RESOURCE BANK CENTER 6
ACTIVITIES CALENDAR TOPICS 8
THE MARKETING PROGRAM Section II
GLOBAL MARKETING STRATEGIES 9
GLOBAL MARKETING TACTICS 10
GLOBAL MARKETING SUPPORT 11
MEMBERSHIP PRODUCTS AND SERVICES Section III
MEMBERSHIP PRODUCTS AND SERVICES 12
SERVICES PRICE LIST #1 13
SERVICES PRICE LIST #1 (Description) 14
SERVICES PRICE LIST #2 15
SERVICES PRICE LIST #2 (Description) 16
USE OF FUNDS Section IV
USE OF FUNDS (Administration - 16.7%) 17
MANAGEMENT CONSULTANTS 19
Accounting Firms 19
Financial Agencies and Institutions 19
Legal Firms 19
Vendors and Suppliers 19
USE OF FUNDS (Operations - 28.1%) 20
USE OF FUNDS (Marketing - 55.3%) 21
IN HOUSE PROMOTIONS 21
AGENCY PROMOTIONS 21
SEMINARS 21
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
TABLE OF CONTENTS
(continued)
DETAILED USE OF FUNDS Section V
ADMINISTRATIVE EXPENSE 22
Management Personnel 22
Professional and Consulting Services 22
Management training programs, aids and supplies 22
OPERATIONAL EXPENSE 22
Office and production facility leasing & rental 22
Telecommunications (audio, data, text, video transmissions) 22
Travel, Accommodations & Transportation 22
PROMOTIONAL EXPENSE 23
Publishing Design Equipment 23
Preproduction Equipment 23
Publication Equipment 23
Output & End user Products 23
Production Personnel 23
Advertising, Publicity, Infomercials and Promotions 23
DETAILED USE OF FUNDS SUMMARY 24
Administration 24
Operations 24
Promotions 24
Licensing, insurance, maintenance, permits, etc. 24
Contingency fund 24
PROJECTED MILESTONES 24
INVESTOR REPAYMENT PROGRAMS 25
National Distributorships 25
Regional Distributorships 25
Area Distributorships 25
National Corporate Accounts 25
Corporate Accounts 25
Executive Accounts 25
Business Distributorships 25
Independent Dealerships 25
APPENDIX Section VI
Definitions 26
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
EXECUTIVE SUMMARY
EQUITY FUNDING
Personalized Advertising Representatives' eXport Trading Company
(PARXTC) seeks equity funding in the aggregate of $29 Million U.S. to
organize, staff and administer an export trading company (formed under
the Export Trading Act of 1982) capable of accomplishing the following
milestones within a 3-year period from inception:
¬ develop and expand a multicultural consumer shopping discount
membership service, providing 24 hour multilingual subscription
access (catalog, video catalog, voice mail and on-line) to a variety of
clients' goods and services, sourced locally, nationally and
internationally. PARXTC would use automated order processing and
fulfillment services, with monthly detailed statements for all
businesses, customers and marketing representatives;
¬ develop and expand a multilingual, multimedia publishing network
(print catalog, video catalog, and voice mail and on-line Activities
Calendar, Information Center and Shopping Network) in each
targeted U.S. Metropolitan Statistical Area (MSA), through which to
promote and distribute our (and our clients') proprietary goods and
services;
¬ provide income opportunities, on-the-job training and/or career
development to 3,456 independent distributors and dealers, and 6-
member in-house multimedia publication staff in each of 12 targeted
U.S.A. MSA's (41,474 total).
¬ provide low cost/high quality sales, marketing, administrative and/or
import/export management services to 41,474 home-office, small (1-
499 employees) and medium (400-999 employees) sized businesses
in each of 12 U.S. MSA's (497,688) to increase sales of their
commodities, equipment, goods and services to markets:
¬ locally, to consumers in other languages/cultures
¬ nationally, through branch sites and their independent sales
representatives;
¬ internationally through branch sites and their independent sales
representatives
In all cases, PARXTC strives to match clients' needs, resources and
timetables with available global, foreign, federal, regional, state, county,
municipal, corporate, nonprofit, public and private support services.
The decision to operate PARXTC as a miniconglomerate maximizes each
unit's particular competitive advantages, enabling each to respond
proactively to changing market and industry conditions.
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
TARGETED FUNDING SOURCES
First tier anchor investment targets are foreign trade consulates, harbors, airports, universities,
governmental trade agencies (federal, state, county and municipal) and
telecommunications/media corporations.
Second tier financing will be generated by fees paid for national, regional, area, community and
independent distributorships, along with consumer dealerships (authorization to place orders for
discounted products and services for themselves and others) in targeted metropolitan statistical
areas in the United States.
Consequently, first tier financing can be in the form of Irrevocable Letters of Credit (ILOC's)
providing minimum investor exposure, maximum return on investment, and an accelerated buy-
out option in consideration for a 36% (aggregate) equity share.
MULTI-LEVEL, MULTILINGUAL MARKETING - WHY NOW?
Utilizing a multi-level, multilingual marketing program:
¬ maximizes our capital to sales ratio;
¬ generates cash flow through distributorship registration fees; and
¬ guarantees a core customer base for all four PARXTC divisions.
Perhaps more importantly, that tactic allows us to penetrate previously untapped markets to
recruit distributors, dealers and, ultimately, consumers, i.e.,
¬ non-English-speaking and bilingual multi-level consumer communities in the United
States and abroad; via
¬ non-English-speaking and bilingual multi-level marketing agents
A multi-level, multilingual communications network:
¬ empowers consumers to select goods and services at the most competitive price, with a
wider selection from local, national and international sources;
¬ penetrates new markets for businesses, through different cultural and lingual groups in
local, national and international communities; and
¬ employs bilingual and multilingual students and adults in new occupations, expands their
career opportunities and offers hands-on entrepreneurial training.
Bringing PARXTC to full operating status to maximize competitive advantages not only enables
the firm to capture market share from more established players. It also positions PARXTC to
broker complementary, high-quality products and services, thereby positioning the firm as the
distribution and delivery system of choice for those larger companies (at a profit to us), while
reinforcing customer loyalty to PARXTC.
ACCOUNT RETENTION PHILOSOPHY
¬ Sell to the most sophisticated and demanding buyers and channels.
¬ Seek out buyers with the most difficult needs.
¬ Establish norms of performance and production exceeding the toughest regulatory and
specificatory standards.
¬ Source from the most advanced local and international home-based suppliers.
¬ Treat employees and representatives (licensees, distributors, dealers) as permanent.
¬ Establish outstanding competitors as motivators.
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
MISSION STATEMENT
Recognizing that small- (1-499 employees) and medium- (500 - 999 employees) sized business
owners traditionally lack resources and expertise to market their services to all potentially
profitable markets in the United States and abroad, we formed PARXTC to develop the
packaging, promotion and support services they need, but can only afford through a self-
sustaining, cooperative effort on their behalf:
¬ by applying multimedia advertising design skills to grow a multi-faceted professional
image on behalf of distinct business segments, the cost of personalizing each package
to specific types of businesses assures individual affordability for each business
member-client.
¬ by developing and coordinating a 24-hour, automated, multilingual, multinational, live,
voice mail, e-mail, bulletin board and Internet communications/shopping/ information
network to offer consumers worldwide access to discounted (volume-based) high quality
goods and services, we build long-term customer loyalty to our, and our member-clients'
product/service lines.
¬ the provision of a private barter pool through which businesses and
¬ consumers can increase their spending, regardless of general economic conditions,
spurs local community development and increases the local, state and federal tax base.
WHERE DO WE SEE THE COMPANY GOING?
Achieving sales hubs in targeted United States Metropolitan Statistical Areas (MSA's) is the first
step to package and represents our, and our clients' products and services to targeted foreign
markets... in effect, growing a domestic sales management agency into an export management
consultancy.
By securing funding targets, PARXTC would acquire franchises through which to:
¬ rapidly gain expert marketing, management, and operating systems; and
¬ achieve credible positioning to establish a recognizable brand image (our copyrighted
logo, trade marks and service marks) on behalf of our, and our clients', proprietary
products and services.
WHAT ARE THE COMPANY'S MAIN MARKETS?
¬ the largely untapped markets of micro-, small- and medium-sized businesses in
mainstream and ethnic communities in the largest U.S. MSA's;
¬ .02% of the 20 million home/portable computer users now generating or desiring to
generate home-based business income; and
¬ .01% of the $48 billion annual non-store consumer purchases made in the United States.
WHAT TYPE OF FINANCIAL CONTROLS WILL PREVENT DISORGANIZATION
OR EMBEZZLING, HANDLE ACCOUNTS RECEIVABLE AND ACCOUNTS
PAYABLE, AS WELL AS ENSURE ADEQUATE INVENTORY, ETC.?
The proprietary software installed to monitor, transact and detail sales, commission barter,
invoicing and order fulfillment for cash, credit and barter transactions is designed with built-in
security safeguards limiting control through a credit card-like instrument.
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
GOALS AND OBJECTIVES
1. to provide the General Public with up to date consumer information about any given
product or service, by operating a referral service among the multicultural
representatives from business, political, educational, religious, social, scientific,
financial and public service communities in Metropolitan Statistical Areas (MSA's)
targeted for market development.
2. to promote clear cut accounting, tax and financial planning counseling, training and
procedures to improve our clients' (advertising sponsors and consumers)
productivity and add stability to our long-term relationships.
3. to educate small business owners about the values, uses and methods of marketing
their products and services, cooperatively, on a long-term basis.
4. to build mailing, telephone and contact lists from markets targeted by our clients,
associates and representatives.
5. to help our clients, associates, representatives and customers to better identify,
define and expand their markets and market share.
6. to provide new, small and home-based business owners with ways to identify and
reach new prospects, referrals and customers.
7. to build a global network of manufacturers, distributors, promotional (advertising,
publicity, public relations, marketing and sales) agencies, nonprofit organizations
and their patrons.
8. to build a resource bank of businesses, suppliers, vendors, subcontractors and
consultants who can provide any given support service with a high degree of quality
and moderate cost to members of our referral network.
9. to design, create, promote, distribute and disseminate multimedia (including
animated), multicultural, multilingual, print, photographic, audiographic,
videographic, dramatic and comedic commercials, documentaries, and other
promotional materials... to improve the clarity and sharpen the impact of our clients'
and our own advertising projects, programs and campaigns.
10. to produce and distribute cooperative marketing publications to promote PARXTC
products, services, activities and campaigns.
11. to establish, operate and administer national, intercontinental and international
organizations of bilingual and multilingual independent sales agents, distributors
and dealers to promote and sell our products, services and events, through 36
month, renewable contracts.
12. to provide members of those sales organizations with new income opportunities, a
wide selection of products, services and activities to promote and sell; sales
incentives and dealership opportunities.
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
THE BARTER PROGRAM
The best medicine to help the United States' chronically criminal, homeless,
illiterate, physically challenged, veteran, underemployed and unemployed youth,
adult and senior population initiate and sustain a livelihood at or exceeding
America's median per capita household income, without welfare, crime or other
subsidized governmental assistance is to engender an earning/spending boom.
PARXTC
¬ラマ0empowers enterprising U.S. consumers to generate additional earnings on
a part-time basis, throughout the day and night, despite present age, credit
worthiness, gender, language, culture, nationality, living conditions,
geographic location, health or criminal status.
¬ラマ1increases the sales of small and medium sized businesses to new markets
on a local, national and international basis.
¬ラマ2educates and assists businesses and consumers in the application of the
latest (and emerging) technologies, communications systems and information
networks - accessible by mail, phone, computer, fax, e-mail, and any other
means of communication from anywhere on, or within reach of the Earth, 24
hours a day.
¬ラマ3introduces and administers a closed-end multilevel marketing program that
enables the consumer member to:
¬ラヒ0enjoy discounted purchasing opportunities for a wide variety of products
and services produced and promoted by varying ethnic artisans and
businesses.
¬ラヒ1earn additional income by placing order for people they know and meet,
in person, by phone, computer, etc.
¬ラヒ2achieve personal economic freedom and independence by bartering
their skills, talents and abilities with other consumer and business
members.
Thanks to the tandem of decreasing information technology costs and rising
hardware/software performance standards, elements of the coming information
superhighway and wireless communications applications can be utilized NOW to:
¬ラマ0track and administer the barter system herein described;
¬ラマ1offer real time interactive accounting for all transactions and participants;
¬ラマ2produce month-end financial statements for all participants, with quarterly,
semiannual and annual summaries;
¬ラマ3conduct 24-hour, multilingual on-line and voice mail customer services and
technical support to accomplish all of the above at a minimum cost for both
business and consumer uses.
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
COMMUNITY RESOURCE BANK CENTER
Members and Associates of the
Personalized Advertising Representatives'
(P.A.R.) Referral Network hold the belief that
each human being has at least one talent,
skill, ability, experience or expertise that he or
she can consciously apply to increase self-
esteem, earn additional income, acquire
vocational or educational assistance, or to
accomplish any other goal or objective.
Our prime objective is to match those
human resources with existing needs in each
community, in order to upgrade community
development, while providing a tangible
sample of how well each individual can apply
his or her resources.
Community development is a never-ending
process. There will never be too many people
involved; and each person's participation and
progress can be accounted for and credited to
his or her permanent Activities Journal, kept
at the Center.
Additional benefits to community service
efforts include:
1. Establishing a Community Journal
that includes historically important information
about the people and activities in each area.
A. The consistent documentation
of each person's life, as the only true history
we'll ever have of what happens throughout
the rest of the century and the rest of our
lives.
B. While few individuals are
equipped or prepared to undertake the
documenting, cross-referencing and retrieving
of daily events in their lives, one centralized
hub, so equipped, can provide that service to
an almost unlimited number of people.
2. As community development efforts
begin at one location, neighbors notice and
respond with their own projects, to
conscientious efforts on the part of the Center
participants, a block by block, area by area
involvement would increase the property
value of all neighborhood owners.
3. As community involvement spreads,
underutilized space, facilities, equipment,
vehicles, supplies, materials and manpower
become noticed and applied; the needs of the
growing number of people involve spread to
include those seeking constructive use of
available, unused resources.
4. Untapped human resources - youth,
single parents, senior citizens, illiterate adults,
the underemployed, unemployed, homeless,
as well as rehabilitating convicts and addicts,
would have the freedom and access to the
means of improving their self-respect and
self-esteem, by applying their time and
energy to projects that gain them recognition
and appreciation; or results in unseen
contributions that nevertheless assist the
redevelopment effort, through their self-
development achievements.
5. Eager youth can gain valuable
guidance and assistance from those
experienced craftspersons, tradespersons
and business owners willing and able to apply
their knowledge and facts in demonstrating,
coaching and directing willing learners.
A.Youth need alternatives to gangs
and crime, true enough, but not all kids fit in the
educational system. They need hands-on
experience, directly related to their area(s) of
interest and expertise.
B. Still other kids seek any
alternative to the dead-end jobs and lives they
see around them. Developing entrepreneurial
skills is the only challenge that may fully
engage their interest, so the Center, working
with the business owners in the community
could provide them with guidance and
encouragement.
6. Just as there is an abundance of
illiterate youth and adults in the communities
across the country, some too ashamed to
seek help; there are millions of senior citizens
- even youth - whose reading ability,
communication skills, time and energy could
change the lives of people around them;
snowballing the self-esteem and self-
development efforts of all participants and the
Center itself.
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
COMMUNITY RESOURCE BANK CENTER
(continued)
7. We all decry the need for better
educating our youth, but overlook their
willingness to apply themselves to what most
interests and excites their imagination; the t.v.
programs, radio broadcasts; videos;
magazines and discussions that entertain
their waking hours. Yet, no one can effect
change without affecting the cause of the
problems.
A. By expanding the concept of
journalizing local events to include all known
forms of recording: print, photographic,
sketch-graphic, audiographic, videographic,
and digital a Community Center could
produce culturally, instructionally and
educationally entertaining publications,
showcasing performers that the youth would
idolize and model themselves after... their
family, friends, relatives and associates - the
stars of the show.
8. People in each community face
minor problems that can quickly become life
and death crises when they don't know where
to turn for help.
A. By simply staffing or
coordinating (through call forwarding) a 24-
hour live personnel referral service to handle
any need, the Center justifies its existence the
first time someone calls, when every other
source of assistance is closed.
9. This is a multilingual, multicultural
society and community. Part of the Center's
responsibility would include establishing a
network of bilingual associates who speak
and writ in English, plus a language common
to one or more peoples in each community.
10. Few individuals or businesses in the
community can afford to make available a
fully equipped desktop publishing system,
interfaced with a voice messaging exchange
system and videorecording/ editing facilities to
the general public.
A.The Center could do so, allowing
local "disadvantaged" residents the
opportunity to gain hands-on experience on
major projects with which they would never
otherwise be able to participate.
11. Along with the abundance of
negative influences in the community, there is
also an overabundance of artistic and creative
talents among youth and adults. With a
minimum of amount of space and equipment,
the Center could house on-site a complete
seriograph (silk-screening) operation to
produce individual and group fine art and
commercial products marketable throughout
the local community, and throughout the
world.
A. In a space the size of a two-car
garage, offset printing/lithographic facilities
can be set up to produce prints, posters and
publications in various languages that would
promote Center products and services, while
providing a consistent training program for
youth interested in applying those skills in a
hobby or career.
12. Because illiteracy is a growing
problem throughout all cultural groups, the
need will increase for more visual forms of
communication and education.
A. Becoming more available to
homes and businesses throughout the
country and world are videocassette
recorders and players. With little more than a
two-tier shelf space about six (6) feet wide,
the Center could install a video
editing/duplicating station with which to
assemble video material collected from one or
more individuals, journalizing events in their
lives, and in the life of the community.
B. Inventions and products
introduced by "minority" Americans are too
numerous to include here, but have received
little attention during "Black" History Month, or
any other time, except in a passing way.
Latino, Native American and Asian innovators
get even less general recognition.
C. Although the Center would be
assembling publications on-site, it could, in
effect, coordinate assembly operations
throughout the community, from each cultural
group, fostering improved cultural
communications, understanding and
relationships.
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
ACTIVITIES CALENDAR TOPICS
Arts In Focus
Body Active
Learning Minds
New, Small, Home-based and International News
On the Air, In the Air
Opinions, Comments, and Questions
Personalized Pen Pals
Politics, Technology, the Humanities and the Environment
Spiritual Essentials
Student Spotlight
Women's World
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
THE MARKETING PROGRAM
GLOBAL MARKETING STRATEGY
1. Research, identify, classify, record and track import needs and resources of
underdeveloped, developing, industrialized and post-industrialized countries, individually
and collectively [through signatories of multinational trade agreements].
2. Explore and exploit "free trade" and "trade zone" and agreements between the United
States, Canada and Mexico, the Pacific Rim and other countries having a "most favorable"
trading status with the United States, in descending order of trade volume with the U.S. and
each state targeted for market penetration.
3. Identify, package and market those products and services targeted to people, businesses,
nonprofit organizations, governmental agencies and private foundations seeking to
establish advertising, public relations, sales and/or distribution support services within the
United States and other countries targeted for PARXTC market development programs.
4. Link the most convenient order fulfillment methods and procedures with the sales of
products and services paying a commission substantial enough to adequately compensate
PARXTC, its distributors and dealers.
5. Get the help and support of selected service providers, that of their respective city, county,
state and federal governments benefitting from increased sales generated through
PARXTC sales programs.
6. Network with the United States Small Business Administration, International Trade
Association, federal, regional, state, county, municipal and private efforts to identify, involve,
package and promote locally based women, minority, disadvantaged, home-based and
mainstream business enterprises (throughout the local community and abroad).
7. Identify and mobilize multicultural media (print, broadcast and digital) representatives in
each targeted nation to provide national coverage for those foreign and domestic
advertising sponsors targeting ethnic communities, and to journalize international trade
development plans, programs and opportunities as they relate to the local audiences they
serve.
8. Identify, coordinate and expand activities of frequent business travelers to, from and
through areas targeted for market development programs in California, other U.S. locations
and targeted areas throughout the world.
9. Assemble, publish and distribute business start-up packages for each area targeted for
market development programs, linking them with cooperative advertising and promotional
campaigns in local, national and international media.
10. Establish and coordinate trade relations with and among bilingual and multilingual students,
resident aliens and foreign visitors as go-betweens to network with their respective
countries on our clients' behalf on a part-time or full-time basis.
11. Recruit and coordinate representatives from each cultural/ethnic group in targeted
communities to link historical, geographic, economic and social developments occurring
simultaneously in the local community, and on the global scene.
12. Identify, record, edit ( with multilingual titling, package, publish, syndicate and distribute
human interest and self-development materials involving targeting individuals, associates,
representatives, etc., through public access, network, independent, cable, satellite and
international media.
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
GLOBAL MARKETING TACTICS
1. Select products and services marketable to a local, national and global clientele, and
arrange a dealership, distributorship, licensee or other arrangement with each service
provider, securing a commission or purchase discount for all sales placed through our
network.
2. Acquire access to local, national and international "800" (charged to client), "900" (charged
to caller) and bulk-rate long-distance telephone line(s).
3. Develop and produce multimedia (print, graphic, photographic, audiographic, videographic
and digital) promotional material for all lines, individually and collectively.
4. Translate promotional material into selected lingual categories (using bilingual students, validated by
professional linguists), with cover letters specifically targeted to each market target.
5. Secure voice mail accounts, one per language, offering callers the option of placing orders
only, to get additional information, or to be sent promotional materials. Leads will be
referred to appropriate field representatives.
6. For each language, have Attendant record one greeting for the main box:
"This is the PARXTC Global Marketing Network. If you know the product or service I.D. number you are inquiring
about, please enter your name, address, including zip code, contact phone number, customer account number, if any,
and your purchasing requirements. To receive catalogs, videocassettes, a fax-sheet, e-mail or other promotional
material, please leave the identification information already requested, indicate your choice, and whether and when
you would like to have one of our representatives in your area to contact you."
7. Establish global access to a network of fax machines, voice mail exchange systems, Web-
pages, electronic publishing, appointment-setting, meeting, teleconferencing and
videoconferencing facilities in all targeted MSA's.
8. Develop and apply telemarketing scripts, using Toll Free Directories, National Directors of
Addresses, Telephone, Fax, E-mail and Web-page "white" and "yellow" page sources:
a. to identify purchasing agents and sources;
b. to register our name and contact number on behalf of our clients and ourselves; to bid for available contracts, work,
etc.
c. to arrange a follow-up call, demonstration, mailing, interview, etc.; and, when possible
d. to register the prospective client as a referral source.
9. Produce and distribute promotional material to prospects [targeted by Standard
Industrialized Code (S.I.C.), from our on-going research program, referrals, leads, sales
agents or other means], in a newsletter, directory, Web-page, magazine quality catalog, or
two page spread for each, or in a videomagazine format, introducing our products, services
and/or clients, individually and collectively.
10. Document responses and route inquiries, prospects, orders and related information to
respective service providers' voice mail boxes, e-mail addresses, etc., logging in the date,
time, account number and other verification data.
11. Secure referral agreement with new prospects and clients when none are currently
registered with us to do the work or deliver the product as desired by the prospective
customer.
12. Collect and distribute commission/referral revenue to sales agents, their upline(s) and/or
downline(s), if any, translators, home-based telemarketing appointment setters, and other
support personnel.
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
GLOBAL MARKETING SUPPORT
Please review the enclosed material describing our agency's products and
services, and picture them all focused on helping you to better accomplish your
and your clients' immediate, developing and long-term goals and objectives.
Since 1984, we have been developing ways and means to promote the products
and services of new and small business owners on a local, national and
international basis, but most have been unable to use the full range of assistance
we can provide.
For a limited time, we are offering year-round national and international
marketing support and information management services for clients with an
existing U.S. sales force and/or customer base, to coordinate efforts in a dozen
states, and Washington, D.C., for as little as $25,000.00 per year, less than
staffing branch office in the U.S.
That would include any combination of answering services, as-needed office
space and communications facilities (fax, teleconferencing, videotaping, etc.),
and a national headquarters located in or near a World Trade Center complex, to
coordinate appointment settings, purchases, and more.
We can do an intensive start-up project, including a dozen branch offices, a
publicity and media (print, broadcast and Internet) campaign and 24 hour "800"
support services for $1,000,000.00 per year.
Our service does not stop there. We can establish and manage an international
sales agency, with offices in the United States and Europe (London); provide
staffing, international multilingual "800" support, daily t.v. and radio commercials,
with state-of-the-art computer and telecommunications order fulfillment services
around the world for as little as $5,000,000.00 per year.
In either case, our fee is reasonable, at 12.5% of the budget we'd be handling for
you, or a minimum of $2,500.00 per city, per language, per month, or $25,000.00
per month, to cover a dozen U.S. cities, in a dozen languages, plus expenses.
Those, of course, are general pricing guidelines, and we're willing to work with
you to provide individualized packaging to fit your and your clients' needs, budget
and timetable. Ask about our specialized marketing support services available in
the United States and abroad.
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
MEMBERSHIP
PRODUCTS AND SERVICES
MEMBERSHIP PRODUCTS AND SERVICES
Private voice mail box
Available 24 hours daily to record all messages
Greeting in your own voice - change as often as you choose
Remote access by cellular or direct dial - local or long distance
Pager alert available
Your private voice mail network
Up to 100 or more voice mailbox network
Send messages to all - with one phone call
Use to coordinate any group - church, school, sales, etc.
Set up a message center to coordinate plans and schedules
Alert all members with last-minute changes
Multilingual, multi-cultural voice mail Activities Calendar
12 Activities Calendars from which to choose - varied topics
Meet friends, business associates, customers
Updated daily with new activities - add yours!
12 languages and cultures to explore
Available in over a dozen U.S. cities, plus a dozen foreign cities
Multilingual E-Mail Account
Communicate by computer
Share information and ideas
Fit messaging into your schedule - 24 hours a day
Low cost messaging around town, or around the world
Low cost Internet access
On-line Shopping Network
Handle shopping by computer
Automated order processing, billing & delivery
Hundreds of products and services to select
Satisfaction 100% guaranteed
Access to import/export products and services
Automated currency exchange and accounting (import)
BUY - SELL or TRADE products and services
National Shopping Catalog and Video Catalog
Delivered to your door, monthly
Average 20% purchase discount (minimum 10% discount)
Income opportunities - sell to others and keep the profit
Promote your own products and services
Buy catalogs in bulk (2 for $.75) and sell to others ($1.00 each retail)
Dealership opportunities - make money part-time or full-time from home
Access to Barter and Exchange Network to buy and sell products and services
Earn credits through purchases, order-taking and work projects
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
SERVICES PRICE LIST #1
ID# Registration Monthly 12-month Year #1 Total Cash Savings or
Fee Expense Expense Expense 36-month Discount Investment
(Year 2,3) ( Expense Cost (52%) Return
(1) (2)
1A. $ 19.95 $ 0.00 $ 19.95 $ 19.95 $ 59.85 N/A N/A
1B. $ 25.00 $ 12.50$ 150.00 $ 175.00 $ 475.00 $ 247.00 $ 228.00
1C. $ 25.00 $ 12.50$ 150.00 $ 175.00 $ 475.00 $ 247.00 $ 228.00
1D. $ 25.00 $ 12.50$ 150.00 $ 175.00 $ 475.00 $ 247.00 $ 228.00
1E. $ 25.00 $ 12.50$ 150.00 $ 175.00 $ 475.00 $ 247.00 $ 228.00
1F. $ 50.00 $ 25.00$ 300.00 $ 350.00 $ 950.00 $ 494.00 $ 456.00
1G. $ 75.00 $ 37.50$ 450.00 $ 525.00 $ 1,425.00 $ 741.00 $ 684.00
1H. $ 75.00 $ 37.50$ 450.00 $ 525.00 $ 1,425.00 $ 741.00 $ 684.00
1I. $ 100.00 $ 50.00$ 600.00 $ 700.00 $ 1,900.00 $ 988.00 $ 912.00
1J. $ 250.00 $ 125.00 $ 1,500.00 $ 1,750.00 $ 4,750.00 $ 2,470.00 $ 2,280.00
1K. $ 500.00 $ 250.00 $ 3,000.00 $ 3,500.00 $ 10,500.00 $ 5,460.00 $ 5,040.00
1L. $ 1,000.00 $ 500.00 $ 6,000.00 $ 7,000.00 $ 13,000.00 $ 6,760.00 $ 6,240.00
1M. $12,000.00 $6,000.00 $72,000.00 $84,000.00 $156,000.00 $81,120.00 $74,880.00
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
SERVICES PRICE LIST #1 (Description)
ID#
1A. Catalog subscription (180 pages each month)
1B. Private 24-hour voice mail box (maximum 100 messages per day)
1C. Private e-mail box
(shopping network / bulletin board access)
1D. Daily voice mail classified ad
(offering customer discounts, sales promotions, announcements, more)
1E. Daily e-mail classified ad
(offering customer discounts, sales promotions, announcements, more via Web-link)
1F. Catalog Distributor Listing (per city, per lingual edition)
(14,400 catalogs distributed per city, per month)
1G. 100 Catalogs (per city, per lingual edition)
(list price $2.00 each)
1H. Video catalog subscription (per city, per lingual edition)
(earn commissions by placing orders for others)
1I. Business card display ad (per catalog, per lingual edition)
Videomagazine Subscription
1J. Business Consulting Accounts (up to 5 hours per month)
Sales Promotions
Advertising Specialties
National Advertising and Publicity
Cooperative advertising at a Savings
Opening New Sales Territories
Import/Export Opportunities
Computer Systems and Software
Discount Legal, Health and Dental Programs
Catalog Distributor Listing (one city, one lingual edition)
Barter and Trade Program Registration
Videomagazine Subscription
1K. Executive Account
All Consulting Account Benefits (above)
Catalog Subscription
Private Voice Mail Box
Daily Voice Mail Classified Ad
Daily E-Mail Classified Ad
Business Card Catalog Display Ad (one city, one edition)
Web-page design, installation, maintenance, order fulfillment
1L. Corporate Account
All Executive Account Benefits (above)
30 minute videotaping session, editing to produce 3-minute video commercial)
Airing of 3-minute commercial in videomagazine (per city, per lingual edition)
1M. National Account
All Corporate Account Benefits (above)
Duplicated in 14 U.S. cities each month (or in 12 lingual editions, per city)
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
SERVICES PRICE LIST #2
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
SERVICES PRICE LIST #2 (Description)
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
USE OF FUNDS
USE OF FUNDS
Administration - 16.7%
Marketing research, product development, distribution channels and methods, financial
planning, human resource applications, trade relations and exploitation/protection of
intellectual properties are all vital elements of our business enterprise. Our in-house
management team shall work closely with a Board of Directors, Board of Advisors and
management consultants currently active in all relevant fields:
1. Chief Executive Officer - articulates and actualizes PARXTC's mission, ensuring the
development, creation, establishment, maintenance and growth of the corporate
culture throughout the management team, members of the board of directors, key
personnel and distributorship network; liaison with all management and professional
consultancies
2. Chief Operations Officer - crafts and controls the day to day activity of each office
and production facility, guided by the long-term PARXTC penetration strategy
throughout each targeted market; responsible for management and operation of
H.Q. executive office franchises for internal use and for use by distributors and
clients.
3. Chief Financial Officer - charged with charting PARXTC finances, from the initial
search for first tier and second tier venture funding, through the tracking of sales,
commissions and administration of a global sales network of independent dealers
and distributorships, including barter and exchange transactions; provides financial
planning and counseling services for all personnel; liaison with international
accounting and financial planning consultants.
4. Chief Legal Officer - review, selection and administration of PARXTC distributorship
agreements, franchises and dealerships acquired by PARXTC and ensures
compliance with local, national and international business statutes applicable to full
scale operation; preparation, filing and administration of copyright, trademark and
other intellectual property assets; liaison with international law firm, governmental
agencies and related entities.
5. Director, Marketing and Sales - development, application, coordination and
expansion of multilingual, multilevel and multicultural marketing and sales programs
to promote proprietary PARXTC products, services and activities AND those of
PARXTC clientele, throughout the Unites States and abroad.
6. Director, Multimedia Publications - responsible for the coherent, effective and
coordinated design, development, production, placement/distribution of promotional
content and collateral material for PARXTC and its clients' campaigns, tailored to
micro and macro marketing targets; oversees the hiring, training, staffing,
equipping, mobilizing and coordinating of mobile and studio recording units, editing
and production personnel; supplies management, key personnel, distributors,
clients and consumer members with all orientation, training, operational and
promotional output, in all languages and media.
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
USE OF FUNDS
Administration - 16.7% (continued)
7. Director, Import/Export Management Services - develops and exploit cooperative
marketing opportunities through Premier Membership in the World Trade Center
Association, United States Chambers of Commerce, and various trade consulates
in the United States and abroad, to coordinate the sales, order fulfillment, shipping,
delivery, billing, collection and related activities necessary to achieve PARXTC
global marketing strategies.
8. Director, Information/Technology Systems - performs all necessary activities to
install and maintain the PARXTC client server, Web-site network, proprietary Web
Pages (and links), the global PARXTC intranet, the Interactive Activities Calendar,
Discount Shopping and Income Opportunities Network; internal and publicly
accessed telecommunications and voice mail networks (of potentially 497,674+
users).
9. Director, New Product Development - identification, design, development,
production, packaging, introduction, modification and diversification of proprietary
PARXTC products and services.
10. Director, Human Resources - research, acquisition, orientation, application and
administration of management training programs, aids and supplies; development,
conducting and coordination of multilingual recruitment programs, via seminars,
workshops, advertisements, executive search and other means to find, develop and
retain top quality personnel at all levels within the company.
a. While confident that our proprietary products, services and programs can
successfully compete in domestic and foreign markets, adapting the following
proven, respected management programs, aids and techniques assure a solid
training platform for our independent licensees, distributors and dealers:
i. ENTREPRENEUR, INC. publishes manuals and, in some cases, videos
and software, to help each level of our independent sales force develop
marketing plans tailored to their specific circumstances. Furthermore,
Entrepreneur, Inc., distributes business guides for each of the component
businesses our teams will operate, ensuring integrated, hands-on
management expertise, from top to bottom. Finally, the company
distributes software and manuals encompassing a wide range of
correspondence templates, including response to inquiries, press
releases, inter-office memoranda, etc., thus assuring competent, articulate
communications essential to establish and maintain professional
credibility.
ii. Computer Business Systems, Inc. (CBS) offers a complete management
and marketing program to operate and promote voice mail, desktop
publishing and computer-related services. Employing their program at
each branch gives our personnel the basic overview of daily operational
activities; allows network-wide transfer of key management data and
encourages creative applications of our income-generating programs.
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
USE OF FUNDS
Administration - 16.7% (continued)
Management Consultants - key areas of expertise required
Accounting Firms
b. Risk management
c. Multilingual staff
d. Start-up assistance
e. Computer consulting
f. Accounting and auditing
g. Worldwide office network
h. Tax planning and compliance
i. Management advisory services
j. Business and strategic planning
k. International financial and tax services
l. Expansion of foreign based companies into the U.S.
Financial agencies and institutions
m. Letters of credit
n. Multilingual staff
o. Worldwide office network
p. Foreign exchange remittance
q. Foreign exchange collection
r. Back to back letters of credit
s. Import/export funding assistance
t. International expertise (goods and services)
u. Immigrant investment via business opportunities
Legal firms
v. Multilingual staff
w. Import/export expertise
x. Foreign language capability
y. Intellectual property expertise
z. Worldwide expertise and client base
aa. Electronically linked offices worldwide
ab. Clientele of syndicates of U.S. and foreign investors
ac. Long-standing relationships with domestic and foreign government agencies
ad. Copyright, trademark, patent and other intellectual property protection expertise
ae. Monitoring and reporting on U.S. and foreign legislative, regulatory and political
activities
Vendors and Suppliers
Those exhibiting the most comprehensive capability of servicing our operational and customer
characteristics will receive priority consideration. Final selections, however, will be greatly
affected by participating firms' commitment and ability to help us complete the final
developmental stage (including, but not limited to, preliminary advisory services, designation of
an executive liaison and discussions involving collaborative strategic alliance efforts).
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
USE OF FUNDS
Operations - 28.1%
Finding or establishing overnight presence in 12 United States sites (plus two headquarters
sites) and a dozen or more foreign markets can be cost effective only by using one or more
executive office suite networks. All offer similar business identity, receptionist, and secretarial
services, as well as access to telecommunications, teleconferencing, meeting and, in some
cases, videoconferencing facilities.
Key sites requiring full-time leases are the U.S. and foreign-based National and International
Headquarters, respectively. These four locations shall house the multimedia computing/
telecommunications nerve centers through which data, text, graphics, sound, pictures and video
images from all branches shall be routed for review and editing, prior to publication and
dissemination of newsletters, catalogs and promotional material. Separate production facilities
shall be set up to coordinate photographic, audiographic and videographic recordings, editing
and processing to produce duplicable masters, with multilingual titling.
The ultimate goal is to secure or build a global headquarters, with Las Vegas, Nevada, USA, as
the preferred site. Franchised as an executive office suite center, the PARXTC global HQ would
be licensed to generate referral commissions and support services from all other centers in the
100+ city network.
A state of the art telecommunications package is the real nerve center of our enterprises.
Beginning with local, national and international "800" and "900" accounts, the system is able to
effect multimedia digital transmission of data, text, audio and video content through interactive
networking of live, voice mail, e-mail and bulletin board menus, by up to 41,472 independent
marketing representatives and as many as 5,184,000 business/consumer users, representing a
dozen or more lingual/cultural groups. Benefits of such a system:
¬ラマ0empowers consumers to select goods and services at the most competitive price, with a
wider selection from local, national and international sources;
¬ラマ1penetrates new markets for businesses, through different cultural and lingual groups in
local, national and international communities;
¬ラマ2employs monolingual, bilingual and multilingual students and adults in translation,
interpretation, marketing, media, publishing, public relations, telecommunications, financial
management, direct marketing and import/eXport functions;
¬ラマ3builds an expanding database resource pool to better identify and service needs of both
businesses and consumers (as well as independent agents, dealers, distributors and
company personnel);
¬ラマ4encourages and supports home-office, small- and medium-sized business participation
with affordable export research, sales opportunities, trade shows and cooperative
promotions;
¬ラマ5educates a wider pool of Americans how to utilize and assist available corporate,
governmental, nonprofit, public and private efforts impacting them individually and
collectively, to achieve widespread grassroots economic development, despite
geographical, social, environmental, political or other restraints;
¬ラマ6educates a growing number of young Americans to apply existing and emerging
technological products and services to encourage and sustain local economic development
efforts through new technological applications, thereby effectively equipping them to
develop as our future leaders.
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
USE OF FUNDS
Marketing - 55.3%
IN HOUSE PROMOTIONS
The multilingual PARXTC sales network of licensees, distributors and dealers will
market, promote and sell commodities, equipment, products and services (goods and
services) from micro (0-5 employees), small (5-499 employees) to medium (500 - 999)
employees sized businesses from each of 12 targeted U.S.A. metropolitan Statistical
Area (MSA), plus two headquarters sites (for domestic and foreign operations,
respectively).
PARXTC in-house multimedia publishing unit shall produce 14,400 multilingual catalogs
per MSA (201,600 total) and 144 videocatalogs (2,016 total) each month, distributed at-
cost to participating advertising sponsors for retail sale and promotional give-aways to
their customers and prospects [each catalog devotes 25% of its space to promote
PARXTC proprietary products, programs and services]. Additional catalogs and
videocatalogs shall be distributed through aggressive sales and subscription campaigns
targeting governmental, corporate, business, consumer and retail markets.
Each division of the publishing unit (print and video) functions as an independent
subsidiary, committed first to produce in-house materials, but to also apply underutilized
capacity to perform (at a profit) services for clients and the general public.
The PARXTC Internet Home Page and resident server host offers direct access to in-
house services, and link-jump access to ALL our clients' products and services, along
with automated order fulfillment services accessible to anyone with a telephone and a
credit card.
AGENCY PROMOTIONS
Separately, a Public Express national multimedia publicity and infomercial campaign;
World Trade Center Association on-line and display advertising campaign; and
International Trade Association marketing campaign shall market PARXTC business
opportunities, proprietary products and services, import/export assistance programs and
franchised or licensed products and services
SEMINARS
Additionally, free seminars are being developed to educate our targeted markets; to
recruit distributors, dealers, members and clients; and to sell selected products and
services. Home-based video seminars and party-plan programs, with multilingual titling
are designed to penetrate the often overlooked ethnic and niche upscale markets.
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
DETAILED USE OF FUNDS STATEMENT
ADMINISTRATIVE EXPENSE
Management Personnel
Management Team
Chief Executive Officer
Chief Operations Officer
Chief Financial Officer
Chief Legal Officer
Director, Marketing and Sales
Director, Multimedia Publications
Director, Import/Export Management Services
Director, Information/Technology Systems
Director, Human Resources
Director, New Product Development
SUBTOTAL, Personnel $1,440,000.00
Advisory Board of Directors (12) $ 720,000.00
SUBTOTAL $2,160,000.00
Professional and Consulting Services
International Law Firm $ 140,000.00
International Accounting/Financial Planning Firm $ 140,000.00
International Management Consulting Firm $ 140,000.00
World Trade Center Association Premier Membership $ 90,000.00
Public Relations and Publicity Consulting Firm $ 30,000.00
SUBTOTAL $ 540,000.00
Management training programs, aids and supplies
Software (including multilingual word processing, etc.) $ 140,000.00
Computer Business Services, Inc. Franchises (14) $ 70,000.00
Entrepreneur Business Guides, Videos, Diskettes $ 40,000.00
Sales, Compensation & Order fulfillment software $ 30,000.00
Client Server Hardware, Software, Maintenance $ 28,000.00
SUBTOTAL $ 308,000.00
TOTAL ADMINISTRATIVE EXPENSE $3,008,000.00
OPERATIONAL EXPENSE
Office and production facility leasing & rental
12 U.S.A. and 12 foreign branches $1,108,000.00
National and foreign U.S. H.Q. $ 620,000.00
Production Facilities (14 U.S.A. sites) $1,400,000.00
Off-site Resource Bank Centers (3 per city) $ 420,000.00
SUBTOTAL $3,548,000.00
Telecommunications (audio, data, text, video transmissions) $1,336,000.00
Travel, Accommodations & Transportation $ 225,000.00
SUBTOTAL $1,561,000.00
TOTAL OPERATIONAL EXPENSE $4,689,000.00
TOTAL THIS PAGE $8,117,000.00
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
PROMOTIONAL EXPENSE
Publishing Design Equipment
Photo/Audio/Video/CD-Rom Recording & Editing $ 280,000.00
Silicon Graphics / AMIGA Multimedia system $ 200,000.00
Retrofitted mobile production studios (vans) $ 350,000.00
SUBTOTAL $ 830,000.00
Preproduction Equipment
Color laser printers (11" x 17")
Full bed color scanners
Relevant multilingual software
Photocopier (ADF/duplexing, collating, binding)
Color laser copier
Camera and Darkroom Equipment
PACKAGE SUBTOTAL $ 360,000.00
Publication Equipment
Web Press, (plus Pre-production & Post-production Equipment) $ 200,000.00
Audio/video cassette duplicators $ 70,000.00
Assorted specialty equipment (heat transfers, imprinting) $ 60,000.00
PACKAGE SUBTOTAL 330,000.00
Output & End user Products
497,674 multilingual catalogs (monthly) $3,600,000.00
41,472 video cassettes (monthly) $1,200,000.00
PACKAGE SUBTOTAL $4,800,000.00
SUBTOTAL PUBLISHING PACKAGES $ 7,054,360.00
Production Personnel
Photo, Audio and Video Technicians
On-air talent (bilingual)
Post production editing team
Reproduction, packaging and distribution crew
Photojournalists, editors and publication staff
SUBTOTAL $2,800,000.00
Advertising, Publicity, Infomercials and Promotions
Local, national and international direct mail/marketing $ 180,000.00
International Trade Association Promotions
Catalogs and Video Catalogs $ 630,000.00
Seminar, trade show and exhibit facilities
(for sales of accounts, catalog and video subscriptions) $ 268,000.00
PACKAGE SUBTOTAL $ 1,078,000.00
GROSS TOTAL THIS PAGE $10,048,500.00
PLUS GROSS TOTAL PREVIOUS PAGE $ 8,117,000.00
TOTAL EXPENSES (BEFORE TAXES) $18,162,800.00
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
DETAILED USE OF FUNDS SUMMARY
Administration
Management Personnel (Including Board of Directors) $2,160,000.00 (.119)
Professional and Management Consulting $ 540,000.00 (.030)
Management Training Programs, Aids and Supplies $ 308,000.00 (.017)
SUBTOTAL $ 3,008,000.00 (16.7%)
Operations
Office and production facility leasing and rental $ 3,548,000.00 (.195)
Telecommunications/multimedia/on-line expense $1,336,000.00 (.074)
Travel, Transportation and Accommodations $ 225,000.00 (.012)
SUBTOTAL $ 5,109,000.00 (28.1%)
Promotions
Publishing Design Equipment $ 830,000.00 (.046)
Preproduction Equipment $ 360,000.00 (.020)
Publication Equipment $ 330,000.00 (.018)
Output & End User Products $4,800,000.00 (.154)
Production Personnel $2,800,000.00 (.264)
Advertising, Publicity, Infomercials and Promotions $1,078,000.00 (.059)
SUBTOTAL $10,048,500.00 (55.3%)
TOTAL $18,162,800.00 (100%)
Licensing, insurance, maintenance, permits, etc. $ 7,265,120.00 (40%*)
SUBTOTAL $25,427,920.00
Contingency fund $ 3,814,188.00 (15%)
TOTAL FUNDING REQUIRED $29,242,108.00
* Includes finder fees
PROJECTED MILESTONES
Day 1 1. Secure working agreement with key vendors/suppliers
Day 30 2. Identify colleges and universities in targeted areas to begin focus group studies
Day 45 3. Identify and interview prospective professional management consultants/directors/
personnel
Day 60 4. Secure venture funding agreements
Day 75 5. Secure U.S.A. office, operational and production facilities
Day 90 6. Recruit, hire and train production and administrative personnel
Day 120 7. Begin producing multilingual administrative, operational and promotional materials
Day 150 8. Initiate national and international marketing program
Day 180 9. Begin recruiting U.S.A. dealers, distributors and core client base
Day 270 10. Secure foreign office, operational and production facilities
Day 300 11. Begin recruiting foreign dealers, distributors and core client base
Day 360 12. Begin securing international distribution network
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
INVESTOR REPAYMENT PROGRAMS
National Distributorships
$12,000.00 fee x 12 Distributors $ 180,000.00
$6,000.00 x 12 months = $72,000.00 year (x 12) $ 864,000.00
Regional Distributorships
$1,000.00 fee x 144 Distributors $ 144,000.00
$500.00 x 12 months = $6,000.00 year (x 144) $ 864,000.00
Area Distributorships
$500.00 fee x 1,728 Distributors $ 864,000.00
$250.00 x 12 months = $3,000.00 (x 1,728) $ 5,184,000.00
SUBTOTAL FEES $ 1,188,000.00
SUBTOTAL SALES $ 6,912,000.00
National Corporate Accounts
$12,000.00 fee x 144 $ 1,728,000.00
$6,000.00 x 12 months = $72,000.00 (x144) $10,368,000.00
Corporate Accounts
$1,000.00 fee x 1,728 $ 1,728,000.00
$500.00 x 12 months = $6,000.00 (x 1,728) $10,368,000.00
Executive Accounts
$500.00 fee x 1,728 $ 864,000.00
$250.00 x 12 months = $3,000.00 (x 1,728) $ 5,184,000.00
SUBTOTAL $ 4,320,000.00
SUBTOTAL $25,920,000.00
Business Distributorships
$250.00 fee x 20,736 $ 5,184,000.00
$125.00 x 12 months = $1,500.00 (x 20,736) $31,104,000.00
Independent Dealerships
$50.00 fee x 248,837 $12,441,850.00
$25.00 x 12 months = $300.00 (x 248,837) $74,601,100.00
SUBTOTAL $18,625,850.00 (64.3%)
SUBTOTAL $105,755,100.00 (64.3%)
GROSS TOTAL $24,133,850.00 (100%)
GROSS TOTAL $138,587,100.00 (100%)
SUBTOTAL GROSS PARXTC INCOME $24,133,850.00 $55,434,840.00 (40%)
GROSS PARXTC INCOME $79,568,690.00
MINUS FIRST YEAR EXPENSE -$29,242,108.00
NET PARXTC INCOME $50,326,582.00
MINUS INITIAL INVESTMENT
GROSS INVESTOR RETURN ON INVESTMENT (36%) $18,117,570.00
DISCOUNTED INVESTOR INCOME (X.52) $ 9,421,136.00
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
APPENDIX
Definitions
Pilot Module
To develop, administer and expand an interactive, multilingual, multicultural
voice mail information, discount shopping and income opportunity
exchange network, as a pilot facility in the Los Angeles (International
Airport) area, to be duplicated in targeted Metropolitan Statistical Areas
(MSA's) throughout the United States and abroad, as vehicles for export
management services to new, small, home-based, medium and large
businesses from a dozen major cultural groups within each MSA.
Voice Mail Account
The access unit through which multilevel marketing representatives
(independent sales agents), distributors, licensees, dealers, members,
customers, clients, videomarketing sponsors, catalog advertisers, bulletin
board users, e-mail users and discount shopping members establish,
maintain, expand and interface with our in-house economic development
programs, systems and networks.
Multilevel marketing representatives
(independent sales agents)
Those part-time, full-time, under-, and unemployed, underprivileged,
incarcerated, inexperienced and/or unskilled youth, adults and senior
citizens wanting to earn additional income, using their existing resources
and those availabilities through our network of contacts, by promoting sales
of products and services available through small, medium, large, home-
based businesses sponsoring discounts to our network members through
print, catalog, Internet, e-mail, bulletin board, direct display and/or video
marketing channels.
Network members
Those individuals, businesses, nonprofit organizations, governmental
agencies and other public and private entities and/or groups of people
registered through a 12-month, 24-month, 36-month or 144-month
subscription voice mail account, along with one or more of our
communications services.
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
Interactive Activities Calendar, Information Sharing,
Discount Shopping and Income Opportunities Network
A set of a dozen multimedia publications providing an interactive,
multilingual information exchange system wherein those individuals with
similar purchasing/consumption interests, needs, and resources may make
available and/or acquire access to specific products, services, information
and support services to better define and accomplish immediate, short-term
and long-term economic and/or cultural goals and objectives, in a cost-
effective, time-sensitive manner.
Discount Shopping
An on-line research, order fulfillment, distribution and delivery system
providing Network Members with 24-hour access to local, national and
internationally-sourced products, services and activities, available at a
(minimum 10%) discount.
Income Opportunity
The ability of each Network Member to earn additional income by placing
orders on behalf of their friends, family, associates and contacts, via
catalog distribution, in-home video seminars, direct sales, etc.
Network Member Account I.D.#
The means through which all Members' primary interests are classified
through registration in the applicable Activities Calendar Information,
Discount Shopping and Income Opportunity Exchange Network. After
initial registration in any one Category, Members may designate their
interest in and/or register with any or all of the Categories, in descending
order of priority.
Network Member Services
As the underlying mission of the Network is to engender, establish,
administer, sustain and expand progressive individual and collective
economic development activities from local to national and international
core groups, we've designed each of the three enterprise functional
components to perform as an autonomous profit center, providing services
to network members first, but also to the public at large, to maximize
available capacity.
© Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i

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Personalized Advertising Representatives eXport Trading Company PARXTC Executive Summary 1999 Andrew Williams Jr v19990424

  • 1. Personalized Advertising Representatives' eXport Trading Company (P.A.R.X.T.C.) ©Copyright 1984 - 1999 - Andrew Williams and Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Disclaimer The enclosed confidential information is not intended to represent claims or representations of guaranteed or warranteed activities or earnings, or knowledge, endorsement or participation by any of the companies, products and/or services identified or described herein. This enclosed confidential information is submitted solely for the purpose of obtaining input, assistance and support in the effort to accomplish the goals and objectives described herein, and does not imply any promised input, assistance or support. All of the enclosed confidential information is submitted solely for review purposes, and must be returned, within 48 hours of sign-out date and time listed below, to the individual who authorized the review [either Andrew Williams or Karl McIntosh]. SIGN OUT AUTHORIZED BY [Andrew Williams or Karl McIntosh]: ____________________ DATE AND TIME OF AUTHORIZED SIGN-OUT: ________________________ AUTHORIZED SIGN-OUT TO: ________________________ _______________________ PLEASE PRINT SIGNATURE DATE AND TIME OF REQUIRED SIGN-IN [48 hours maximum]: ______________________ © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 2. Personalized Advertising Representatives' eXport Trading Company (P.A.R.X.T.C.) © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 3. TABLE OF CONTENTS EXECUTIVE SUMMARY Section I EQUITY FUNDING 1 TARGETED FUNDING SOURCES 2 MULTI-LEVEL, MULTILINGUAL MARKETING - WHY NOW? 2 ACCOUNT RETENTION PHILOSOPHY 2 MISSION STATEMENT 3 WHERE DO WE SEE THE COMPANY GOING? 3 WHAT ARE THE COMPANY'S MAIN MARKETS? 3 WHAT TYPE OF FINANCIAL CONTROLS WILL PREVENT DISORGANIZATION OR EMBEZZLING, HANDLE ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE, AS WELL AS ENSURE ADEQUATE INVENTORY, ETC.? GOALS AND OBJECTIVES 4 THE BARTER PROGRAM 5 COMMUNITY RESOURCE BANK CENTER 6 ACTIVITIES CALENDAR TOPICS 8 THE MARKETING PROGRAM Section II GLOBAL MARKETING STRATEGIES 9 GLOBAL MARKETING TACTICS 10 GLOBAL MARKETING SUPPORT 11 MEMBERSHIP PRODUCTS AND SERVICES Section III MEMBERSHIP PRODUCTS AND SERVICES 12 SERVICES PRICE LIST #1 13 SERVICES PRICE LIST #1 (Description) 14 SERVICES PRICE LIST #2 15 SERVICES PRICE LIST #2 (Description) 16 USE OF FUNDS Section IV USE OF FUNDS (Administration - 16.7%) 17 MANAGEMENT CONSULTANTS 19 Accounting Firms 19 Financial Agencies and Institutions 19 Legal Firms 19 Vendors and Suppliers 19 USE OF FUNDS (Operations - 28.1%) 20 USE OF FUNDS (Marketing - 55.3%) 21 IN HOUSE PROMOTIONS 21 AGENCY PROMOTIONS 21 SEMINARS 21 © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 4. TABLE OF CONTENTS (continued) DETAILED USE OF FUNDS Section V ADMINISTRATIVE EXPENSE 22 Management Personnel 22 Professional and Consulting Services 22 Management training programs, aids and supplies 22 OPERATIONAL EXPENSE 22 Office and production facility leasing & rental 22 Telecommunications (audio, data, text, video transmissions) 22 Travel, Accommodations & Transportation 22 PROMOTIONAL EXPENSE 23 Publishing Design Equipment 23 Preproduction Equipment 23 Publication Equipment 23 Output & End user Products 23 Production Personnel 23 Advertising, Publicity, Infomercials and Promotions 23 DETAILED USE OF FUNDS SUMMARY 24 Administration 24 Operations 24 Promotions 24 Licensing, insurance, maintenance, permits, etc. 24 Contingency fund 24 PROJECTED MILESTONES 24 INVESTOR REPAYMENT PROGRAMS 25 National Distributorships 25 Regional Distributorships 25 Area Distributorships 25 National Corporate Accounts 25 Corporate Accounts 25 Executive Accounts 25 Business Distributorships 25 Independent Dealerships 25 APPENDIX Section VI Definitions 26 © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 6. EQUITY FUNDING Personalized Advertising Representatives' eXport Trading Company (PARXTC) seeks equity funding in the aggregate of $29 Million U.S. to organize, staff and administer an export trading company (formed under the Export Trading Act of 1982) capable of accomplishing the following milestones within a 3-year period from inception: ¬ develop and expand a multicultural consumer shopping discount membership service, providing 24 hour multilingual subscription access (catalog, video catalog, voice mail and on-line) to a variety of clients' goods and services, sourced locally, nationally and internationally. PARXTC would use automated order processing and fulfillment services, with monthly detailed statements for all businesses, customers and marketing representatives; ¬ develop and expand a multilingual, multimedia publishing network (print catalog, video catalog, and voice mail and on-line Activities Calendar, Information Center and Shopping Network) in each targeted U.S. Metropolitan Statistical Area (MSA), through which to promote and distribute our (and our clients') proprietary goods and services; ¬ provide income opportunities, on-the-job training and/or career development to 3,456 independent distributors and dealers, and 6- member in-house multimedia publication staff in each of 12 targeted U.S.A. MSA's (41,474 total). ¬ provide low cost/high quality sales, marketing, administrative and/or import/export management services to 41,474 home-office, small (1- 499 employees) and medium (400-999 employees) sized businesses in each of 12 U.S. MSA's (497,688) to increase sales of their commodities, equipment, goods and services to markets: ¬ locally, to consumers in other languages/cultures ¬ nationally, through branch sites and their independent sales representatives; ¬ internationally through branch sites and their independent sales representatives In all cases, PARXTC strives to match clients' needs, resources and timetables with available global, foreign, federal, regional, state, county, municipal, corporate, nonprofit, public and private support services. The decision to operate PARXTC as a miniconglomerate maximizes each unit's particular competitive advantages, enabling each to respond proactively to changing market and industry conditions. © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 7. TARGETED FUNDING SOURCES First tier anchor investment targets are foreign trade consulates, harbors, airports, universities, governmental trade agencies (federal, state, county and municipal) and telecommunications/media corporations. Second tier financing will be generated by fees paid for national, regional, area, community and independent distributorships, along with consumer dealerships (authorization to place orders for discounted products and services for themselves and others) in targeted metropolitan statistical areas in the United States. Consequently, first tier financing can be in the form of Irrevocable Letters of Credit (ILOC's) providing minimum investor exposure, maximum return on investment, and an accelerated buy- out option in consideration for a 36% (aggregate) equity share. MULTI-LEVEL, MULTILINGUAL MARKETING - WHY NOW? Utilizing a multi-level, multilingual marketing program: ¬ maximizes our capital to sales ratio; ¬ generates cash flow through distributorship registration fees; and ¬ guarantees a core customer base for all four PARXTC divisions. Perhaps more importantly, that tactic allows us to penetrate previously untapped markets to recruit distributors, dealers and, ultimately, consumers, i.e., ¬ non-English-speaking and bilingual multi-level consumer communities in the United States and abroad; via ¬ non-English-speaking and bilingual multi-level marketing agents A multi-level, multilingual communications network: ¬ empowers consumers to select goods and services at the most competitive price, with a wider selection from local, national and international sources; ¬ penetrates new markets for businesses, through different cultural and lingual groups in local, national and international communities; and ¬ employs bilingual and multilingual students and adults in new occupations, expands their career opportunities and offers hands-on entrepreneurial training. Bringing PARXTC to full operating status to maximize competitive advantages not only enables the firm to capture market share from more established players. It also positions PARXTC to broker complementary, high-quality products and services, thereby positioning the firm as the distribution and delivery system of choice for those larger companies (at a profit to us), while reinforcing customer loyalty to PARXTC. ACCOUNT RETENTION PHILOSOPHY ¬ Sell to the most sophisticated and demanding buyers and channels. ¬ Seek out buyers with the most difficult needs. ¬ Establish norms of performance and production exceeding the toughest regulatory and specificatory standards. ¬ Source from the most advanced local and international home-based suppliers. ¬ Treat employees and representatives (licensees, distributors, dealers) as permanent. ¬ Establish outstanding competitors as motivators. © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 8. MISSION STATEMENT Recognizing that small- (1-499 employees) and medium- (500 - 999 employees) sized business owners traditionally lack resources and expertise to market their services to all potentially profitable markets in the United States and abroad, we formed PARXTC to develop the packaging, promotion and support services they need, but can only afford through a self- sustaining, cooperative effort on their behalf: ¬ by applying multimedia advertising design skills to grow a multi-faceted professional image on behalf of distinct business segments, the cost of personalizing each package to specific types of businesses assures individual affordability for each business member-client. ¬ by developing and coordinating a 24-hour, automated, multilingual, multinational, live, voice mail, e-mail, bulletin board and Internet communications/shopping/ information network to offer consumers worldwide access to discounted (volume-based) high quality goods and services, we build long-term customer loyalty to our, and our member-clients' product/service lines. ¬ the provision of a private barter pool through which businesses and ¬ consumers can increase their spending, regardless of general economic conditions, spurs local community development and increases the local, state and federal tax base. WHERE DO WE SEE THE COMPANY GOING? Achieving sales hubs in targeted United States Metropolitan Statistical Areas (MSA's) is the first step to package and represents our, and our clients' products and services to targeted foreign markets... in effect, growing a domestic sales management agency into an export management consultancy. By securing funding targets, PARXTC would acquire franchises through which to: ¬ rapidly gain expert marketing, management, and operating systems; and ¬ achieve credible positioning to establish a recognizable brand image (our copyrighted logo, trade marks and service marks) on behalf of our, and our clients', proprietary products and services. WHAT ARE THE COMPANY'S MAIN MARKETS? ¬ the largely untapped markets of micro-, small- and medium-sized businesses in mainstream and ethnic communities in the largest U.S. MSA's; ¬ .02% of the 20 million home/portable computer users now generating or desiring to generate home-based business income; and ¬ .01% of the $48 billion annual non-store consumer purchases made in the United States. WHAT TYPE OF FINANCIAL CONTROLS WILL PREVENT DISORGANIZATION OR EMBEZZLING, HANDLE ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE, AS WELL AS ENSURE ADEQUATE INVENTORY, ETC.? The proprietary software installed to monitor, transact and detail sales, commission barter, invoicing and order fulfillment for cash, credit and barter transactions is designed with built-in security safeguards limiting control through a credit card-like instrument. © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 9. GOALS AND OBJECTIVES 1. to provide the General Public with up to date consumer information about any given product or service, by operating a referral service among the multicultural representatives from business, political, educational, religious, social, scientific, financial and public service communities in Metropolitan Statistical Areas (MSA's) targeted for market development. 2. to promote clear cut accounting, tax and financial planning counseling, training and procedures to improve our clients' (advertising sponsors and consumers) productivity and add stability to our long-term relationships. 3. to educate small business owners about the values, uses and methods of marketing their products and services, cooperatively, on a long-term basis. 4. to build mailing, telephone and contact lists from markets targeted by our clients, associates and representatives. 5. to help our clients, associates, representatives and customers to better identify, define and expand their markets and market share. 6. to provide new, small and home-based business owners with ways to identify and reach new prospects, referrals and customers. 7. to build a global network of manufacturers, distributors, promotional (advertising, publicity, public relations, marketing and sales) agencies, nonprofit organizations and their patrons. 8. to build a resource bank of businesses, suppliers, vendors, subcontractors and consultants who can provide any given support service with a high degree of quality and moderate cost to members of our referral network. 9. to design, create, promote, distribute and disseminate multimedia (including animated), multicultural, multilingual, print, photographic, audiographic, videographic, dramatic and comedic commercials, documentaries, and other promotional materials... to improve the clarity and sharpen the impact of our clients' and our own advertising projects, programs and campaigns. 10. to produce and distribute cooperative marketing publications to promote PARXTC products, services, activities and campaigns. 11. to establish, operate and administer national, intercontinental and international organizations of bilingual and multilingual independent sales agents, distributors and dealers to promote and sell our products, services and events, through 36 month, renewable contracts. 12. to provide members of those sales organizations with new income opportunities, a wide selection of products, services and activities to promote and sell; sales incentives and dealership opportunities. © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 10. THE BARTER PROGRAM The best medicine to help the United States' chronically criminal, homeless, illiterate, physically challenged, veteran, underemployed and unemployed youth, adult and senior population initiate and sustain a livelihood at or exceeding America's median per capita household income, without welfare, crime or other subsidized governmental assistance is to engender an earning/spending boom. PARXTC ¬ラマ0empowers enterprising U.S. consumers to generate additional earnings on a part-time basis, throughout the day and night, despite present age, credit worthiness, gender, language, culture, nationality, living conditions, geographic location, health or criminal status. ¬ラマ1increases the sales of small and medium sized businesses to new markets on a local, national and international basis. ¬ラマ2educates and assists businesses and consumers in the application of the latest (and emerging) technologies, communications systems and information networks - accessible by mail, phone, computer, fax, e-mail, and any other means of communication from anywhere on, or within reach of the Earth, 24 hours a day. ¬ラマ3introduces and administers a closed-end multilevel marketing program that enables the consumer member to: ¬ラヒ0enjoy discounted purchasing opportunities for a wide variety of products and services produced and promoted by varying ethnic artisans and businesses. ¬ラヒ1earn additional income by placing order for people they know and meet, in person, by phone, computer, etc. ¬ラヒ2achieve personal economic freedom and independence by bartering their skills, talents and abilities with other consumer and business members. Thanks to the tandem of decreasing information technology costs and rising hardware/software performance standards, elements of the coming information superhighway and wireless communications applications can be utilized NOW to: ¬ラマ0track and administer the barter system herein described; ¬ラマ1offer real time interactive accounting for all transactions and participants; ¬ラマ2produce month-end financial statements for all participants, with quarterly, semiannual and annual summaries; ¬ラマ3conduct 24-hour, multilingual on-line and voice mail customer services and technical support to accomplish all of the above at a minimum cost for both business and consumer uses. © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 11. COMMUNITY RESOURCE BANK CENTER Members and Associates of the Personalized Advertising Representatives' (P.A.R.) Referral Network hold the belief that each human being has at least one talent, skill, ability, experience or expertise that he or she can consciously apply to increase self- esteem, earn additional income, acquire vocational or educational assistance, or to accomplish any other goal or objective. Our prime objective is to match those human resources with existing needs in each community, in order to upgrade community development, while providing a tangible sample of how well each individual can apply his or her resources. Community development is a never-ending process. There will never be too many people involved; and each person's participation and progress can be accounted for and credited to his or her permanent Activities Journal, kept at the Center. Additional benefits to community service efforts include: 1. Establishing a Community Journal that includes historically important information about the people and activities in each area. A. The consistent documentation of each person's life, as the only true history we'll ever have of what happens throughout the rest of the century and the rest of our lives. B. While few individuals are equipped or prepared to undertake the documenting, cross-referencing and retrieving of daily events in their lives, one centralized hub, so equipped, can provide that service to an almost unlimited number of people. 2. As community development efforts begin at one location, neighbors notice and respond with their own projects, to conscientious efforts on the part of the Center participants, a block by block, area by area involvement would increase the property value of all neighborhood owners. 3. As community involvement spreads, underutilized space, facilities, equipment, vehicles, supplies, materials and manpower become noticed and applied; the needs of the growing number of people involve spread to include those seeking constructive use of available, unused resources. 4. Untapped human resources - youth, single parents, senior citizens, illiterate adults, the underemployed, unemployed, homeless, as well as rehabilitating convicts and addicts, would have the freedom and access to the means of improving their self-respect and self-esteem, by applying their time and energy to projects that gain them recognition and appreciation; or results in unseen contributions that nevertheless assist the redevelopment effort, through their self- development achievements. 5. Eager youth can gain valuable guidance and assistance from those experienced craftspersons, tradespersons and business owners willing and able to apply their knowledge and facts in demonstrating, coaching and directing willing learners. A.Youth need alternatives to gangs and crime, true enough, but not all kids fit in the educational system. They need hands-on experience, directly related to their area(s) of interest and expertise. B. Still other kids seek any alternative to the dead-end jobs and lives they see around them. Developing entrepreneurial skills is the only challenge that may fully engage their interest, so the Center, working with the business owners in the community could provide them with guidance and encouragement. 6. Just as there is an abundance of illiterate youth and adults in the communities across the country, some too ashamed to seek help; there are millions of senior citizens - even youth - whose reading ability, communication skills, time and energy could change the lives of people around them; snowballing the self-esteem and self- development efforts of all participants and the Center itself. © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 12. COMMUNITY RESOURCE BANK CENTER (continued) 7. We all decry the need for better educating our youth, but overlook their willingness to apply themselves to what most interests and excites their imagination; the t.v. programs, radio broadcasts; videos; magazines and discussions that entertain their waking hours. Yet, no one can effect change without affecting the cause of the problems. A. By expanding the concept of journalizing local events to include all known forms of recording: print, photographic, sketch-graphic, audiographic, videographic, and digital a Community Center could produce culturally, instructionally and educationally entertaining publications, showcasing performers that the youth would idolize and model themselves after... their family, friends, relatives and associates - the stars of the show. 8. People in each community face minor problems that can quickly become life and death crises when they don't know where to turn for help. A. By simply staffing or coordinating (through call forwarding) a 24- hour live personnel referral service to handle any need, the Center justifies its existence the first time someone calls, when every other source of assistance is closed. 9. This is a multilingual, multicultural society and community. Part of the Center's responsibility would include establishing a network of bilingual associates who speak and writ in English, plus a language common to one or more peoples in each community. 10. Few individuals or businesses in the community can afford to make available a fully equipped desktop publishing system, interfaced with a voice messaging exchange system and videorecording/ editing facilities to the general public. A.The Center could do so, allowing local "disadvantaged" residents the opportunity to gain hands-on experience on major projects with which they would never otherwise be able to participate. 11. Along with the abundance of negative influences in the community, there is also an overabundance of artistic and creative talents among youth and adults. With a minimum of amount of space and equipment, the Center could house on-site a complete seriograph (silk-screening) operation to produce individual and group fine art and commercial products marketable throughout the local community, and throughout the world. A. In a space the size of a two-car garage, offset printing/lithographic facilities can be set up to produce prints, posters and publications in various languages that would promote Center products and services, while providing a consistent training program for youth interested in applying those skills in a hobby or career. 12. Because illiteracy is a growing problem throughout all cultural groups, the need will increase for more visual forms of communication and education. A. Becoming more available to homes and businesses throughout the country and world are videocassette recorders and players. With little more than a two-tier shelf space about six (6) feet wide, the Center could install a video editing/duplicating station with which to assemble video material collected from one or more individuals, journalizing events in their lives, and in the life of the community. B. Inventions and products introduced by "minority" Americans are too numerous to include here, but have received little attention during "Black" History Month, or any other time, except in a passing way. Latino, Native American and Asian innovators get even less general recognition. C. Although the Center would be assembling publications on-site, it could, in effect, coordinate assembly operations throughout the community, from each cultural group, fostering improved cultural communications, understanding and relationships. © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 13. ACTIVITIES CALENDAR TOPICS Arts In Focus Body Active Learning Minds New, Small, Home-based and International News On the Air, In the Air Opinions, Comments, and Questions Personalized Pen Pals Politics, Technology, the Humanities and the Environment Spiritual Essentials Student Spotlight Women's World © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 15. GLOBAL MARKETING STRATEGY 1. Research, identify, classify, record and track import needs and resources of underdeveloped, developing, industrialized and post-industrialized countries, individually and collectively [through signatories of multinational trade agreements]. 2. Explore and exploit "free trade" and "trade zone" and agreements between the United States, Canada and Mexico, the Pacific Rim and other countries having a "most favorable" trading status with the United States, in descending order of trade volume with the U.S. and each state targeted for market penetration. 3. Identify, package and market those products and services targeted to people, businesses, nonprofit organizations, governmental agencies and private foundations seeking to establish advertising, public relations, sales and/or distribution support services within the United States and other countries targeted for PARXTC market development programs. 4. Link the most convenient order fulfillment methods and procedures with the sales of products and services paying a commission substantial enough to adequately compensate PARXTC, its distributors and dealers. 5. Get the help and support of selected service providers, that of their respective city, county, state and federal governments benefitting from increased sales generated through PARXTC sales programs. 6. Network with the United States Small Business Administration, International Trade Association, federal, regional, state, county, municipal and private efforts to identify, involve, package and promote locally based women, minority, disadvantaged, home-based and mainstream business enterprises (throughout the local community and abroad). 7. Identify and mobilize multicultural media (print, broadcast and digital) representatives in each targeted nation to provide national coverage for those foreign and domestic advertising sponsors targeting ethnic communities, and to journalize international trade development plans, programs and opportunities as they relate to the local audiences they serve. 8. Identify, coordinate and expand activities of frequent business travelers to, from and through areas targeted for market development programs in California, other U.S. locations and targeted areas throughout the world. 9. Assemble, publish and distribute business start-up packages for each area targeted for market development programs, linking them with cooperative advertising and promotional campaigns in local, national and international media. 10. Establish and coordinate trade relations with and among bilingual and multilingual students, resident aliens and foreign visitors as go-betweens to network with their respective countries on our clients' behalf on a part-time or full-time basis. 11. Recruit and coordinate representatives from each cultural/ethnic group in targeted communities to link historical, geographic, economic and social developments occurring simultaneously in the local community, and on the global scene. 12. Identify, record, edit ( with multilingual titling, package, publish, syndicate and distribute human interest and self-development materials involving targeting individuals, associates, representatives, etc., through public access, network, independent, cable, satellite and international media. © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 16. GLOBAL MARKETING TACTICS 1. Select products and services marketable to a local, national and global clientele, and arrange a dealership, distributorship, licensee or other arrangement with each service provider, securing a commission or purchase discount for all sales placed through our network. 2. Acquire access to local, national and international "800" (charged to client), "900" (charged to caller) and bulk-rate long-distance telephone line(s). 3. Develop and produce multimedia (print, graphic, photographic, audiographic, videographic and digital) promotional material for all lines, individually and collectively. 4. Translate promotional material into selected lingual categories (using bilingual students, validated by professional linguists), with cover letters specifically targeted to each market target. 5. Secure voice mail accounts, one per language, offering callers the option of placing orders only, to get additional information, or to be sent promotional materials. Leads will be referred to appropriate field representatives. 6. For each language, have Attendant record one greeting for the main box: "This is the PARXTC Global Marketing Network. If you know the product or service I.D. number you are inquiring about, please enter your name, address, including zip code, contact phone number, customer account number, if any, and your purchasing requirements. To receive catalogs, videocassettes, a fax-sheet, e-mail or other promotional material, please leave the identification information already requested, indicate your choice, and whether and when you would like to have one of our representatives in your area to contact you." 7. Establish global access to a network of fax machines, voice mail exchange systems, Web- pages, electronic publishing, appointment-setting, meeting, teleconferencing and videoconferencing facilities in all targeted MSA's. 8. Develop and apply telemarketing scripts, using Toll Free Directories, National Directors of Addresses, Telephone, Fax, E-mail and Web-page "white" and "yellow" page sources: a. to identify purchasing agents and sources; b. to register our name and contact number on behalf of our clients and ourselves; to bid for available contracts, work, etc. c. to arrange a follow-up call, demonstration, mailing, interview, etc.; and, when possible d. to register the prospective client as a referral source. 9. Produce and distribute promotional material to prospects [targeted by Standard Industrialized Code (S.I.C.), from our on-going research program, referrals, leads, sales agents or other means], in a newsletter, directory, Web-page, magazine quality catalog, or two page spread for each, or in a videomagazine format, introducing our products, services and/or clients, individually and collectively. 10. Document responses and route inquiries, prospects, orders and related information to respective service providers' voice mail boxes, e-mail addresses, etc., logging in the date, time, account number and other verification data. 11. Secure referral agreement with new prospects and clients when none are currently registered with us to do the work or deliver the product as desired by the prospective customer. 12. Collect and distribute commission/referral revenue to sales agents, their upline(s) and/or downline(s), if any, translators, home-based telemarketing appointment setters, and other support personnel. © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 17. GLOBAL MARKETING SUPPORT Please review the enclosed material describing our agency's products and services, and picture them all focused on helping you to better accomplish your and your clients' immediate, developing and long-term goals and objectives. Since 1984, we have been developing ways and means to promote the products and services of new and small business owners on a local, national and international basis, but most have been unable to use the full range of assistance we can provide. For a limited time, we are offering year-round national and international marketing support and information management services for clients with an existing U.S. sales force and/or customer base, to coordinate efforts in a dozen states, and Washington, D.C., for as little as $25,000.00 per year, less than staffing branch office in the U.S. That would include any combination of answering services, as-needed office space and communications facilities (fax, teleconferencing, videotaping, etc.), and a national headquarters located in or near a World Trade Center complex, to coordinate appointment settings, purchases, and more. We can do an intensive start-up project, including a dozen branch offices, a publicity and media (print, broadcast and Internet) campaign and 24 hour "800" support services for $1,000,000.00 per year. Our service does not stop there. We can establish and manage an international sales agency, with offices in the United States and Europe (London); provide staffing, international multilingual "800" support, daily t.v. and radio commercials, with state-of-the-art computer and telecommunications order fulfillment services around the world for as little as $5,000,000.00 per year. In either case, our fee is reasonable, at 12.5% of the budget we'd be handling for you, or a minimum of $2,500.00 per city, per language, per month, or $25,000.00 per month, to cover a dozen U.S. cities, in a dozen languages, plus expenses. Those, of course, are general pricing guidelines, and we're willing to work with you to provide individualized packaging to fit your and your clients' needs, budget and timetable. Ask about our specialized marketing support services available in the United States and abroad. © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 19. MEMBERSHIP PRODUCTS AND SERVICES Private voice mail box Available 24 hours daily to record all messages Greeting in your own voice - change as often as you choose Remote access by cellular or direct dial - local or long distance Pager alert available Your private voice mail network Up to 100 or more voice mailbox network Send messages to all - with one phone call Use to coordinate any group - church, school, sales, etc. Set up a message center to coordinate plans and schedules Alert all members with last-minute changes Multilingual, multi-cultural voice mail Activities Calendar 12 Activities Calendars from which to choose - varied topics Meet friends, business associates, customers Updated daily with new activities - add yours! 12 languages and cultures to explore Available in over a dozen U.S. cities, plus a dozen foreign cities Multilingual E-Mail Account Communicate by computer Share information and ideas Fit messaging into your schedule - 24 hours a day Low cost messaging around town, or around the world Low cost Internet access On-line Shopping Network Handle shopping by computer Automated order processing, billing & delivery Hundreds of products and services to select Satisfaction 100% guaranteed Access to import/export products and services Automated currency exchange and accounting (import) BUY - SELL or TRADE products and services National Shopping Catalog and Video Catalog Delivered to your door, monthly Average 20% purchase discount (minimum 10% discount) Income opportunities - sell to others and keep the profit Promote your own products and services Buy catalogs in bulk (2 for $.75) and sell to others ($1.00 each retail) Dealership opportunities - make money part-time or full-time from home Access to Barter and Exchange Network to buy and sell products and services Earn credits through purchases, order-taking and work projects © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 20. SERVICES PRICE LIST #1 ID# Registration Monthly 12-month Year #1 Total Cash Savings or Fee Expense Expense Expense 36-month Discount Investment (Year 2,3) ( Expense Cost (52%) Return (1) (2) 1A. $ 19.95 $ 0.00 $ 19.95 $ 19.95 $ 59.85 N/A N/A 1B. $ 25.00 $ 12.50$ 150.00 $ 175.00 $ 475.00 $ 247.00 $ 228.00 1C. $ 25.00 $ 12.50$ 150.00 $ 175.00 $ 475.00 $ 247.00 $ 228.00 1D. $ 25.00 $ 12.50$ 150.00 $ 175.00 $ 475.00 $ 247.00 $ 228.00 1E. $ 25.00 $ 12.50$ 150.00 $ 175.00 $ 475.00 $ 247.00 $ 228.00 1F. $ 50.00 $ 25.00$ 300.00 $ 350.00 $ 950.00 $ 494.00 $ 456.00 1G. $ 75.00 $ 37.50$ 450.00 $ 525.00 $ 1,425.00 $ 741.00 $ 684.00 1H. $ 75.00 $ 37.50$ 450.00 $ 525.00 $ 1,425.00 $ 741.00 $ 684.00 1I. $ 100.00 $ 50.00$ 600.00 $ 700.00 $ 1,900.00 $ 988.00 $ 912.00 1J. $ 250.00 $ 125.00 $ 1,500.00 $ 1,750.00 $ 4,750.00 $ 2,470.00 $ 2,280.00 1K. $ 500.00 $ 250.00 $ 3,000.00 $ 3,500.00 $ 10,500.00 $ 5,460.00 $ 5,040.00 1L. $ 1,000.00 $ 500.00 $ 6,000.00 $ 7,000.00 $ 13,000.00 $ 6,760.00 $ 6,240.00 1M. $12,000.00 $6,000.00 $72,000.00 $84,000.00 $156,000.00 $81,120.00 $74,880.00 © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 21. SERVICES PRICE LIST #1 (Description) ID# 1A. Catalog subscription (180 pages each month) 1B. Private 24-hour voice mail box (maximum 100 messages per day) 1C. Private e-mail box (shopping network / bulletin board access) 1D. Daily voice mail classified ad (offering customer discounts, sales promotions, announcements, more) 1E. Daily e-mail classified ad (offering customer discounts, sales promotions, announcements, more via Web-link) 1F. Catalog Distributor Listing (per city, per lingual edition) (14,400 catalogs distributed per city, per month) 1G. 100 Catalogs (per city, per lingual edition) (list price $2.00 each) 1H. Video catalog subscription (per city, per lingual edition) (earn commissions by placing orders for others) 1I. Business card display ad (per catalog, per lingual edition) Videomagazine Subscription 1J. Business Consulting Accounts (up to 5 hours per month) Sales Promotions Advertising Specialties National Advertising and Publicity Cooperative advertising at a Savings Opening New Sales Territories Import/Export Opportunities Computer Systems and Software Discount Legal, Health and Dental Programs Catalog Distributor Listing (one city, one lingual edition) Barter and Trade Program Registration Videomagazine Subscription 1K. Executive Account All Consulting Account Benefits (above) Catalog Subscription Private Voice Mail Box Daily Voice Mail Classified Ad Daily E-Mail Classified Ad Business Card Catalog Display Ad (one city, one edition) Web-page design, installation, maintenance, order fulfillment 1L. Corporate Account All Executive Account Benefits (above) 30 minute videotaping session, editing to produce 3-minute video commercial) Airing of 3-minute commercial in videomagazine (per city, per lingual edition) 1M. National Account All Corporate Account Benefits (above) Duplicated in 14 U.S. cities each month (or in 12 lingual editions, per city) © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 22. SERVICES PRICE LIST #2 © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 23. SERVICES PRICE LIST #2 (Description) © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 25. USE OF FUNDS Administration - 16.7% Marketing research, product development, distribution channels and methods, financial planning, human resource applications, trade relations and exploitation/protection of intellectual properties are all vital elements of our business enterprise. Our in-house management team shall work closely with a Board of Directors, Board of Advisors and management consultants currently active in all relevant fields: 1. Chief Executive Officer - articulates and actualizes PARXTC's mission, ensuring the development, creation, establishment, maintenance and growth of the corporate culture throughout the management team, members of the board of directors, key personnel and distributorship network; liaison with all management and professional consultancies 2. Chief Operations Officer - crafts and controls the day to day activity of each office and production facility, guided by the long-term PARXTC penetration strategy throughout each targeted market; responsible for management and operation of H.Q. executive office franchises for internal use and for use by distributors and clients. 3. Chief Financial Officer - charged with charting PARXTC finances, from the initial search for first tier and second tier venture funding, through the tracking of sales, commissions and administration of a global sales network of independent dealers and distributorships, including barter and exchange transactions; provides financial planning and counseling services for all personnel; liaison with international accounting and financial planning consultants. 4. Chief Legal Officer - review, selection and administration of PARXTC distributorship agreements, franchises and dealerships acquired by PARXTC and ensures compliance with local, national and international business statutes applicable to full scale operation; preparation, filing and administration of copyright, trademark and other intellectual property assets; liaison with international law firm, governmental agencies and related entities. 5. Director, Marketing and Sales - development, application, coordination and expansion of multilingual, multilevel and multicultural marketing and sales programs to promote proprietary PARXTC products, services and activities AND those of PARXTC clientele, throughout the Unites States and abroad. 6. Director, Multimedia Publications - responsible for the coherent, effective and coordinated design, development, production, placement/distribution of promotional content and collateral material for PARXTC and its clients' campaigns, tailored to micro and macro marketing targets; oversees the hiring, training, staffing, equipping, mobilizing and coordinating of mobile and studio recording units, editing and production personnel; supplies management, key personnel, distributors, clients and consumer members with all orientation, training, operational and promotional output, in all languages and media. © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 26. USE OF FUNDS Administration - 16.7% (continued) 7. Director, Import/Export Management Services - develops and exploit cooperative marketing opportunities through Premier Membership in the World Trade Center Association, United States Chambers of Commerce, and various trade consulates in the United States and abroad, to coordinate the sales, order fulfillment, shipping, delivery, billing, collection and related activities necessary to achieve PARXTC global marketing strategies. 8. Director, Information/Technology Systems - performs all necessary activities to install and maintain the PARXTC client server, Web-site network, proprietary Web Pages (and links), the global PARXTC intranet, the Interactive Activities Calendar, Discount Shopping and Income Opportunities Network; internal and publicly accessed telecommunications and voice mail networks (of potentially 497,674+ users). 9. Director, New Product Development - identification, design, development, production, packaging, introduction, modification and diversification of proprietary PARXTC products and services. 10. Director, Human Resources - research, acquisition, orientation, application and administration of management training programs, aids and supplies; development, conducting and coordination of multilingual recruitment programs, via seminars, workshops, advertisements, executive search and other means to find, develop and retain top quality personnel at all levels within the company. a. While confident that our proprietary products, services and programs can successfully compete in domestic and foreign markets, adapting the following proven, respected management programs, aids and techniques assure a solid training platform for our independent licensees, distributors and dealers: i. ENTREPRENEUR, INC. publishes manuals and, in some cases, videos and software, to help each level of our independent sales force develop marketing plans tailored to their specific circumstances. Furthermore, Entrepreneur, Inc., distributes business guides for each of the component businesses our teams will operate, ensuring integrated, hands-on management expertise, from top to bottom. Finally, the company distributes software and manuals encompassing a wide range of correspondence templates, including response to inquiries, press releases, inter-office memoranda, etc., thus assuring competent, articulate communications essential to establish and maintain professional credibility. ii. Computer Business Systems, Inc. (CBS) offers a complete management and marketing program to operate and promote voice mail, desktop publishing and computer-related services. Employing their program at each branch gives our personnel the basic overview of daily operational activities; allows network-wide transfer of key management data and encourages creative applications of our income-generating programs. © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 27. USE OF FUNDS Administration - 16.7% (continued) Management Consultants - key areas of expertise required Accounting Firms b. Risk management c. Multilingual staff d. Start-up assistance e. Computer consulting f. Accounting and auditing g. Worldwide office network h. Tax planning and compliance i. Management advisory services j. Business and strategic planning k. International financial and tax services l. Expansion of foreign based companies into the U.S. Financial agencies and institutions m. Letters of credit n. Multilingual staff o. Worldwide office network p. Foreign exchange remittance q. Foreign exchange collection r. Back to back letters of credit s. Import/export funding assistance t. International expertise (goods and services) u. Immigrant investment via business opportunities Legal firms v. Multilingual staff w. Import/export expertise x. Foreign language capability y. Intellectual property expertise z. Worldwide expertise and client base aa. Electronically linked offices worldwide ab. Clientele of syndicates of U.S. and foreign investors ac. Long-standing relationships with domestic and foreign government agencies ad. Copyright, trademark, patent and other intellectual property protection expertise ae. Monitoring and reporting on U.S. and foreign legislative, regulatory and political activities Vendors and Suppliers Those exhibiting the most comprehensive capability of servicing our operational and customer characteristics will receive priority consideration. Final selections, however, will be greatly affected by participating firms' commitment and ability to help us complete the final developmental stage (including, but not limited to, preliminary advisory services, designation of an executive liaison and discussions involving collaborative strategic alliance efforts). © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 28. USE OF FUNDS Operations - 28.1% Finding or establishing overnight presence in 12 United States sites (plus two headquarters sites) and a dozen or more foreign markets can be cost effective only by using one or more executive office suite networks. All offer similar business identity, receptionist, and secretarial services, as well as access to telecommunications, teleconferencing, meeting and, in some cases, videoconferencing facilities. Key sites requiring full-time leases are the U.S. and foreign-based National and International Headquarters, respectively. These four locations shall house the multimedia computing/ telecommunications nerve centers through which data, text, graphics, sound, pictures and video images from all branches shall be routed for review and editing, prior to publication and dissemination of newsletters, catalogs and promotional material. Separate production facilities shall be set up to coordinate photographic, audiographic and videographic recordings, editing and processing to produce duplicable masters, with multilingual titling. The ultimate goal is to secure or build a global headquarters, with Las Vegas, Nevada, USA, as the preferred site. Franchised as an executive office suite center, the PARXTC global HQ would be licensed to generate referral commissions and support services from all other centers in the 100+ city network. A state of the art telecommunications package is the real nerve center of our enterprises. Beginning with local, national and international "800" and "900" accounts, the system is able to effect multimedia digital transmission of data, text, audio and video content through interactive networking of live, voice mail, e-mail and bulletin board menus, by up to 41,472 independent marketing representatives and as many as 5,184,000 business/consumer users, representing a dozen or more lingual/cultural groups. Benefits of such a system: ¬ラマ0empowers consumers to select goods and services at the most competitive price, with a wider selection from local, national and international sources; ¬ラマ1penetrates new markets for businesses, through different cultural and lingual groups in local, national and international communities; ¬ラマ2employs monolingual, bilingual and multilingual students and adults in translation, interpretation, marketing, media, publishing, public relations, telecommunications, financial management, direct marketing and import/eXport functions; ¬ラマ3builds an expanding database resource pool to better identify and service needs of both businesses and consumers (as well as independent agents, dealers, distributors and company personnel); ¬ラマ4encourages and supports home-office, small- and medium-sized business participation with affordable export research, sales opportunities, trade shows and cooperative promotions; ¬ラマ5educates a wider pool of Americans how to utilize and assist available corporate, governmental, nonprofit, public and private efforts impacting them individually and collectively, to achieve widespread grassroots economic development, despite geographical, social, environmental, political or other restraints; ¬ラマ6educates a growing number of young Americans to apply existing and emerging technological products and services to encourage and sustain local economic development efforts through new technological applications, thereby effectively equipping them to develop as our future leaders. © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 29. USE OF FUNDS Marketing - 55.3% IN HOUSE PROMOTIONS The multilingual PARXTC sales network of licensees, distributors and dealers will market, promote and sell commodities, equipment, products and services (goods and services) from micro (0-5 employees), small (5-499 employees) to medium (500 - 999) employees sized businesses from each of 12 targeted U.S.A. metropolitan Statistical Area (MSA), plus two headquarters sites (for domestic and foreign operations, respectively). PARXTC in-house multimedia publishing unit shall produce 14,400 multilingual catalogs per MSA (201,600 total) and 144 videocatalogs (2,016 total) each month, distributed at- cost to participating advertising sponsors for retail sale and promotional give-aways to their customers and prospects [each catalog devotes 25% of its space to promote PARXTC proprietary products, programs and services]. Additional catalogs and videocatalogs shall be distributed through aggressive sales and subscription campaigns targeting governmental, corporate, business, consumer and retail markets. Each division of the publishing unit (print and video) functions as an independent subsidiary, committed first to produce in-house materials, but to also apply underutilized capacity to perform (at a profit) services for clients and the general public. The PARXTC Internet Home Page and resident server host offers direct access to in- house services, and link-jump access to ALL our clients' products and services, along with automated order fulfillment services accessible to anyone with a telephone and a credit card. AGENCY PROMOTIONS Separately, a Public Express national multimedia publicity and infomercial campaign; World Trade Center Association on-line and display advertising campaign; and International Trade Association marketing campaign shall market PARXTC business opportunities, proprietary products and services, import/export assistance programs and franchised or licensed products and services SEMINARS Additionally, free seminars are being developed to educate our targeted markets; to recruit distributors, dealers, members and clients; and to sell selected products and services. Home-based video seminars and party-plan programs, with multilingual titling are designed to penetrate the often overlooked ethnic and niche upscale markets. © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 30. DETAILED USE OF FUNDS STATEMENT
  • 31. ADMINISTRATIVE EXPENSE Management Personnel Management Team Chief Executive Officer Chief Operations Officer Chief Financial Officer Chief Legal Officer Director, Marketing and Sales Director, Multimedia Publications Director, Import/Export Management Services Director, Information/Technology Systems Director, Human Resources Director, New Product Development SUBTOTAL, Personnel $1,440,000.00 Advisory Board of Directors (12) $ 720,000.00 SUBTOTAL $2,160,000.00 Professional and Consulting Services International Law Firm $ 140,000.00 International Accounting/Financial Planning Firm $ 140,000.00 International Management Consulting Firm $ 140,000.00 World Trade Center Association Premier Membership $ 90,000.00 Public Relations and Publicity Consulting Firm $ 30,000.00 SUBTOTAL $ 540,000.00 Management training programs, aids and supplies Software (including multilingual word processing, etc.) $ 140,000.00 Computer Business Services, Inc. Franchises (14) $ 70,000.00 Entrepreneur Business Guides, Videos, Diskettes $ 40,000.00 Sales, Compensation & Order fulfillment software $ 30,000.00 Client Server Hardware, Software, Maintenance $ 28,000.00 SUBTOTAL $ 308,000.00 TOTAL ADMINISTRATIVE EXPENSE $3,008,000.00 OPERATIONAL EXPENSE Office and production facility leasing & rental 12 U.S.A. and 12 foreign branches $1,108,000.00 National and foreign U.S. H.Q. $ 620,000.00 Production Facilities (14 U.S.A. sites) $1,400,000.00 Off-site Resource Bank Centers (3 per city) $ 420,000.00 SUBTOTAL $3,548,000.00 Telecommunications (audio, data, text, video transmissions) $1,336,000.00 Travel, Accommodations & Transportation $ 225,000.00 SUBTOTAL $1,561,000.00 TOTAL OPERATIONAL EXPENSE $4,689,000.00 TOTAL THIS PAGE $8,117,000.00 © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 32. PROMOTIONAL EXPENSE Publishing Design Equipment Photo/Audio/Video/CD-Rom Recording & Editing $ 280,000.00 Silicon Graphics / AMIGA Multimedia system $ 200,000.00 Retrofitted mobile production studios (vans) $ 350,000.00 SUBTOTAL $ 830,000.00 Preproduction Equipment Color laser printers (11" x 17") Full bed color scanners Relevant multilingual software Photocopier (ADF/duplexing, collating, binding) Color laser copier Camera and Darkroom Equipment PACKAGE SUBTOTAL $ 360,000.00 Publication Equipment Web Press, (plus Pre-production & Post-production Equipment) $ 200,000.00 Audio/video cassette duplicators $ 70,000.00 Assorted specialty equipment (heat transfers, imprinting) $ 60,000.00 PACKAGE SUBTOTAL 330,000.00 Output & End user Products 497,674 multilingual catalogs (monthly) $3,600,000.00 41,472 video cassettes (monthly) $1,200,000.00 PACKAGE SUBTOTAL $4,800,000.00 SUBTOTAL PUBLISHING PACKAGES $ 7,054,360.00 Production Personnel Photo, Audio and Video Technicians On-air talent (bilingual) Post production editing team Reproduction, packaging and distribution crew Photojournalists, editors and publication staff SUBTOTAL $2,800,000.00 Advertising, Publicity, Infomercials and Promotions Local, national and international direct mail/marketing $ 180,000.00 International Trade Association Promotions Catalogs and Video Catalogs $ 630,000.00 Seminar, trade show and exhibit facilities (for sales of accounts, catalog and video subscriptions) $ 268,000.00 PACKAGE SUBTOTAL $ 1,078,000.00 GROSS TOTAL THIS PAGE $10,048,500.00 PLUS GROSS TOTAL PREVIOUS PAGE $ 8,117,000.00 TOTAL EXPENSES (BEFORE TAXES) $18,162,800.00 © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 33. DETAILED USE OF FUNDS SUMMARY Administration Management Personnel (Including Board of Directors) $2,160,000.00 (.119) Professional and Management Consulting $ 540,000.00 (.030) Management Training Programs, Aids and Supplies $ 308,000.00 (.017) SUBTOTAL $ 3,008,000.00 (16.7%) Operations Office and production facility leasing and rental $ 3,548,000.00 (.195) Telecommunications/multimedia/on-line expense $1,336,000.00 (.074) Travel, Transportation and Accommodations $ 225,000.00 (.012) SUBTOTAL $ 5,109,000.00 (28.1%) Promotions Publishing Design Equipment $ 830,000.00 (.046) Preproduction Equipment $ 360,000.00 (.020) Publication Equipment $ 330,000.00 (.018) Output & End User Products $4,800,000.00 (.154) Production Personnel $2,800,000.00 (.264) Advertising, Publicity, Infomercials and Promotions $1,078,000.00 (.059) SUBTOTAL $10,048,500.00 (55.3%) TOTAL $18,162,800.00 (100%) Licensing, insurance, maintenance, permits, etc. $ 7,265,120.00 (40%*) SUBTOTAL $25,427,920.00 Contingency fund $ 3,814,188.00 (15%) TOTAL FUNDING REQUIRED $29,242,108.00 * Includes finder fees PROJECTED MILESTONES Day 1 1. Secure working agreement with key vendors/suppliers Day 30 2. Identify colleges and universities in targeted areas to begin focus group studies Day 45 3. Identify and interview prospective professional management consultants/directors/ personnel Day 60 4. Secure venture funding agreements Day 75 5. Secure U.S.A. office, operational and production facilities Day 90 6. Recruit, hire and train production and administrative personnel Day 120 7. Begin producing multilingual administrative, operational and promotional materials Day 150 8. Initiate national and international marketing program Day 180 9. Begin recruiting U.S.A. dealers, distributors and core client base Day 270 10. Secure foreign office, operational and production facilities Day 300 11. Begin recruiting foreign dealers, distributors and core client base Day 360 12. Begin securing international distribution network © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 34. INVESTOR REPAYMENT PROGRAMS National Distributorships $12,000.00 fee x 12 Distributors $ 180,000.00 $6,000.00 x 12 months = $72,000.00 year (x 12) $ 864,000.00 Regional Distributorships $1,000.00 fee x 144 Distributors $ 144,000.00 $500.00 x 12 months = $6,000.00 year (x 144) $ 864,000.00 Area Distributorships $500.00 fee x 1,728 Distributors $ 864,000.00 $250.00 x 12 months = $3,000.00 (x 1,728) $ 5,184,000.00 SUBTOTAL FEES $ 1,188,000.00 SUBTOTAL SALES $ 6,912,000.00 National Corporate Accounts $12,000.00 fee x 144 $ 1,728,000.00 $6,000.00 x 12 months = $72,000.00 (x144) $10,368,000.00 Corporate Accounts $1,000.00 fee x 1,728 $ 1,728,000.00 $500.00 x 12 months = $6,000.00 (x 1,728) $10,368,000.00 Executive Accounts $500.00 fee x 1,728 $ 864,000.00 $250.00 x 12 months = $3,000.00 (x 1,728) $ 5,184,000.00 SUBTOTAL $ 4,320,000.00 SUBTOTAL $25,920,000.00 Business Distributorships $250.00 fee x 20,736 $ 5,184,000.00 $125.00 x 12 months = $1,500.00 (x 20,736) $31,104,000.00 Independent Dealerships $50.00 fee x 248,837 $12,441,850.00 $25.00 x 12 months = $300.00 (x 248,837) $74,601,100.00 SUBTOTAL $18,625,850.00 (64.3%) SUBTOTAL $105,755,100.00 (64.3%) GROSS TOTAL $24,133,850.00 (100%) GROSS TOTAL $138,587,100.00 (100%) SUBTOTAL GROSS PARXTC INCOME $24,133,850.00 $55,434,840.00 (40%) GROSS PARXTC INCOME $79,568,690.00 MINUS FIRST YEAR EXPENSE -$29,242,108.00 NET PARXTC INCOME $50,326,582.00 MINUS INITIAL INVESTMENT GROSS INVESTOR RETURN ON INVESTMENT (36%) $18,117,570.00 DISCOUNTED INVESTOR INCOME (X.52) $ 9,421,136.00 © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 36. Definitions Pilot Module To develop, administer and expand an interactive, multilingual, multicultural voice mail information, discount shopping and income opportunity exchange network, as a pilot facility in the Los Angeles (International Airport) area, to be duplicated in targeted Metropolitan Statistical Areas (MSA's) throughout the United States and abroad, as vehicles for export management services to new, small, home-based, medium and large businesses from a dozen major cultural groups within each MSA. Voice Mail Account The access unit through which multilevel marketing representatives (independent sales agents), distributors, licensees, dealers, members, customers, clients, videomarketing sponsors, catalog advertisers, bulletin board users, e-mail users and discount shopping members establish, maintain, expand and interface with our in-house economic development programs, systems and networks. Multilevel marketing representatives (independent sales agents) Those part-time, full-time, under-, and unemployed, underprivileged, incarcerated, inexperienced and/or unskilled youth, adults and senior citizens wanting to earn additional income, using their existing resources and those availabilities through our network of contacts, by promoting sales of products and services available through small, medium, large, home- based businesses sponsoring discounts to our network members through print, catalog, Internet, e-mail, bulletin board, direct display and/or video marketing channels. Network members Those individuals, businesses, nonprofit organizations, governmental agencies and other public and private entities and/or groups of people registered through a 12-month, 24-month, 36-month or 144-month subscription voice mail account, along with one or more of our communications services. © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i
  • 37. Interactive Activities Calendar, Information Sharing, Discount Shopping and Income Opportunities Network A set of a dozen multimedia publications providing an interactive, multilingual information exchange system wherein those individuals with similar purchasing/consumption interests, needs, and resources may make available and/or acquire access to specific products, services, information and support services to better define and accomplish immediate, short-term and long-term economic and/or cultural goals and objectives, in a cost- effective, time-sensitive manner. Discount Shopping An on-line research, order fulfillment, distribution and delivery system providing Network Members with 24-hour access to local, national and internationally-sourced products, services and activities, available at a (minimum 10%) discount. Income Opportunity The ability of each Network Member to earn additional income by placing orders on behalf of their friends, family, associates and contacts, via catalog distribution, in-home video seminars, direct sales, etc. Network Member Account I.D.# The means through which all Members' primary interests are classified through registration in the applicable Activities Calendar Information, Discount Shopping and Income Opportunity Exchange Network. After initial registration in any one Category, Members may designate their interest in and/or register with any or all of the Categories, in descending order of priority. Network Member Services As the underlying mission of the Network is to engender, establish, administer, sustain and expand progressive individual and collective economic development activities from local to national and international core groups, we've designed each of the three enterprise functional components to perform as an autonomous profit center, providing services to network members first, but also to the public at large, to maximize available capacity. © Copyright 1984 - 1999 - Andrew Williams & Karl McIntosh - All Rights Reserved - No Unauthorized Duplication Permitted Page i