1: Thank you very much. Good morning! We are Alo Networks- The Mobile Hispanic Network. We are a unique multimedia advertising channel that uses a mobile social network to reach the US Hispanic market <CLICK>
2: We all know that the Hispanic market is large. Most people really don’t realize how large it is. It will be 100M in 2020! And yet marketers have done VERY poorly in reaching it. Before we did the Obama campaign we had 4 years of telemarketing to the US Hispanic market. Most of you probably hung up on telemarketing most of your lives. 98 to 99% of English-speaking people do. You couldn’t possibly imagine that the exact same message that got 1 or 2% gets 15 to 20% in Spanish! Same income, same education… Our Latino culture is dramatically different. Statistically, we don’t buy much from newspaper ads- we do buy from AUDIO ads- telephone calls, radio or TV. In general, for the Hispanic community the mobile phone is NOW the connection to family and friends, PLUS newspaper and email all rolled into one. <CLICK>
8: The management team is experienced, and proven. ALL FOUR have successful startup experience. I was born and raised in Argentina; Al Gamez is Mexican-born; we have a deep understanding of Hispanic marketing. I was a founder of ContentGuard, a Xerox-Microsoft joint venture that successfully sold to a group including Time Warner and Thompson. Don’s Net Perceptions introduced Jeff Bezos to targeted marketing technology. He used it to build his new website called “Amazon” into a marketing powerhouse! Kamran ran operations for DirecTV… talk about a large membership group! <CLICK>
6: In order to do that, the company needed to build several unique competencies. If you only have one or two you could NOT compete with Alo- the COMBINATION of the services is essential to make the model work. So we have a first-mover advantage that allows us to grab the market, and a combination of benefits and community that ensures that it stays loyal. We have years of experience marketing to Hispanics and building one of the largest databases; Plus a robust , cutting-edge digital-marketing platform- the very same one used by the Obama campaign. Alo also has the infrastructure to manage and support sales and customer service . <CLICK>
5: The value proposition for both parties is extremely compelling and leads to tremendous customer loyalty. The Hispanic consumer saves up to $65 per phone per month. They get access to financial services and health benefits through our membership. They get discounts and coupons for things that they like, in an interactive manner, directly on their phone- and they can share them via our mobile social network. For marketers, this channel is exactly what they need in this economy. It offers access to a growing market. It creates a connection for their brands with a community that they have struggled to reach. It offers a REAL-TIME interaction with a customer for an average of $1 each , versus $4-$5 on the web and $20 with direct mail! Alo gives National and Regional brands very compelling targeted interactions. But perhaps more exciting is the new opportunity it provides local business. Their ability to use marketing techniques that were only available to large companies will significantly improve their sales. <CLICK>
4: So let me show you how we do it. We created a mobile membership organization- an “AARP for Hispanics” if you will… We give members a free phone with a free basic mobile plan and great international rates. We still get significant revenue beyond the free service, because Hispanics use almost TRIPLE the minutes of other groups - and hundreds of minutes of international. The community is frustrated with the multi-billion dollar calling card industry with hidden fees and misleading charges. Alo offers simple affordable plans that consumers love. They pay discounted rates for extra minutes and get lots of other benefits. In return they give us the EXCLUSIVE right to deliver targeted advertising to their phones. These targeted messages can be public service, like a campaign we are working on for the State of Maryland to deliver flu and other health info. It can be a sales opportunity, like a campaign for Cablevision to sign up new customers in the New York City area. It can build brand awareness and loyalty like putting the Chicago White Sox logo or the Moneygram logo in bold color on the back of the phone handset. For customers who don’t have a Spanish call center, we have hundreds of agents available for sales, market research and customer service- it’s a very valuable service for them and very profitable for us. <CLICK>
7: Alo is a very large , transaction-based, highly-scalable business poised to generate very attractive margins. Since all of the systems, personnel and processes are in place, we are in a position to execute. Our conservative plan, with a very reasonable investment, will lead to profitability quickly. <CLICK> EyeIC LLC Confidential. Please do not distribute.
11: In summary- our mobile Hispanic network is a unique interactive, multimedia channel pioneering the merging of social networking, mobile communications, and digital marketing. It offers marketers unparalleled access to this market at a fraction of what they’re paying. Members get tremendous benefits and respond to offers they like. We have all the core systems, processes and management in place to execute- and the size of the opportunity ensures that if we do our job right, there will be a tremendous pot of gold at the end of our rainbow. Thank you very much.
<ul><ul><li>“ The Mobile Hispanic Network TM ” </li></ul></ul><ul><ul><li>Alo has created the first interactive </li></ul></ul><ul><ul><li>advertisement channel to Hispanics </li></ul></ul><ul><ul><li>via a mobile social network </li></ul></ul><ul><ul><li>http://www.alonetworks.com </li></ul></ul>
Growing Untapped Market <ul><li>US Hispanic Community: almost 50M and growing </li></ul><ul><li>$1 TRILLION spending (93% of disposable income) </li></ul><ul><li>Hispanic population >80% mobile; #1 communication tool </li></ul><ul><li>Hispanic response to phone marketing is 8-10 times higher </li></ul><ul><li>Growing share of $200B+ US advertising Market </li></ul><ul><li>The mobile media channel is their Facebook+NBC+NYTimes+Twitter… all in one </li></ul>
Proven Management Team Hugh Buitano – Founder, Chairman, CEO Technology and Business expert 20+ Years HP, Kodak, Xerox - Engineering, Marketing Services; ContentGuard, InfoSecure – Founder, CTO, President Don Samoil – Director and Founder Sales and Marketing veteran 20+ Years Net Perceptions; Developed Amazon’s Personalization Engine Graphnet, InfoSecure Sales, Marketing Senior VP Charles L. Smith, Jr. - VP, Strategic Sales and Business Dev. Sales and Marketing veteran 34+ years at Procter & Gamble; National Sales Manager, John Morrell Meat; The Growth Alliance Tom Schram – Chief Operating Officer Advertising, Business, and Marketing veteran 20+ Years Procter and Gamble; The Optimum Group, EVP; The Growth Alliance, Managing Director; Wiresoft, President and CEO Joseph Dempsey – CFO 20+ years of investment banking experience, corporate financing and mergers and acquisitions. Most recently, Head of Investment Banking at Felix Investments; Senior positions at Advanced Equities, Wachovia Securities, Bear Stearns, and Goldman Sachs.
High Barriers to Entry <ul><li>First-mover advantage + Alo Mobile social network ensures loyalty </li></ul><ul><li>Advanced digital marketing platform – over 60M calls for Obama campaign </li></ul><ul><li>Large database of Hispanic consumers with existing relationship </li></ul><ul><li>Relationships with Telco’s – including very favorable SPRINT mobile pricing </li></ul><ul><li>Relationship with top Hispanic Agencies of record (Omnicom, GlobalWorks, Lopez Negrete) </li></ul><ul><li>Proven VOIP real-time telephony network, accounting and CRM infrastructure (systems and people) </li></ul>
Value Proposition: Win-Win Audience Primary Value Proposition ALO Members <ul><li>Receives Free Phone & Free minutes </li></ul><ul><li>Cheaper International Calls </li></ul><ul><li>Mobile Social Networking </li></ul><ul><li>Free Membership Benefits </li></ul>ALO Advertisers <ul><li>1/3 to 1/20 Cost of Other Media </li></ul><ul><li>Reach Untapped Market </li></ul><ul><li>Targeted and Interactive Marketing </li></ul><ul><li>High ROI for Marketing Dollars </li></ul>
Multiple Revenue Streams <ul><li>US </li></ul><ul><li>$ for top-up minutes </li></ul>Telephony $ <ul><li>Alo Membership </li></ul><ul><li>Free Mobile phone & minutes </li></ul><ul><li>$ for 1-time Membership fee </li></ul><ul><li>Many Free Membership benefits </li></ul><ul><li>Consents to Advertisement </li></ul><ul><li>Latin America </li></ul><ul><li>$ for top-up minutes </li></ul>Telephony $ $$$ $ Services <ul><li>Call Centers </li></ul><ul><li>$ for services </li></ul><ul><li>Advertisers </li></ul><ul><li>$$ to sell and advertise products </li></ul><ul><li>$$ for PushOne TM Services </li></ul>Advertising via voice Text, video and messaging
Projections <ul><ul><li>Currently have 10,000 phones sold and activated into memberships </li></ul></ul><ul><ul><li>Now shipping 1,000 phones a week and ramping to 2,000 a week with NDR Media </li></ul></ul><ul><ul><li>Goal is 30,000 sold and activated by 5/1/2011 </li></ul></ul><ul><ul><ul><li>(Agreement about to be signed and P.O.’s issued) </li></ul></ul></ul><ul><ul><li>Phone sales and activations are CFBE </li></ul></ul><ul><ul><li>Advertising starts NLT April 2011 </li></ul></ul><ul><ul><li>Breakeven EBITDA in 2011 </li></ul></ul><ul><ul><li>Membership count goal is 85,000 by 1/1/2012 </li></ul></ul>
Summary <ul><li>Unique advertising channel to Hispanics </li></ul><ul><li>The most efficient, exclusive multimedia channel to advertisers </li></ul><ul><li>Large and growing market </li></ul><ul><li>High barriers to entry </li></ul><ul><li>Proven management team </li></ul>Alo Networks: “The Mobile Hispanic Network Powering Interactive Advertising for the 21 st Century”