Leveraging Card Linked Offers

What we do

• Sell Performance Advertising to SMBs– Merchants Pay us a dime for every dollar we deliver…

1. Merchant provides us a discount, 2. We provide all advertising free of charge3. They pay us 10% of the Credit Card Transactions that result from our efforts

– We can track every credit card transaction in real time– We pay 45% of our revenue to partners that provide the product,

the technology, and the advertising that produce the consumer transactions

• No Product Risk• No Technology Risk

We focus 100% on Getting, Keeping & Collecting Fees from Our Merchants.

People Like Coupons,Merchants Use Discounts

• Coupons work, Consumers are looking for discounts!– $470B In Coupons Distributed in US (2014), 66% of US Households, redeemed – Digital Coupons growing- slightly less friction: 16B in Digital Coupons Redeemed

(worldwide), 55% of Adult Internet users use digital coupons or 112.5M in US and 74.1M Used Smartphones to access digital coupons (growing to 126.9M in 2016

– No Personalized Attribution, no past purchase behavior, Life Time Value, etc• Daily “Deals”

– Pre Sell Vouchers (Coupons): Issues with Breakage and returns, Overall costlyto Merchants– $5.5B= 2016 Revenues for Deal Sites- 35M visitors visit every week looking for deals

Leading coupon websites in the United States in September 2014, based on visitor numbers (in millions)

Groupon.com

RetailMeNot

Zulily

Coupons

ShopAtHome

SlickDeals

LivingSocial

Woot

eBates

FatWallet

0

5

10

15

20

25

30

3530

24

2018.25 18 17

1210

7.56

Uni

que

visi

tors

in m

illion

s

*Groupon- Fastest company ever to reach 1B in revenue, famously used high volume tele-sales to

get SMBs!

*

THE INVISIBLE COUPON (Card Linked Offers)

The Offer The Card The PurchaseMerchant Creates Offer: 20% cash Back, or Spend $50 and get $10 cash back

The Consumer simply links any debit or credit card, one time, on any of the Mogl Network websites or apps.

The consumer visits the merchant, and makes a purchase using their linked card, it’s just that easy.

.

Better, Faster, and Cheaper than Groupon, or paying for & managing ads to get you coupons seen!

WITH CARD LINKED OFFERS...

Consumers

• The easiest way to get discounts, real savings in the form of Cash Back on their credit card!

• More Transactions, more revenue. Less Risk, only pay when revenue is realized! No need to evaluate, pay for, or manage advertising!

Merchants

EVERYBODY WINS

• T

• Actual Attribution of Online Advertising to Off Line transactions. Closes the loop between someone seeing Advertisement Online and the resulting Off Line Transaction

Phase 2Brands/ Agencies

Card Linked OffersCard Linked Offers Market is growing rapidly• Significant barriers to entry… Tricky Technology,

Biz Dev, Tim, and $$$$$$$Mogl is a leading CLO company• Invested $30M, proven model & CLO Tech Stack • Mogl transaction every 40 Seconds• $60M in revenue delivered to merchants • 30M linked card holders already

• Needs Local Merchant OffersMOGL Investors include:• Aequitas, Austin Ventures, Avalon Ventures,

Sigma Ventures, Correlation Ventures, Sysco, and Richard Branson.

7

100,000+ Merchants

100,000,000+ Consumers

MOGL’S AFFILIATE NETWORK

Online Companie

s

CLO Companie

s

Invisible Coupons

Media & Directories

Banks & Airlines

Coupons & Deal Sites

MOGL Members

Social Networks

Contribute ‘offers’ to the network

Contribute consumers to the

network

Copyright © 2006-2015 Mogl | All Rights Reserved

(50% of Fee) (30% of Fee)

Mogl keeps 20% of Fees

The First “Affiliate Network” Powering Online Ads to Offline commerce

Leapfrog Barriers of Entry into CLO5 year Licensing & Customer Support Agreement

TECHNOLOGY: to offer, track, report and analyze Card Linked Offers via an API TARGETING: geographic and demographic data on the 30M credit card holders (Day

1) DISTRIBUTION: of Merchant offers (Marketing partners are paid 30% of Merchant

fees!) Payment Terms: We pay Mogl 45% of the Merchant fees we collect from OUR

MERCHANTS

We Get Customers, Keep Customers, and Collect fees

How we get Merchant Offers(Sellers on the phone)

Simplified Sale of Performance Advertising“Dollars for Dimes”

• Tight Initial Target Market Focus: existing card holders

– One City at a time, blanket coverage• 1st City Houston with 600,000 linked card holders

• High Volume Tele-Sales, – Easy to Scale and cost of acquisition will decline with experience

• Starting with highest quality USA based call center• Will leverage multiple Vendors in meritocracy

Founders built profitable 40M Digital Advertising Company via 1,120 tele-sales agents

Why it works1. Mogl works- and it has proven Card Linked offers 2. Number of sales people x Sales per hour= Number of merchants Offers per hour

– More Sellers = More Merchants3. Every Merchant is an Annuity stream

– Mogl has 3%-4% Attrition Monthly (Sticky) • About half of this attrition is because Merchants go out of business!

– Mogl’s Transaction per Merchant is >$1250 per month.• Revenue per Merchant Offer is $125 (10% of the transactions)** Mogl has recently started a flat fee pricing agreement at $199 a month

4. It’s a land grab. – We are first reseller in network and have a way to scale sales (Merchants) faster than anyone

else

Myopic Focus on Getting more Merchant Offers1. Prove Cost of Acquisition (Merchants)/ i.e. Get script right, 2. Learn Revenue Per Offer for Empyr (Mogl Network) in Houston 3. Add Sellers using short term project financing (crowd sourced, non dilutive growth capital)

How We Scale We can always add as many sellers as we can afford with

reinvested Profits, but that limits the number of sellers we can add

We will add more sellers every month, with non-dilutive outside capital

1. Prove Cost of Acquisition (Merchants)/ i.e. Get script right, (COA of a Merchant Offer) and Revenue Per (Merchant) Offer for Empyr (Mogl Network) • Remember Model is X Number of Sellers = Y Number of Merchant Offers

(Revenue)2. Allow Investors to invest with a guaranteed return in 45 days, based on a

moving 90 day average of Revenue per Merchant Offer. (Profits – crowd sourcing non dilutive growth capital

• Gamify with upside potential. i.e. bigger than promised returns • Seller can reinvest portion of their pay-checks• Call Centers can reinvest portion of their fees

– Call centers always will cut fees for performance bonuses, because they know what to expect. We keep them competitive with Quality of the lead flow.

Team

Dan, David and Danny worked together at eBridge (Inc. 500). Grew to $40M profitably, employed 1120 tele sellers in 9 overseas call centers, selling SMBs $100 a month digital advertising package. • Dan’s background: Build internet Military Staffing Marketplace, exited in 99. Principal of significant Global Digital Branding Practice

for Ernst & Young. Involved with several start-ups (Dayak, Mojopages (spun off Mogl), Hookit, tweetphoto (became Lockerz), Defense Mobile, Petwireless). Founded two not for profits focused on the Military Community. Dan is a Professional Revenue Coach with Jack Daly/ Leverage.

• David’s Background: Ran operations at eBridge from six house sellers to over 75 in house, and 1120 overseas in professionally managed call centers. David has had a long and prosperous career in the fashion and textile industry with global responsibilities. He was a McKinsey Consultant based in S. Africa and was GP at a Venture fund based out of the UK.

• Ran National Operations and Logistics for Vitamin Infused Water. Danny’s Background: Danny’s company eVisibility was purchased by eBridge. After growing eVisibility with notable National Accounts, Danny spun off eVisibility as a separate agency (Inc 500) after successfully hitting his earn out he founded Incubate.com (Incubator) and Elevated (Inc 500 Digital Agency)

• Tom’s Background: Tom has been the director of technology at several companies. He technical skills are well known throughout San Diego as both programmer and Strategic leader. He founded Techovia, and prior to that he was the director of Technology at Life Gear. His background is ideally suited for integrating Mogl’s technology stack with Invisible Coupons’ Merchant facing technology.

Dan Caulfield, CEOBusiness Development

https://www.linkedin/in/dancaulfield

David Harris, COOCall Center Operations

https://www.linkedin.com/pub/david-harris/5/581/

547

Danny DeMichele, CMOMarketing Mix

https://www.linkedin.com/in/dannydemichele

Tom Brown, CTOMogl Tech Integration

https://www.linkedin/in/twbrown

Financial Model Assumptions

KEY DRIVERS OF FINANCIAL MODEL:• SPH: (Merchant Sales Per Hour ) < 2 Sales per hour• COA: (Average Cost of Merchant Acquisition) < $20• RPO: (Average Revenue per Merchant Offer) = $46.22• Churn= 10% of New customers and 10% of Continuing customers leave each

month (mogl only loses between 3% &4% total each month)Note: No Up-Sell Revenue is modeled. We get merchants offers for about $20 and make about $45 a month

All our Assumptions are based on the past performance of Mogl. We have modeled revenue at % of Mogl’s historical transaction average.

Organic Growth Projections(Without Short term Investments funding more sellers)

Organic Growth Projections Continued

Investment OpportunityWe are raising just enough to reach cash flow

positive, and prove the Sales Per Hour and Revenue per offer.

• 1M Pre Money- • 25K minimum investment, 250K-500K total round

– 1.25X Liquidation Preference– Board Observer or Board Seat available for the right fit

Additional Slides for Questions

TRACK AND MONETIZEONLINE TO OFFLINE COMMERCE

How Card Linked Offers Work

• Helpful Video form a Company in the Market:https://www.youtube.com/watch?v=ur_rJsYZF8U

Attribution, Advertising’s Holy Grail

If we spend money on advertising, how much money will we actually make?

21

93% of Commerce is off line

Attribution of Advertising and Marketing efforts difficultOnline and Mobile Ad attribution near impossible

“Half the money I spend on advertising is

wasted; the trouble is, I don't know which

half.” -John Wannamaker

“How much Revenue is produced on every $1 we

spend on Marketing and Advertising?”

- Every CEO/ CMO on Planet

22Attribution of “Clicks to Cash”

Leverage CLO technology to deliver actual attribution by tracking the amount of money spent Offline from an

online or mobile ad for ad Agencies & Brands