WRAPmail (OTC: WRAP) Chairman Update to shareholders
February 19, 2013 9:00 AM ET
Business:
Any business with a website and employees that send emails can benefit from WRAPmail. This makes us geographically independent and industry independent. Today we have over 6,600 clients from all over the world in almost every industry one can imagine. My statement to everyone I talk to is always the same: “You and the rest of the employees are sending the email anyway so why would you not advertise your business at the same time?”
Business clients can remain free (WRAPmail PRO) but if so they now get a minimum of seven 3rd party ads placed below their WRAP (interactive email stationery). Clients can upgrade to WRAPmail PRO+ and pay a license fee of$50/user/year and thus avoid the ads. There are over 1 billion business email accounts in the world today.
Personal:
There are over 1 billion people with a Facebook page, about 300 million people with a LinkedIn page and millions of people on Google+ and other social networks.
We created a new system where users can sign up with their Facebook account, LinkedIn account or Google+ account and have a WRAP automatically be created based on their social network profile. All of these accounts are free and each WRAP comes with a minimum of seven 3rd party ads (but also these users have the option to pay a license fee of $50/year and the ads go away). Users simply sign up by clicking on the social network they want on the top of our home page (www.wrapmail.com) and within seconds they receive an email in the WRAP that was automatically created with their profile image, other images, text and built-in links.
As we looked for other large potential markets we found an opportunity for affinity WRAPS where users can select their favorite Sports Team, artist or celebrity and purchase a WRAP to use with their regular personal emails (about$15 each). Not only does this give the person signing up a great personalized WRAP featuring their favorite Team, Celebrity or Artist but they also become part of the affinity marketing team by virtue of simply sending emails like they always do. Many Teams and Celebrities have millions of Fans so if only a fraction of these purchase a licensed WRAP the revenues generated can potentially be massive on an annual basis. WRAPmail recently announced a partnership with Esther Branded Entertainment Group (EBEG) for marketing the Fan WRAP solution and simultaneously announced the signing of Rock and Roll Hall of Fame member Lou Reed with over 600,000 fans on Facebook alone.
3rd party Advertising Network:
Ads currently come from Google Affiliate Network but our goal is that all these ads will come from our own ad network as soon as we reach critical mass that will attract advertisers. Our own ad network is built out and ready so anyone with a WRAPmail account can create an ad and then select what emails they want the ad placed. Ads from our own ad network are priced at $0.005 per impression plus $0.25 per click. Each email sent by a free user could generate a minimum of $0.035 when we have our own advertising network being used. Ads in personal emails are extremely attractive as people who get emails from people they know typically always read them and thus cannot avoid seeing the ads. In the future we can also pinpoint these ads to interests of both sender and recipient. WRAPmail’s advertising module is already built into every user’s Dashboard.
Our first goal is 10,000 free users that each send 10 emails per day. If this attracts advertisers in our own advertising network we could achieve daily revenues of 10,000 x 10 x 0.035 = $3,500. The next goal would be 100,000 users which could generate daily revenue of $35,000 or about $12.7M/year. 100,000 users represent less than 0.01% of all Business users, less than 0.01% of Facebook users or about 0.03% of all LinkedIn users.
Potential game changers:
We have created many opportunities and any one being successful could be a major game changer:
- Signing of a major company (defined as a company with 10,000+ employees) to use WRAPmail for all employees;
- Signing of a major independent agent network such as a Multi-Level Marketing Company, Real Estate or Insurance Agent Network;
- Domino effect from Facebook, LinkedIn or Google+ automated WRAPS where new users beget new users and volume drives advertising revenue, or
- Signing of a major Sports Team, Celebrity or Artist (over 5 million Fans) which could create a ripple effect to other Teams and Celebrities when realizing the revenue opportunity from Fans marketing tickets and merchandise.
Assuming we successfully obtain funding for marketing in particular I feel the future is very bright with tremendous opportunities.
Rolv E. Heggenhougen
Founder & Chairman
Forward looking statements and risks and uncertainties
Matters discussed in this press release contain forward-looking statements. The words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect,” and similar expressions identify such forward-looking statements. Expected, actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. Forward-looking statements are subject to a number of risks and uncertainties, including but not limited to, risks and uncertainties associated with, among other things, the impact of economic, competitive, and other factors affecting our operations, markets, products, and performance. The matters discussed herein should not be construed in any way, shape or manner as an indication of WRAPmail’s future financial condition or stock price. For more complete information regarding our business and financial condition, you may access our filings at otcmarkets.com.
WRAPmail Investor Relations:
IR@WRAPmail.com
Phone: (415) 938-7978
Home page: http://www.wrapmail.com
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