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a social promotions and rewards platform to
help SMBs and brands create fun, social,
and rewarding sweepstakes campaigns.
January 25, 2012
Visit our website at socialprize.com
Copyright lingo can go here
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Businesses
invest a lot of time and money into branding,
technology, marketing and sales, but the phones still don’t seem to ring.
Brands
have migrated online without truly knowing why. They know
they need to be in the Social Media Arena, but once there, they ask, “Now
what?”
Too many
companies achieve too little gain, for too much pain.
Social Prize - Company Overview 2012
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Why don’t SMBs run more sweepstakes?
Running successful promotional campaigns to drive consumer engagement and
new business can be time consuming, expensive and overwhelming due to…
1. Overhead costs –
You know the old saying “I know
that 50% of my advertising works, I just don’t know which 50%”
2. Legal Constraints –
“There’s no way I can
keep track of the arcane laws in all 50 states”
3. Technical Limitations –
come again? My customer Tweets what exactly”
Social Prize - Company Overview 2012
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“Like button,
Why don’t small businesses do more giveaways
and sweepstakes like big brands?
Too expensive
Not enough time and knowhow. Database
entries and contestants very difficult to manage. Am I making it easy for people
to enter? Legal complexities. Design and Technical integration overwhelming.
Can we handle the massive traffic? Am I picking the winner the right way?
Once a sweepstakes is launched–
the pain points
•
•
•
•
How do I drive qualified leads to my promotion?
How do I make campaign viral?
How do i convert leads into customers?
Minimize exposure to unqualified contestants who only want to win the prize
. Social Prize - Company Overview 2012
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% of Businesses Using
Promotional Tools
60% of all early stage online
and mobile companies turn to
promotional tools such as
sweepstakes and contests for
their early launch. That has been
especially true over the past 3
years. Give away cool prizes or
make the "play" component fun
and people flock to it. It's hard to
match that with more traditional
advertising.
Don’t Use
Promotional
Tools
40%
80MM
internet users enter
sweepstakes on a monthly basis
Social Prize - Company Overview 2012
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Use
Promotional
Tools
60%
0.7B 20092009
Social Integrated Promotions (in
billions)
2014
3.4B 2014
0
1
2
3
4
Brands are using social game mechanics to engage fans
Richard Mumby, vice president of marketing, added, “The key to making gaming
work within our ecommerce experience is focusing on making it social, not
making it commercial (in terms of focusing solely focusing on sales). Your fans
and follows are looking to interact with you, not to passively take in your content,”
he advises. “Provide engaging posts and tweets that solicit a response. Allowing
them to take action and become involved in something is the key to a very loyal
and evangelical customer base.”
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Captive Audience
Facebook
1 in 7
3 of 4
online minutes
social minutes
Growth trend is clearly moving toward social networks
35%
more time spent on all social networks than the previous years
Capitalize on Social and Mobile
40%
of social traffic consumed via mobile devises
Source: comscore - via mashable article http://mashable.com/2011/12/27/facebook-minutes/
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Running a sweepstakes has many hurdles. Cost. Legal. Design. Technology. Promotion.
Social Prize delivers a DIY, turn-key platform for SMBs, Brands and Agencies to
quickly and effectively launch social sweepstakes
We address the major pieces of a sweepstakes
1.
Choosing a prize—we make the decision process simple by providing a user hot
products within a variety of categories.
2.
Deciding on the Length of sweepstakes—we offer set durations to a sweepstakes
depending on the prize value that ensure optimal exposure and entries.
3.
What Methods of Entry—Increase facebook likes and twitter followers, grow email list.
4.
Creative/Design—We remove all design requirements by provider well thought out
banners and images of the prize and call to action copy.
5.
Legal The Official rules—tailored to accommodate any business for US and Canada
and comply with Facebook, Twitter and Foursquare guidelines.
6.
Administration—Verification, Notification and announcement of winners, Winners
Affidavits and timely shipment of the prize all handled by social prize.
7.
Reporting—campaign statistics, contestant data and analytics in an easy to read format
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Social Prize is a Market Innovative platform. Sweepstakes
generally have not changed in 50 years. They moved from off-line
to online- in the late 90s, but have not progressed much since. With
Social Networks powering our online activity today, Social Prize
believes that combing "Social" and "Sweepstakes" will result in a
huge market shift of both Businesses and Brands who promote
sweepstakes and Consumers who enter with Sweepstakes.
The shift from online to mobile is where we wish to position the
company as the market leader
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We have two customers
1. Member / User an individual who uses the Social Prize
platform to enter sweepstakes, invite friends and engage with other members and
brands.
2. Payer
SMBs, Brands and Agencies which use the Social Prize
platform to create and promote social sweepstakes and engage with members
during the lifetime of the sweepstakes.
Member / User
Social Prize - Company Overview 2012
Payer
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Competition
Complimentors
• Wildfire (200,000 campaigns
launched
• Buzzreferrals
• 500friends
• Buddy Media
• Kiip.me
• BigPrize (2.8MM active
subscribers)
• Games That Give.net
• GamesandPrizes.com
• Prizes.org
• ePrize (administers, designs,
launches big brand
sweepstakes)
• Rafflecopter
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Sales Channel (Payers)
1. Social and Online Marketers (SMBs)
2. Brand Relationships
3. Agencies
Sales Channel (Member/User)
1. Byproduct of Sponsors promoting their sweepstakes on socialprize.com
2. Online Display ad buys
3. Affiliate marketing acquisition (online and mobile)
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How do we create user demand?
Inbound Marketing
•
•
Blog: build a story of the social prize value proposition, telling stories of what
we do and why we do it and success stories. Talk about Epic wins (in general)
and let people showcase their lives.
Website: relevant content such as Best practices, How to run sweepstakes
Direct Marketing
•
•
•
Google PPC
Linked In
Facebok
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1. Inherent Virality
early adopters (hard core sweepers) will need to
invite as many people as possible, knowing their odds of winning is dependent on influencing their
friends behavior on Social Prize. Both their invitees and followers become huge assets on our
platform.
2. Collaboration Virality
Social Prize has structured a team play
mechanism, thtat incentives the users to collaborate and work together to better their chances of
winning
3. Communication Virality
Social Prize is about sharing. All
methods of entry require a member to share on fb, tweet or checkin on foursquare.
4. Incentivize Virality
Social Prize requires users to share in order
to get entries, but also incentives influence. By getting friends to join a sweepstakes, members gain
bonus entry points to better their chance of winning.
5. Embedded Virality
As mentioned, members must share to enter to
win. Within all wall posts, direct messages, emails and tweets social prize embeds links back to our
sign up page.
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Deals and Partnerships
Social Prize platform enables us to work across all verticals.
Developers can use our API to build sweepstakes within their apps, while passing
legal, regulatory, fulfillment off to Social Prize.
Robust APIs for App Developers
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Legal issues are the top concern of Social Prize, making sure we fall within all 50
States and Canadian guidelines of sweepstakes promotions.
We have partnered with Growling Lafleur Henderson LLP, who have extensive
traditional sweepstakes experience, as well as with Facebook, Twitter and other
social media.
Gowling Lafleur
Henderson LLP
Lawyers • Patent and Trade-mark Agents
1 First Canadian Place
100 King Street West, Suite 1600
Toronto, Ontario
M5X 1G5 Canada
T 416-862-7525 F 416-862-7661
Gowlings.com
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Social Sweepstakes Platform
Pricing Model
1. Group Sweepstakes = $75 + 30% of the prize value over $250
2. Custom/Branded Sweepstakes = $75 plus $1.99 per day
Future Engagement add-ons, such as allowing brands to
offer additional entries during the sweepstakes on a per entry basis.
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Beta Launch: August 2011
130 clients signed up
30% converted to paying customers
Over 6,000 members/contestants generated
Full Product launch February 2012
Buildout Sponsor/Business dashboard
Buildout Member interface
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We are ready for a full scale launch February
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2012
Raising $500,000
Convertible debt
2MM valuation
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Publishers Clearing House Archaic methods of
running sweepstakes but huge brand awareness, will wish to acquire a company
that has the expertise in social sweepstakes and game mechanics with a large
user base.
ePrize Large brand sweepstakes administer.
To expand their product
offering to established brand relationships, they will see Social Prize as a prime
target to acquire it's user base and technology platform.
Keys
CEO of Social Prize will have ties to one or more of these companies.
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