Classmates.com 2007 Annual Report Download - page 10

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Classmates maps.
Paying members have access to our Classmates maps feature which can generate a map, satellite or hybrid
view showing the geographic locations, based on zip codes, of the individuals in a paying member's affiliated communities.
• Classmates dating. Members who elect to participate in our online dating feature can view photos and profiles and create a free
dating profile on the Classmates Web site. However, only paying members can contact other members participating in the dating
feature and conduct searches for singles within their geographic area.
• Newsletter. In addition to receiving our Connections newsletter, paying members also receive our monthly "Gold Standard"
newsletter, which highlights ways for our paying members to get the most out of the subscription features accessible on our
Classmates Web site.
• Reunions. Paying members can track RSVPs to reunions, build surveys, exchange party ideas on private message boards, and
share pictures in photo albums devoted to the reunion event.
We are currently developing a number of new free and pay features on our Classmates Web site that we believe will enhance the member
experience while providing an additional incentive for our free members to upgrade to a pay account. We expect the features available to free
members and paying members to continue to change from time to time.
Pricing for a Classmates pay account varies by term of membership, with most pay accounts consisting of a three-month subscription for
$15.00, or $5.00 per month, a 12-month subscription for $39.00, or $3.25 per month, or a 24-month subscription for $59.00, or $2.46 per month.
International. In addition to our flagship Classmates Web site, we operate four international social networking services. We operate
StayFriends ( www.stayfriends.se ) in Sweden, Trombi ( www.trombi.com ) in France, StayFriends ( www.stayfriends.de ) in Germany, and
StayFriends in Austria ( www.stayfriends.at ). Each service is similar to our Classmates service, although their affiliations are focused only on
schools. Each service is offered in the local country's native language and is designed to appeal to the regional population. We offer free and pay
accounts on all of our international Web sites, although certain features of our international social networking pay services differ from those of
our Classmates pay services and pricing for our international social networking services is lower than for Classmates.
Our strategy for our online social networking services includes the following key elements: enhance the member experience and
engagement on our Web sites; expand our member base through a variety of marketing and registration techniques; increase monetization of our
social networking Web sites by marketing our pay account services to our free members; increase our advertising revenues; and evaluate further
opportunities to expand internationally.
Online Loyalty Marketing
MyPoints connects advertisers with our members by allowing members to earn rewards points for engaging in online activities. MyPoints is
a free service and users need only provide their name, zip code, gender, date of birth, and an email address to register. Members register to
receive direct email marketing and other online loyalty promotions, and earn points for responding to email offers, taking market research
surveys, shopping online, and engaging in other online activities. Rewards points are redeemable primarily in the form of third-party gift cards
from over 60 merchants, including retailers, theaters, restaurants, airlines, and hotels. Participating merchants include, among others,
Amazon.com™, iTunes®, Macy's, The Ritz-Carlton, and Target.
MyPoints provides advertisers with an effective means to reach a large online audience with targeted and untargeted marketing campaigns.
We use a variety of criteria, including personal interests, purchasing behavior and demographic profiles, to create targeted promotions for
advertisers. We tailor these marketing campaigns to meet the needs of the specific advertiser, which may include generating
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