Digital River 2006 Annual Report Download - page 13

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Deployment Speed
Businesses can reduce the time required to develop an e-commerce presence by utilizing our outsourced
business model. Typically, a new client can have an online store live in a matter of days or weeks compared
with months or longer if they decide to build, test and deploy the e-commerce capability in-house. Once they
are operational on our platform, most clients can utilize our remote control toolset to make real-time changes
to their online store, allowing them to address issues and take advantage of opportunities without technical
assistance.
Focus on Core Competency
By utilizing our outsourced e-commerce services, businesses can focus on developing, marketing and
selling their products rather than devoting time and resources to building and maintaining an e-commerce
infrastructure. Management can focus on what they know best while ensuring they have access to the latest
technologies, tools and expertise for running a successful e-commerce operation.
Benefits to Buyers
Our solution emphasizes convenience as it enables products to be purchased online at any time from
anywhere in the world via a connection to the Internet. In the case of software and digital products, buyers
can immediately download their purchase and begin using it in a matter of minutes. Sophisticated search
technology allows shoppers to browse our entire catalog to find the products they are looking for quickly and
easily. Our extended download service, which guarantees replacement of products accidentally destroyed
through computer error or malfunction, and our 24/7 customer service provided on behalf of our clients, offer
shoppers additional assurance that their e-commerce experience will be a positive one. Our CD2Go service
gives buyers the ability to obtain, for a fee, a copy on CD of the product they have purchased and downloaded,
providing additional assurances to buyers.
Strategy
Our objective is to be the global leader in outsourced e-commerce services for software and digital
products developers, high-tech product manufacturers and related online retailers. Our strategy for achieving
this objective includes the following key components:
Attract New Clients and Expand Relationships with Existing Clients. We have focused our efforts
on securing new clients and expanding our relationships with existing clients primarily in the software,
digital products, high-tech products, and consumer electronics markets. Our clients include software
publishers, other digital content providers, high-tech product manufacturers, and online channel partners
such as retailers. In 2006, we entered into more than 230 new contracts with new and existing clients.
We believe we can attract new clients and gain additional business with existing clients by expanding
the range of services we offer. This includes services to enhance the e-commerce transaction as well as
additional online marketing services. We believe that by expanding the size and breadth of the catalog of
products we offer, we will attract additional online retailers and affiliates seeking to offer their customers
a wide range of quality products. As of February 1, 2007, we were providing e-commerce services for
more than 44,000 software and digital products publishers, high-tech products manufacturers, online
retailers and affiliates.
We believe we have amassed the largest catalog of digital software titles available anywhere online,
and we offer these titles to online retailers and affiliates. We generate revenue when web traffic is
directed to a site for which we provide e-commerce services and a purchase transaction occurs. We will
continue to expand the content available in our catalog, which we believe will make that catalog
increasingly attractive to online retailers, affiliates and other online channel partners. We believe the
Digital River oneNetwork is a unique marketplace and provides opportunities to grow our revenues and
strengthen our relationships with clients and partners.
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