ServiceMagic 2009 Annual Report Download - page 13

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Table of Contents
Revenues
Our revenues are generated from fees paid by members of our network of service professionals for consumer leads (net of amounts paid to
affiliates, where applicable), regardless of whether the service professional that received the lead ultimately provides the requested service, as
well as from one-time fees charged upon enrollment and activation of new service professionals in our network. Lead fees vary based upon the
service requested, with fees for leads generated through our Exact Match service being greater than those for leads generated through our
Market
Match
service.
Competition
We currently compete with other service-related lead generation services, primarily home service-related services, as well as with internet
directories and local advertising, including radio, direct marketing campaigns, yellow pages, newspapers and other offline directories. We also
compete with local and national retailers of home improvement products that offer or promote installation services. We believe that our ability to
compete successfully will depend primarily upon the following factors:
•
the size, quality (as determined, in part, by reference to our pre
-
screening efforts and customer ratings and reviews), diversity and
stability of our network of service professionals and the quality of services provided by these professionals;
• our continued ability to deliver consumer leads that convert into revenues for our network of service professionals in a cost-
effective manner; and
• the functionality of our websites and the attractiveness of their features and our services generally to consumers and service
professionals, as well as our ability to introduce new products and services that resonate with consumers and service
professionals.
Media & Other Businesses
Our Media & Other segment currently consists primarily of Shoebuy, Pronto, Connected Ventures, Evite, Gifts.com, InstantAction.com,
The Daily Beast and Electus. Shoebuy, a leading internet retailer of footwear and related apparel and accessories, generally acts as an agent in
connection with the purchase of merchandise through its various websites, passing purchases made by customers through its various websites on
to the relevant vendors for fulfillment and shipping. Pronto owns and operates Pronto.com, a leading comparison search engine, through which
consumers can search and compare prices for a wide range of merchandise offered by online retailers. In many instances, Pronto.com has entered
into agreements with these merchants to prominently display their products in response to consumer searches. In exchange, these merchants
agree to pay a fee when Pronto.com users click through to merchant websites.
Gifts.com is a leading gift recommendation site, offering consumers gift ideas and interactive, personalized shopping services. Gifts.com
combines editorial sourcing with its proprietary personality-based gift finder to deliver relevant and unbiased gift options to users. Evite is a free
online invitation and social event planning service that also offers party ideas, planning checklists and other tools.
Connected Ventures is a new media network and development company that operates CollegeHumor Media, a leading online entertainment
company targeting a core audience of young males ages eighteen to twenty-four, Notional, a production company specializing in the creation of
video content for all distribution platforms, and BustedTees.com, an online t-shirt retailer targeting the CollegeHumor Media demographic.
Electus is a multimedia company that seeks to enable media content creators to engage with advertising and technology partners at the inception
of the creative process and partner on the finished product across a global and multi-platform distribution model.
InstantAction is a gaming platform that creates and distributes three-dimensional, multi-player console-like games playable online to
registered users for a fee. The Daily Beast is a website dedicated
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