ServiceMagic 2010 Annual Report Download - page 12

Table of Contents
e-mail campaigns and search engine marketing. In addition, we enter into a variety of alliances with third parties who advertise and promote our
services. Some alliances are exclusive and some, but not all, contain renewal provisions.
Revenues
Our revenues are derived from subscription fees for our subscription-based online personals and related services and online advertising.
Competition
The personals business is very competitive and highly fragmented in the United States and abroad and barriers to entry are minimal. We
compete primarily with online and offline broad-based personals, dating and matchmaking services (both free and paid), social networking
websites, the personals sections of newspapers and magazines, other conventional media companies that provide personals services and
traditional venues where singles meet (both online and offline). We also compete with numerous online and offline personals, dating and
matchmaking services that cater to specific demographic groups.
We believe that our ability to compete successfully will depend primarily upon the following factors:
•
the size and diversity of our registered member and subscriber bases relative to those of our competitors;
• the functionality of our websites and the attractiveness of their features and our services generally to consumers relative to those
of our competitors;
•
how quickly we can enhance our existing technology and services and/or develop new features and services in response to:
• new, emerging and rapidly changing technologies;
• the introduction of product and service offerings by our competitors;
•
evolving industry standards; and
•
changes in consumer requirements and trends in the single community relative to our competitors; and
• our ability to engage in cost-effective marketing efforts, including by way of maintaining relationships with third parties with
which we have entered into alliances, and the recognition and strength of our various brands relative to those of our competitors.
ServiceMagic
Overview
ServiceMagic is a leading online marketplace in the United States that connects consumers, by way of patented proprietary technologies,
with home and other local service professionals, all of which are pre-screened and the majority of which are customer-rated. When consumers
submit a service request through the ServiceMagic marketplace, ServiceMagic generally matches them with up to four members from its
network of service professionals, which as of December 31, 2010, consisted of more than 82,000 service professionals in the United States
providing services in more than 700 categories, primarily home service-related, ranging from simple home repairs to complete home building
and home remodeling projects, as well as other local services, including photography and event planning.
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