ServiceMagic 2010 Annual Report Download - page 13

Table of Contents
Through ServiceMagic International, we search for local lead generation business opportunities around the world and made a majority
investment in ServiceMagic Europe, which operates businesses in the local lead generation space in France and the United Kingdom, including
Travaux.com , a leading French website for consumer information regarding home improvement; 123Devis.com , a French lead generation
business with one of the largest networks of tradespeople in France; and 123GetAQuote.co.uk , a leading lead generation platform for home
service and trade professionals in the United Kingdom.
Services
Through our Market Match service, we generally match consumers with up to four service professionals from our network based upon
service requests that specify the type of services desired and the consumer's zip code. Through our Exact Match service, consumers can review
service professional profiles and select the service professional that they believe best meets their specific needs. Through Exact Match , we also
optimize the placement of service professional profiles in a wide range of marketing vehicles, including the results of local and other search
engines and online directories. Our Exact Match service provides a way for service professionals to get broad exposure for their businesses
online without having to pay significant up-
front fees, build and maintain their own destination websites and develop online marketing expertise.
Consumers can also be matched to a service professional by way of 1800Contractor.com , an online directory of our network of service
professionals that we own and operate. Consumers that visit this site are ultimately matched to a service professional by way of our Exact Match
service or, if a match cannot be made through this service, by way of our Market Match service. We also offer website design and hosting
services for our service professionals through our wholly-owned subsidiary, Market Hardware.
In all cases, if a match is made through our services, consumers are under no obligation to work with service professionals referred by
ServiceMagic. In addition, if we are unable to match a consumer with service professionals from our network, we may provide the consumer
with contact information concerning service professionals outside of our network.
In addition to our matching services, consumers may also access our online library of service-related resources, which primarily include
articles about home improvement, repair and maintenance, and related tools to assist consumers with the research, planning and management of
their projects, and general advice for working with service professionals.
Marketing
We market our services to consumers primarily through search engine marketing, as well as through affiliate agreements with third parties.
Pursuant to these agreements, third parties agree to advertise and promote our services and the services of our member service professionals on
their websites and we agree to pay them a fixed fee when visitors from their websites submit a valid service request through our website (on a
cost-per-acquisition basis) or click through to our website (on a cost-per-click basis). We also market our services to consumers through the
purchase of paid listings displayed in yellow page directories, portals and contextual home improvement related sites and, to a lesser extent,
through traditional offline advertising. We market our services to service professionals through our sales force, which obtains information
concerning service professionals through a variety of sources. We also promote online enrollment in our network through search engine
marketing, relationships with trade associations and affiliate marketing relationships.
Revenues
Our revenues are generated from fees paid by members of our network of service professionals for consumer leads, regardless of whether
the service professional that received the lead ultimately
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