The Presentation

GameStakes generates traffic, turns traffic into members and members into sales. That’s why we say it’s Where Games Mean Business.

Click the image on the right to see the GameStakes presentation.

 

 

 

 

Executive Overview

GameStakes is a marketer’s dream with a platform that combines entertainment and marketing to generate explosive sales. 

The platform is a traffic-generating engine that draws millions of loyal members who are compelled to buy, compelled to tell you about themselves and compelled to get others to join as well.  It’s so powerful that we coined the term “Promotainment” to define it.  The platform is called GameStakes Promotainment System (GPS for short) and it touches every aspect of marketing like never before.  Let us explain.

GPS provides the vehicle for members to be entertained with games, contests, trivia and other fun activities with the chance to win cash and prizes.  Members play the games to win raffle tickets and these tickets are entries into a free drawing.  And while they are being entertained, right alongside the fun are promotions and advertising messages unobtrusively shown to this captive audience time and time again.  So even if the viewer doesn’t click on the banner, they are presented with the advertisers’ message thereby increasing brand recognition and awareness.  But advertisers want more than brand recognition – they want sales.

A key to generating sales is getting viewers to click on banners so they are directed to the advertiser’s complete message or promotion.  This is a strong suit of GPS.  Just for clicking on the banner, they earn tickets for the next raffle.  It’s a sure-fire method of increasing the effectiveness of banner advertising. 

GPS also boosts the allure of email advertising in a similar way.  By offering tickets for reading emails and tickets for responding, emails have a much better chance of being read and higher response rates are almost certain.  Another major factor in ensuring high response rates is knowing your target audience.  GPS includes a survey capability for this purpose.  Players get tickets for completing the survey while key demographic information is collected.  The membership base created is ideal for targeted marketing with the real potential of very large revenues.

Now add a powerful referral system.  Members refer others and when those referrals buy anything, the referring member earns more tickets plus a commission.  Plus it’s multi-level, so when a referral tells someone that buys, the original member earns a commission on that person, as well.  This referral network goes down 5 levels making the commissions members can earn significant.  The combination of tickets and commissions really gets them motivated to tell their friends, family and business associates.

The very powerful marketing strategies of GPS were designed to motivate behavior and they really work.  Whether it’s clicking on banners, responding to emails, completing surveys or getting members to buy, it’s never been easier.  Furthermore, GPS makes adding new activities easy and when tickets are awarded, the players are motivated to participate in these new activities as well. 

By combining entertainment and marketing, GPS is a quantum leap from how marketing is currently being done on the Internet.  So what does all this mean for GameStakes – a huge bottom line!

There's one more thing too.  To illustrate the public market possibilities, one only needs to look at two companies publicly traded – IWON and Pogo.   IWON, a wholly owned subsidiary of IAC (NASDAQ: IACA) was trading over $18.50 and Pogo of Electronic Arts Inc. (NASDAQ:ERTS) was over $19.00 per share at the end of October 2009.  Trading like this, especially in these economic times, clearly demonstrates the market potential.  Moreover, these companies have games, but are nowhere near what GameStakes is planning.

Business Strategy

Having an innovative marketing solution like GPS is a great start.  But turning that into a viable, thriving and sustainable business is what really matters. 

The question then is: How does GameStakes best capitalize on this tremendous opportunity?  This needs a sound strategy that takes the business from startup to maturity. 

The entertainment is free, but there really is no “free lunch”.  The free aspect of GPS will drive customers to the revenue producing channels. 

The Company will also incorporate a social network strategy similar to what MySpace and Facebook did to build their membership base.  Members will also be incentivized for convincing others to join.

The Company's business strategy follows the simple three-phased approach of: LAUNCH -> SELL -> EXPAND.

	GameStakes will launch and operate its own GPS web site.  The purpose of this site is to build a large membership base.  The first 180 days of operation will focus on finalizing the site, developing games and the launch of the site.
	Possessing a large, targeted membership base means you have an outstanding opportunity to generate revenues in many ways.  GameStakes will leverage its membership base through advertising and promotions, affiliate programs and selling complimentary products and services.
	More than ever, companies are looking for cost-effective ways to promote their products and services to generate sales.  These companies are looking for the next innovation to replace banner ads and spam.  GPS is just the answer they’re looking for.  Starting Year 2, a sales effort will begin to license GPS to outside organizations.  In addition, GameStakes will look to joint venture with companies that have an existing membership base in various vertical market segments such as kids, sports, music and baby boomers.

Central to the business strategy is integrating the elements of social networking into the GPS Platform.  There's good reason for this too.  Companies like Facebook, MySpace and Twitter are the talk of the Internet and have built large memberships.

The social network elements in GPS revolve around members’ profiles.   Every member has a profile which gives them access to all the social network functions.  Through their profiles, members can search for others by school, company, city, interests, and other criteria; send public and private messages; hold private chats; participate in blogs and forums; plus a host of other functions. 

GPS social networking encourages new ways to communicate and share fun experiences.  This social networking relates directly to the entertainment value that GPS provides.  For instance, members will be able to create their own groups.  Groups could be fellow employees in an office; alumni from a school; patrons of a bar; members of a club; parishioners of a church; and even those in other social networks.  Members will be able to create just about any personalized group they want, invite others to join and then compete within those groups.

GPS also employs social network strategies to build a targeted membership base.  The capability for its games and contests to be directly embedded into other social network sites and rewarding members with incentives for telling others that join will help grow memberships. 

Better knowledge of the customer is also where the social profiles come into play.  The demographic info made available through the social profiles is incredibly powerful.  It makes it possible to target users based on a variety of criteria from as simple as age and gender to as specific as members’ favorite movies and music.  This provides a tremendous value add to both advertisers and to ongoing development of GPS.  It also increases the stickiness of the site and encourages users to return often and spend time on the site. 

Concepts like these should promote viral growth of both the social network and GPS which is instrumental in forming the basis of a very robust revenue model.

Revenue Model

Yes, free stuff can result in sizeable revenues.  Those enjoying the games and entertainment are exposed to promotions and advertising.  Now add the surveys and you know the customer’s interests, making that person significantly more valuable.  Promotions and advertising can then be targeted to the interests of the member and response rates should be high.  GameStakes has identified several revenue streams that it believes will quickly (6- 9 months) generate a very positive bottom line.

• Advertising Networks: Advertisers know when what they’re selling is being exposed to a large targeted audience (those already known to have an interest) then response rates increase dramatically.  As the GameStakes data base grows, its value to advertisers also grows.
• Product Sales: Just as advertisers see the value of a targeted prospect list, so does GameStakes.  The Company plans on benefiting from its targeted data base by directly selling goods and services to its members.  Products with high margins and that are of interest to its members will be sourced for sale.  Just think how effective it would be if someone completed a survey and they were interested in pop music and were then exposed a variety of teen merchandise like Brittney Spears new CD or tickets for the next American Idol tour.  GameStakes will initially look at companies that drop ship to avoid costs of warehousing and infrastructure.
• Info Ads: Banners, Flash Ads and Video Promotions will be unobtrusively presented at the same time members are being entertained.  Then when they click on the ad or promo, the person is directed to a more detailed explanation of the product or service.  This very effective approach is similar to what many magazines do – they present content in a form so the reader thinks of it as an article or editorial rather than an advertisement.
• Electronic Content: Content that can be electronically delivered via the Internet is ideal since there is no warehousing involved.  GameStakes will look for products that can be delivered electronically.  Products like these generally have very high profit margins.
• List Buyers: The more people on the list that are known to have an interest in a particular subject area, the more valuable the list.  For instance, just think how valuable a list of those that plan on buying running shoes in the next 30 days would be to Nike or a list of those that are currently planning a vacation with the locale they plan on going to would be to American Express Travel.  Vendors pay a premium for lists like these and that’s just was GameStakes has.  By knowing what people are viewing, what they’re buying and the surveys they complete, GameStakes is able amass a wide range of detailed data about its members.
• Affiliate Marketing: There are many organizations with a web presence that reward those sending visitors, subscribers, customers, and/or sales to their web site.  GameStakes will become an affiliate of selected sites that it believes have a good affiliate program and share similar values.  By directing its members to these sites, the revenue potential is sizable.
• Direct Sellers & BIZOPs: There are many organizations that recruit salespeople (called Distributors or Independent Business Owners) to sell their products.  Their salespeople build a down-line by recruiting others who then recruit others and so on.  Royalties are paid from those that join and from sales of those in their down-line.  This is perfect for GameStakes.  The Company will sign up as a Distributor for organizations that it deems trustworthy and have a valuable product line to offer GameStakes members.  The Company benefits directly from products purchased by its members but also indirectly when members tell others that purchase.  The Company has already identified two Direct Sellers organizations – Arbonne and StemTech.  GameStakes will also stay up to date of new trends in this area and new companies.
• Licensing: Acquiring members and converting those members into paying customers can be a costly proposition.  GameStakes has developed a unique business strategy to reduce the cost of acquisition, increase sales and add a new profit center for the companies.  Companies are in dire need of marketing like this and GPS is an attractive and viable solution.  In additions to using these strategies for its own site, GameStakes will licensee GPS to companies.  These Companies will gain a whole new sales channel for selling their products and GameStakes’ profits should be significant from the associated licensing fees.  Corporate licenses like Disney, American or Nike can elect to host a GPS site themselves.   GameStakes will also offer a SaaS (software as a service) solution where it host the licensees’ GPS site.  This is a very cost-effective option for small to medium sized business since there’s no hardware or technology costs.
• Vertical Market Partners: Vertical Market Partners (VMP) are organizations that understand their market segment and have an established customer base.  Examples of these organizations are AARP for baby boomers; NOW for woman; or even the Salvation Army for charities.  GameStakes sees such great potential in forming joint ventures with these organizations that it will provide its GPS technology free of charge in exchange for a revenue sharing agreement.  The VMP is expected to bring its vertical market expertise to the joint venture and operate and manage GPS site.  GameStakes will host the GPS site and provide the required technical expertise.  This will expose GameStakes and its GPS platform to many different yet segmented markets.
• Mobile Marketing: The rise of the iPhone and other smart phones has supercharged the mobile gaming market. GameStakes has a mobile strategy to deliver its games and promotions on smart phones and handheld devices, and to keep its customers engaged wherever they happen to be.
• The Holy Grail: When you’re seeking a large membership base charging a membership fee is counterproductive.  As such, few charge and instead rely on revenues from advertising.  But GameStakes has found the Holy Grail of making money from the large memberships it creates way beyond just advertising.  It works like this.  The basic entertainment is free for all to enjoy.  There will, however, be a Gold Membership where there is a fee.  Being Gold, allows those members to benefit monetarily from those they refer.  This revenue sharing approach is sure to make GameStakes really standout.  Later a PLATINUM Membership level with even more benefits (and of course higher fees) will be introduced.

GameStakes will also continue to explore other viable revenue opportunities.

A Winning Formula

Opportunities like this don’t come along often and GameStakes is ready with a winning formula for success that includes:

• A great product with a viable plan to that product into big revenues;
• A powerful and targeted marketing solution;
• State-of-the-art technology with a system that is proven to generate traffic, members and sales;
• A seasoned management team with a proven track record and visionary yet practical approach;
• The right industry experience at the right time;
• A business strategy aimed at quickly capturing market share; and
• A comprehensive effective corporate plan with an aggressive rollout.

With a winning formula in hand, Management believes that GameStakes will be a smash hit and investors will see a rich ROI.

Capital Requirements

In order to meet the cash requirements, as described in the GameStakes Business Plan, the Company will offer equity positions through either a private or public offering of shares. Currently, it is envisioned that the offering will be 2.5 Million shares at $1.00 per share. In order to justify such an offering, the Company will initially raise sufficient bridge capital to become fully operational and income generating. This higher risk bridge capital will be raised from “friends and family” participants and this equity will be offered in limited blocks at $.25 per share. The total bridge capital requirement is $350,000.

Anyone wishing to learn more about either position should request formal documents from the company by emailing such request to invest@gamestakes.com.

This is not a solicitation to invest.

Forward Looking Statement: 
This document contains certain forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities act of 1934, as amended, including, but not limited to, statements as to future operating results and plans that involve risks or uncertainties. We use words such as “expects”, “anticipates”, “believes”, “estimates” to identify forward looking statements. Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of the Company to differ materially from any future results or performance expressed or implied by those projected in the forward-looking statements for any reason.