Analyst Day

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Analyst Day

• March 18th, 2005
• Orem, Utah
• AMEX IIG

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Safe Harbor

• This presentation contains forward-looking
  statements within the meaning of the "safe
  harbor" provisions of the Private Securities
  Litigation Reform Act of 1995. These statements
  are based on management's current expectations
  and beliefs and are subject to a number of risks
  and uncertainties that could cause actual results
  to differ materially from those described in the
  forward-looking statements. We refer you to the
  risk paragraph in the recent SEC 10-K and 10-Q
  filings.

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Opening Remarks

• Don Danks, Chairman and Chief Executive Officer

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Thank you for joining the IIG management team to
learn more about StoresOnlineand iMergent.
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Logistics

• Please note that todays event is being webcast
  on www.imergentinc.com and will be posted for 90
  days.
• Therefore, we ask questions be written down and
  held for the QA sessions, so that listeners can
  hear all of the questions and responses.

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Introductions
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Todays Agenda

• StoresOnline Demo
• Customer Service Review
• Internal Database Demo
• Distribution Channel Review
• Looking Forward
• Global Reach
• Growth Strategy

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Reminder

• The purpose of today is to enable investors to
  meet more members of management and experience
  StoresOnline. Please note management reiterated
  its financial guidance in a press release on
  Tuesday, March 8th. Today management will only
  comment on historical performance.

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StoresOnline

• David Rosenvall, Chief Technology Officer

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StoresOnline History

• The AND Group Cryptography
• Agfa, Adobe, Bitstream
• Magellan Systems CD-ROM Catalogs
• JCPenney, Lands End, LLBean, Spiegel, Eddie
  Bauer, Air France
• StoresOnline eCommerce

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Technology

• Oracle
• EMC2
• Cisco
• Sun
• eBay
• UPS
• Verisign
• Visa / MasterCard

• C
• Java
• Apache
• RedHat Linux
• Veritas

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eCommerce Requirements

• Hosting
• Programming
• Design
• Security
• Backup
• Certification
• Integration
• Changes

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• StoresOnline
• Demonstration

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StoresOnline Testimony

• "It would have been 1,000 times more difficult if
  StoresOnline hadn't come along. We have 15 pages
  with Network Solutions still sitting out there
  that we will never use. We had already been in
  that struggle for a year and didn't know where to
  go next. With StoresOnline we were able to do the
  whole thing-the whole shopping cart-do our own
  ordering rules and set it up the way we wanted
  to."
• Diana Blair
• www.mapbooks4u.com
• www.sportstuff4u.com

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eBay Testimony

• It is a lot faster. It allows you to list an
  eBay auction with a click of a button rather than
  having to go in and enter text. It saves you
  time because you dont have to do it twice. You
  only have to do it once.Ryan Moor
  www.silkscreeningsupplies.com
• www.shirtspace.com

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QA
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Customer Service Review

• Clint Sanderson, Vice President Operations

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Customer Support

• Phone Support (700 am to 600 pm MST)
• Live Chat and E-mail (24/7)
• Web Site Programming

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Recent Initiatives
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Service Metrics

• Performance Measurement Criteria
• Phone and Live Chat Support
• Service Level
• Satisfaction Level
• Programming
• Satisfaction Level
• Scale
• Poor (1) Fair (2) Average (3) Good (4) and
  Excellent (5)

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Dan Jones Associates

• Over 25 years experience
• Conducted thousands of research studies in Utah
• Range includes governmental agencies political
  candidates major television, radio stations and
  newspapers advertising and public relations
  agencies and public utilities
• Belongs to many professional organizations
  including American Marketing Association (AMA),
  Marketing Research Association (MRA), American
  Association of Public Opinion Research (AAPOR),
  Qualitative Research Consultants Association
  (QRCA)  

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Survey Methodology

• Objectives
• Measure customer satisfaction with telephone
  calls made to customer service
• Determine the number who have used the chat
  service and their satisfaction with that service
• Determine whether expectations were met by the
  programmer
• Sample Size
• 161 interviews for phone support
• 152 interviews for programming

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Performance Results
Results for Dec. 1, 04 - Mar. 1, 05
Scale Poor (1) Fair (2) Average (3) Good (4)
and Excellent (5)
Not sufficiently verified by Dan Jones
Associates
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QA
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Internal Database Demo

• David Rosenvall, Chief Technology Officer

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QA
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Distribution Channel Review

• Brandon Lewis, President and Chief Operating
  Officer

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Small Business Solution
iMergent focus Small business eCommerce
Education
Ongoing Relationship
Turnkey Software

• Preview session provides overview of e-commerce
• Full-day workshop on e-commerce success
• Marketing strategies
• Site design
• Optimization approaches
• Tips and tricks
• Use of iMergent software

• Free state-of-the-art merchant information
• Free training DVD
• Additional products and services
• Hosting
• Mentoring and coaching
• Traffic building products
• Other small business products and services
• Specific training opportunities The Power of
  eBay workshops

• Intuitive for customer to set up and use
• Flexible hosted software with a complete set of
  tools
• Easy to maintain and change
• Library of marketing strategies, case studies,
  recommendations
• Advanced e-commerce features
• Site optimization utilities
• Integrated
• eBay
• UPS
• Payment processors
• Accounting

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Educational Sales
An education-based sales process
Direct Mail to Prospects Preview Consulting
Session Sales Workshop Software
Sales Follow-On Revenues
The sales process has transferred directly to
English-speaking international markets
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Sales Process
Software sales at workshops w/ follow-on revenues
Preview Session
Full-day Workshop
Follow-on Revenues
Revenue model

• Nominal 30 attendance fee for full day workshop

• 5,000 average software license sale

• 150 first year set-up and hosting
• 24.95/month per site for ongoing hosting and
  access to on online services
• Other products, services and training

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Preview Sessions

• Modular Preview Session Content
• How large is the e-commerce opportunity, and what
  is the potential for both existing businesses and
  entrepreneurial ventures?
• What kinds of products, services, and information
  are currently offered through e-commerce, and
  which are the most successful?
• How do existing businesses leverage e-commerce as
  an additional channel to market?
• What constitutes a successful e-commerce
  advertising approach and how does it consistently
  drive new traffic and customers?
• How are local, regional, or international
  marketing strategies effectively used to reach
  target audiences?
• What are the most common roadblocks that Internet
  merchants eventually face, and how can they be
  avoided?
• How is e-mail appropriately used to promote and
  sell products and services online?
• What are the potential advantages of offering
  informational products and services online?
• What cutting-edge promotional techniques are the
  most successful in driving traffic and web site
  sales?

• Free 90-minute Preview Sessions provide an
  overview of the opportunity presented by
  e-commerce, explain key success factors, and
  address common questions merchants have
  concerning the Internet
• Upon completion of the Preview Session,
  participants are invited for only the cost of
  lunch, to a Full-day Workshop, which provides
  in-depth education in the e-commerce and
  marketing concepts outlined in the preview
• iMergent conducts over 2,300 preview sessions
  annually and educates over 150,000 small
  businesses and entrepreneurs in 130 U.S. markets
  and a number of foreign countries

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Full-day Workshops

• Modular Full-Day Workshop Content
• History and background of the internet and
  e-commerce
• Technical requirements to run an e-commerce site
• Effective site design and layout
• E-commerce automation and other tools to operate
  24 hours/day
• Integrating merchant accounts, accounting
  software, and banking
• Using statistical tools to understand and
  optimize site traffic, conversion rates, and
  order size
• Understanding and making the most of directories
  and search engines
• Using keyword and reverse search tools to
  understand the market for your product or service
• Leveraging bid-ranked search and per-click
  advertising
• Raising awareness through link trading with other
  web sites
• Finding and using vertical portals to help drive
  targeted traffic to your site
• Using banners and banner exchange programs
  effectively
• Writing and designing advertisements that sell
• Using web rings to promote your web site for free
  
• Harnessing the power of affiliate programs
• Using online auctions to expand your marketing
  reach
• Leveraging the power of eCRM appropriate and
  effective use of e-mail, newsletters, and other
  ways to reach your customers

• The full-day workshops are intensive educational
  sessions that cover major factors of online
  success, including
• Effective site design and layout
• Customer segmentation strategies
• Proven marketing techniques
• Website analytics
• Technical requirements
• Merchant accounts
• Integrated e-commerce solutions
• Workshops are conducted by professional
  instructors who focus on presenting proven
  success strategies and methodsusing
  easy-to-understand language, practical examples,
  and real-world case studies
• iMergent conducts over 500 full-day workshops
  annually, educating over 40,000 small business
  and entrepreneurs domestically and internationally

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eBay Training

• The eBay Training seminars are provided to small
  business owners and entrepreneurs who want to
  expand their marketing reach by taking advantage
  of the eBay marketplace
• Training seminar content is tailored to an
  audience that already understands e-commerce
  marketing strategies and approaches, and is aimed
  at creating eBay Power Sellers
• iMergent is on target to conduct over 250 eBay
  training seminars this year, educating over
  15,000 small businesses and entrepreneursmore
  than eBays own University program
• The seminar is a second full day touch-point for
  iMergent to educate its customers
• Over 70 of customers opt to attend this seminar
• Provides additional opportunities for iMergent
  partners

• Modular eBay Training Content
• eBay Registration
• eBay Myths and Reality
• Common mistakes eBay Sellers Make
• Commonly Encountered Buyer Strategies
• Merchandising Approaches
• Payment Processing and Revenue Management
• Selling Basics Images and Ad Copy
• Auction Promotion Strategies
• Pricing
• Shipping
• Using Metrics
• Incorporating Testing to Optimize Sales
• Advanced Selling Tools (TurboLister, etc.)
• PowerSeller Strategies
• Managing Feedback
• Customer Communications Strategies

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Hosted Education

• Modular Hosted Content Library
• Preliminary Resources (example tutorials)
• Preliminary market research
• Website promotion overview
• Research tools
• Domain name management
• Basic Promotion Strategies (example tutorials)
• Relevancy search engine optimization
• Using vertical portals
• Basic link trading
• Submitting to live directories
• Key performance metrics
• Basic bid ranked search engine strategies
• Classified ad strategies
• Permission marketing
• Intermediate Promotion Strategies (example
  tutorials)
• Google AdWord strategies
• Webrings

• iMergent hosts a continually updated library of
  tutorials, case studies, and white papers on
  website promotion strategies, internet marketing
  resources, and other useful e-commerce techniques
• The content library is available to all iMergent
  customers, and is organized in order of
  increasing sophistication to address the needs of
  merchants at all life-stages of their e-commerce
  business
• The content library provides a framework for
  implementing an educational approach to iMergent
  partners offerings

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Looking Forward

• Brandon Lewis, President and Chief Operating
  Officer

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Global Opportunity

• Business model has transferred to
  English-speaking countries without major
  modification
• Very successfully entered Australia, Canada New
  Zealand and the U.K.
• Utilizes existing iMergent infrastructure without
  need for significant international infrastructure

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Growth Strategy

• Continue to expand U.S. market
• Test more English-speaking global markets
• Leverage existing infrastructure and sales teams
• Add new products/services to business model
• Additional customer tools eBay training
  Links4Trade
• Actively develop recurring revenue streams
• Hosting 24.95/storefront/month
• Revenue share arrangement with existing partners
• Evaluate partnership and vertical market
  opportunities

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QA
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Thank you for your participation