CAPTURE RESIDUAL REVENUE STREAMS WITH WEB SERVICES PARTNER PROGRAMS

1. CAPTURE RESIDUAL REVENUE STREAMSWITH WEB SERVICES PARTNER PROGRAMS Doug Gaylor Vice President, End User Sales Crexendo Business Solutions SEO * WEB MARKETING * ECOMMERCE

2. BUSINESS OUTREACH HAS CHANGED

3. Something to Think About! The Internet just turned “40” First Web Page 1991 – Almost 20 Years of Technology Development The average person each month: Visits 59 domains Views 1,050 pages averaging 45 seconds for each page Spends about 25 hours a month searching the web Each surfing session lasts approximately 51 minutes 17,000 website domains a day are being added to the internet Google CEO Eric Schmidt called the internet a “Cesspool” of information related to the quality of content and amount of useless information

4. Becoming The “Trusted Advisor” For Your Clients • Businesses Have Downsized, Economized, and Felt The Pressures of the Economy • Every Business Has a Website, But Most Don’t Benefit From It • Web Marketing Services Are a Hot Topic For Every Business to Help Them Grow • You Have the Relationships With Your Clients to Introduce These Services as the “Trusted Advisor”

5. EVALUATION CHECKLIST • Web Services Portfolio • Web Services Revenue Perspective • Partner Program Levels - Margin Opportunity • Resource Requirements • Best Practices • Proposal Process • Crexendo’s Approach

6. WEB SERVICES PORTFOLIO • SEO • Tools for driving lead generation, market reach, and traffic to websites • Lead Generation Platforms • Web platform configured to drive quality of prospecting and profiling traffic • Ecommerce Platforms • Web platforms that include robust shopping carts, product management, customer database, inventory management, and promotional tools such as social networking, integration to ERP, etc • Social Networking • Social platforms or social networking services provide tools for managing customer interactions • Web Marketing • Search Engine Marketing tools and services are advanced optimization offers that focus on improving “performance” to increase “conversion” of traffic to buyers

7. REVENUE OPPORTUNITY - SEO SEO SERVICES INCLUDE: • Organic Optimization • Paid Search Optimization • Link Building • Site Consultation/Analytics • Conversion Rate Optimization • Hosted Plan for Maintenance Sales Transactions (Single/Bundled Solution) • Small Business ($2500-$25,000+) • Midsize Business ($5000-$50,000+) • Enterprise ($10,000-$100K+) INCREASE CLIENTS WEB TRAFFIC CHANGE CLIENT ACQUISITION PROCESSES

8. REVENUE OPPORTUNITY – WEB PLATFORMS WEB PLATFORM SOFTWARE & HOSTING: • SaaS Software for LeadGen Websites • SaaS Software for Ecommerce Websites • Monthly Web Hosting Service • Professional Services – program/design Sales Transactions (Single/Bundled Solution) • Small Business ($5,000 - $25,000) • Midsize Business ($10,000-$75,000+) • Enterprise ($15,000-$100K+) INCREASE VISIBILITY AUTOMATE CLIENT SALES PROCESSES

9. REVENUE OPPORTUNITY – WEB PLATFORMS SOCIAL SOFTWARE & HOSTING: • Blog and Microblog • Community linking/positioning • SaaS or platform offers • Planning, development tools, analytics & hosting • Professional Services – program/design Sales Transactions (Single/Bundled Solution) • Small Business (Setup plus) ($2500-5000 per month) • Midsize Business (Setup plus) ($5000-$8000 per month+) • Enterprise (Setup plus) ($10,000-20,000 per month) ENGAGEAND INTERACT

10. A Quick Internet Primer “I Didn’t Know What I Didn’t Know”

11. PROGRAM LEVELS – MARGIN/COMMISSION REFERRAL/AFFILIATE PARTNER LEVEL ADVANCED PARTNER LEVEL Referral Commission 5-12% per sale Affiliate Commission 2%-10% per sale Sales Commission 10-15% per sale Plus, Residual Income 0-20% Sales Commission 15-25% per sale Plus, Residual Income 10-25%

12. REFERRAL PROGRAMS • Reseller’s Commitment is to generate leads for web services and receive commission for sales that close • In this model, the provider manages the web services sales process, closing, and on-going support • Reseller is paid commission for active recruitment of web services • Requires less commitment of resources, but allows resellers to test the waters to determine interest in higher levels of partnership • Typically pays ongoing commissions for additional sales closed within a 12 month period

13. PARTNER PROGRAMS Program Levels – Vary by Provider • Sales commissions vary from 10%-15%, and may have incentive spiffs • Business opportunity is to capture the revenue splits on web services, hosting, one-time charges, and training. Splits range from 15%-25% • Some programs allow resellers to gain splits on the monthly hosting, while others do not, other limit the splits after the term of the initial agreement • Support plans should be cautiously reviewed for terms and conditions, as some programs do not provide high levels of partner interaction • Learn if you are dealing directly with a provider or a third party and clarify how the relationship works

14. PROVIDER OPTIONS – All In One Vs. A La Carte • SaaS Providers • Web Hosting • Ecommerce • Web Marketing Services • Hardware Providers • ECommerce • Independent Marketing Providers • SEO Services Companies • Marketing Firms • Carriers • Social Networking Services • Hosted Ecommerce and Web Services

15. COMMITMENT – EXPECTATIONS VARY BY LEVELS AND PROVIDERS Leverage Your Sales and Support Processes • Willingness to engage your customer base • Commitment to train your sales and support teams • Agreement to Host Quarterly Live/Seminars and schedule weekly webinars • Designate a sales expert, support expert, and project coordination resource • Provide content development resource (in-house/outsourced) (Consider using co-op) • Ensure your website is performing (credibility) and commit small investment if needed

16. COMMITMENT – BEST PRACTICES Build own lead generation through SEO, SEM and Ecommerce Dedicate a team to web and content development, and inbound marketing initiatives, leveraging co-op Commit to monthly online promotional tactics with aggressive outreach and focus on progressively seeding the sales pipeline using email, webinars, online campaigns, landing pages, SEO and social networking Offer referral programs to customers Invest in education, promotion and tactics to keep customers connected to their business actions Transition traditional marketing spend to online spend

17. PROPOSAL PROCESS Understand the proposal process and what tools are available to you for each service. What’s the process for each service? Does the provider help you in the provisioning process? Does the provider assist you in the demo and closing process? How long does it take to schedule the various levels of the proposal process and then, the time to installation? What requirements are needed to be provided by the customer to engage each web service? How does the provider share expectations? How involved are you with your customer in the process?

18. CREXENDO’S APPROACH • We work with your existing customers as the “Trusted Advisor” to help them understand their website’s potential • We run the sales process from the initial discovery review to the sales and implementation process • After the Initial Discovery, we engage the Referral Agent only if needed or requested by the agent or client • We Propose, Demo, and Position the Solutions! • We sell it, you and your clients benefit!! • Every one of your customers has a website, and most need our services!

19. CREXENDO’S PROGRAMS • Crexendo Has Two Primary Programs: • Referral Agent Program • VAR Reseller Program • Referral Program pays Lead Referral Commissions up to 15% for sales made • VAR Program pays Commissions up to 25% plus an additional 20% on monthly ongoing charges • 25% Discount on Any Web Marketing Services Purchased by Partners

20. CONCLUSION • Web Services/Interactive Services is estimated for $55B in growth from 2009-2014 (Forrester) • Web Services will continue to expand with the growth of mobile devices in the same period • Digital media disruption coupled with a weakened economy are key drivers of the massive transition of marketing spend • Web services are low-risk to implement allow resellers to make a transition in adding residual revenue opportunities • Incremental add-on revenue and residual income goals are attainable with little risk, but require focus and attention for success • Referral programs allow resellers and service provider to test the waters in their customer base, and graduate to higher returns when ready or comfortable to expand commitments

21. What Are You Waiting For?? Crexendo Is The Right Partner For You!!

22. Doug Gaylor VP, End User Sales dgaylor@crexendo.com Free Web Analysis www.crexendo.com See Us At Booth 614 Bob DiGangi VP, Reseller Channels bdigangi@crexendo.com Crexendo Referral Program http://www.crexendo.com/referral-program.html THANK YOU