© 2010 Milyoni, Inc. All rights reserved. Milyoni Confidential 1

500 Million People and Growing: The Facebook Conversation Turns to Commerce

Socially-Acceptable Selling on Facebook

Selling in Social Networks DMA Social Spotlight: October 27, 2010 Presented by John Corpus, CEO

© 2010 Milyoni, Inc. All rights reserved. Milyoni Confidential 2

Agenda

  Why online merchants should consider selling within Facebook

  Options for social commerce

  Social commerce is not about shopping

  Unique dynamics about selling within Facebook

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Social Commerce The marriage of Social Networking and eCommerce

Social Networking $6B Channel Opportunity

Growing 2X Search

1B Members Worldwide

Spending to Grow 17%

Virtual Goods $35M - Facebook

eCommerce $230B Sales 2009

9% growth projected 2008 to 2013

1 Million Ecommerce Sites

63 Million US Households

Social Commerce

500 Million People and Growing…. …the Conversation turns to Commerce.

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Facebook: The Place to Be

•  Facebook is the leading online social network

•  #1 most visited website surpassing Google this year

•  More than 500 million active users - worldwide

•  Grows at a rate of 5 to 6 million new users per week

•  More than 50% log on at least once a day

•  Average user spends 55 minutes per day

Sources: Facebook.com and PersoanlizeMedia.com

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Facebook: Already a Commerce Platform

•  1.5 million businesses on Facebook

•  100 million+ active users via mobile apps

•  $76,373,905 spent on Facebook gifts annually

•  $630,084,720 made in advertising revenue on Facebook

•  The most active platform for social commerce

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Social Commerce Options

1.  Promote Brand Loyalty Starbucks, Oreo Cookies, Skittles, etc

2.  Drive Fans to Website Majority of online merchants use this approach

3.  Reshape the buying experience Uncover new opportunities and new customers

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1. Promote Brand Loyalty

Facebook fans spend an

additional $71.84 annually

on consumer products than

non-fans. They are also 41

percent more likely to

recommend them and 28

percent more likely to

continue using them.*

*Forbes

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2. Drive Fans to Website

Facebook to …

….the Web

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3. Reshape the Buying Experience

Lakers win! Get Championship

Pack Here

Lakers Rule! I am getting it now

Kobe Rocks! I am getting one too

It’s not about Shopping, ���It’s all about the Conversation

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Key Social Commerce Ingredients

•  Contextual Mix •  Profile Driven

Social Product Catalog

•  Merchant Post •  Viral Fan

Promotion

Social Merchandising

•  Instant Buy •  All Facebook

Process

Secure Order Processing

Order Fulfillment Pick * Pack * Ship

Reshaping the Buying Experience

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Viral, Instant, Contextual

Viral, Instant and Contextual 2,789 Likes, 256 Comments

Sold Out in Less than 2 Hours

We make buying on Facebook Easy and Fun

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“Social” Product Catalog

•  Ideally, within Facebook

•  Not everything in your catalog – be selective

•  Contextual – profile-driven storefront

•  Embedded Viral or Sharing Services

•  Use of “LIKE” button and other recommendation tools

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Example: Social Product Catalogs

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Social Merchandising

•  Merchants - initiate great conversations, promote relevant products, reward participation

•  Fans/Customers – extend the conversation, recommend what you like (note: not all fans are equal)

•  Software providers – make it easy, make it natural

WORD OF MOUTH The ultimate form of merchandising

The activity of promoting the sale of goods

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Social Merchandising – Merchant Role

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Social Merchandising - Fan’s role

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Social Merchandising – Wall Buys

Taking your Products to the Wall

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Social Commerce - Barriers

•  Questions about Security & Privacy

•  Questions about ROI - Return on Investment

•  Competing Priorities

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Social Commerce – Security Layers

Facebook Commerce Payment

Security’s Compromise is Convenience

Each layer has its own rules on privacy and security

Social Profile • Name • Gender • Geo • Other…

Commerce Profile •  Log-On/Password •  Product Selection •  Billing/Shipping

Payment Profile - Credit Card #

© 2010 Milyoni, Inc. All rights reserved. Milyoni Confidential 20

Social Commerce Barriers

Simple ROI Model •  Passionate Fan Base* 5000

•  Monthly Conversion Rate .01 (50 customers)

•  Average Sale Price $30

•  Total Monthly Sales $1500

Cost •  Time & Tools

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Key Take-a-ways

•  Social Commerce is already here

•  Privacy & Security can be effectively managed

•  Think differently about Facebook – its not about shopping

•  Learn by doing – now is the time to jump in

Contact Milyoni for a Full Product Demo Go to www.milyoni.com

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Q&A

John Corpus"CEO"Milyoni, Inc."john@milyoni.com"