John Detitta stole nearly $4,000 from our company. His company, Ad Film Ties, stole my bosses business plan, who in turn was fired by the head of the company because of this debacle, which laid me off eventually.
John Detitta is an immoral son of a beech. I have posted our copyrighted business plan. Our attorney had hoped they raised capital, but because of how stupid John Detitta is they never did. Hence, we never got to really collect. After all, stealing a copyrighted document and using it when its not yours is illegal.
Here is AdFilmTies' business plan. Well, its not there, but it has been sent to all of his competitors found in the business plan.
Business Plan
The information contained in this Business Plan is confidential and proprietary to AdFilmTies (referred to herein as AdFilmTies, AFTI, or the Company) and is being submitted to you solely for your confidential use in considering an investment in AdFilmTies, and with the express understanding that, without AdFilmTies's prior written permission, you not release this Plan, discuss the information contained in this Plan or reproduce or use this Plan for any purpose other than evaluating a potential investment in AdFilmTies.
By accepting delivery of this Business Plan, you agree promptly to return to the Company this Plan and any other documents or information furnished when asked to do so by AdFilmTies. For more comprehensive information, contact:
John De Titta
Business Plan
Table of Contents
Executive Summary 3
Company Objectives 3
Three Year Plan Summary 4
Proprietary Product 5
AdFilmTies Inc. Market 6
Delivery Mediums 6
Target Market 8
Opporrtunities 9
Competitive Landscape 11
Competitive Landscape Conclusions 13
Three Year Plan 14
Phase 1 15
Phase 2 16
Private Equity Offering 16
Sales Team and Sales and Marketing Campaign 16
Phase 3 20
Expand Exponentially 20
Phase 4 22
Exit Strategy 1 5 22
AppendAppendix A - Sales Campaign 23
Appendix B - Executive Management 23
Press Release and News Coverage 26
Appendix C - Financials 29
Income Statement 29
Balance Sheet 30
Statement of Cash Flows 31
Investment Opportunity 32
Return on Investment Projection 33
Executive Summary
Company Summary
AdFilmTies Inc. (AFTI - www.FilmTies.com) is the world's first membership based, social network interactive film financing community. Through various innovative and unique means, the Company has combined the creative fruitfulness of independent filmmaking with the financial productiveness of Internet advertising. FilmTies.com provides an avenue that allows its Members to decide if and when a film project is funded instead of leaving it up to industry corporatists.
AdFilmTies Inc. Is a dynamic independent feature film finance company that derives its revenue through an exclusive license of its patent-pending film financing model. The film model provides advertising solutions to corporations, ad agencies and local businesses. This is done by incorporating standard targeted media buys with the added value of branded entertainment, public relations, and feature film association, all of which are included in the cost of a standard impressions media buy.
AdFilmTies Inc. Launched its model in October with www.filmties.com and has successfully emerged from beta testing on January 15. As the world's first membership based Social Network Interactive Film Financing Community, the Company provides complete interactive tools to our members who visit the site to socialize, meet friends, classmates, and/or to interact with the film and music industry. FilmTies.com is part of the AdFilmTies Film Finance Model and strives to empower screenwriters, musicians, actors, artist, directors, producers, sponsors and, most importantly, the movie watching public.in addition to our screenplay and music competition, FilmTies.com Members will be able to vote on which concepts and talent are the best in their field.
It is the goal of FilmTies.com, through the AdFilmTies Patent Pending Film Finance model, to fund $100 million in independent film productions over the next three years by tapping into the $12 billion annual internet advertising market.
Objectives
Over the course of the next three years, AdFilmTies Inc. Will strive to achieve the following goals:
Raise $10 Million through a Series A private equity offering.
Hire professional sales and marketing staff.
Create distribution outlets for our product and website.
Successfully target and reach our optimum market on a national level.
Secure, through AdFilmTies and its subsidiaries, substantial revenue in order to support annual productions of at least 2 feature films and 200 stepping stones.
Become the leading Internet portal in our industry.
Generate $50 Million in revenue.
Implement Exit Strategy.
THREE-YEAR PLAN
A summary of AdFilmTies Inc. Three-year business plan, as it relates primarily to the launch and the expansion of its project, is outlined below through a four-phase strategy.
Phase 1
? Establish Company
? Identify market for AdFilmTies Inc.
? Develop Company Business Plan
? Develop Marketing Campaign
? Solidify working relationship with Web developer
? Partner with three national ad agencies for inventory
? Arrange relationship with State of California
? Bring 20 stepping stone projects into development
? Create and beta test website FilmTies.com
? Sign contracts for six feature films
? Develop relationships with distributors
? Gain recognition in internet ad publications
? Arrange partnerships with solid film producers
? Lay groundwork for Phase 2
? Completion date January
? Phase 1 is Complete
Phase 2
? Raise $10 million through Series A private equity offering
? Hire additional management team
? Implement Marketing Campaign
? Reach our target markets Sign 1,000, 000 new members
? Lay groundwork for Phase 3
? Completion date January
Phase 3
Adjust, if need be, the Marketing Campaign
Expand exponentially
Build infrastructure to maintain growth
Generate $50mm in revenue
Lay groundwork for Phase 4
Phase 4
? Implement exit strategy
Proprietary Product
FilmTies.com is an Internet based media outlet of a patent pending film financing model that brings together a dedicated, creative, and loyal community of filmmakers, musicians, artist, actors, film crew, and most importantly fans on a local and national basis. FilmTies.com is a social networking community that finances independent filmmakers through advertising placements on the site.
FilmTies.com Members are part of a community that includes active participants in the writing, developing, and financing of films, including millions of average filmgoers anxious to interact in the movie industry. We've taken the Internet and actually given it a purpose, said FilmTies.com's New York based founder and CEO, John De Titta. We saw that the up-and-coming model was the social-networking sites. Here, people that come to the site are funding the films simply by coming.
De Titta spent several years working with respected producers including Barbara De Fina (Goodfellas, Cape Fear, Casino) and. Former Nickelodeon president Albie Hecht, head of the Worldwide Biggies content development company, who has endorsed the new film fund and said he was in discussions about a feature. Variety
For the filmmakers, partnering with FilmTies.com is like a studio deal in many ways. FilmTies.com finances, oversees, and own the film, thus building a diversified film library In essence, the Company becomes the Executive Producer.By partnering with us, filmmakers benefit in numerous ways; the most important benefit being the time frame involved in movie production. Unlike most studios that take years to start development, when one signs with us, the production process from pre-production to distribution begins. Immediately by putting the project into a 20 task interactive website on filmties.com.
As noted, community input is invaluable for our business model, and as such, will act as a focus group'. FilmTies.com will survive through all fads of social networking communities because it provides a real tangible purpose and opportunity.
Its kind of like Project Greenlight meets MySpace.com, Kathy El Dorado Hills Film Commissioner the high concept FilmTies.com California Film Fund. Sacramento News and Review.
The Market
Delivery Mediums
As companies around the world strive to create economic growth through innovation and technology, the methods by which companies deliver strong products are constantly evolving. Coupled with the advent of the digital age and the new distribution channels that have developed through digital capabilities, businesses more than ever are looking for new and exciting ideas. AdFilmTies Inc. Will capitalize on the fastest growing Internet markets and concentrate on distributing and maintaining its unique product via FilmTies.com.
Current estimates from leading public sources, and through Company studies, indicate that the overall market for Internet social forums such as myspace.com and youtube.com is upwards of $10 billion.in the American market, which today houses the Internet's most lucrative social networking sites, reached $16 billion in mergers and acquisitions. It is expected that Internet social forum revenues will exponentially grow as the Internet becomes the premier venue for global communication, particularly when most of America and the world employ high speed Internet connections.
As the Internet Advertising Bureau figure shows, Q3 2006 ad spending was more than all of 1999 combined, as well as being up 33% year-over-year from 2005.
Target Markets and Community Building
The Entertainment market is media-savvy, cynical, and desensitized to traditional media. Marketing to them on their own terms is crucial for success.
FilmTies.com currently has 7200 Members
Our goal is to exceed 1 million Members
To date, FilmTies.com success has been purely through word of mouth promotion
FilmTies.com has over 1 million page views per month
Engagement: 300 minutes per month average per user
Strong demographics reaching the 18-35 year olds.
As of January the FilmTies.com Community Consists of:
Musician = 842,
crew = 226,
artist = 6,
filmmaker=1423,
fans = 2942,
Actors = 1644
Added Value and Benefits of Advertising on FilmTies.com
When one places a media buy with FilmTies.com he/she is no longer an advertiser with a product or service.instead, he/she becomes a film financier to a dedicated and loyal audience who welcomes ad placements. The net revenue from advertising placements finances films, helps puts crew and actors to work, allows musicians music to be heard, artist to showcase their work and fans to interact and participate. Below is a list of ad options a media companies can choose from:
Media company choose the film
Prominent ad placement
The client's company has the opportunity to receive a real Associate Producer credit on the film you are helping to finance
Media company receives an immediately loyal new customer base
The company will be mentioned in all of the film project's press releases
Supporting the Arts
Bringing jobs to the local community
FilmTies.com Integrated Marketing Opportunities
Targeted Banner Ads
Sponsored Groups
Film, Actor, Artist and Music Profile Sponsorships
Contest Sponsorships
Film Development Interactive Sponsorships
Local Targeted Sponsorships
Newsletter
Banner Ads: FilmTies.com's targeting technology for banners creates relevance and engagement. Our user-base is already targeted. If one wants to focus on a genre, age, category or gender, we offer many opportunities to do so and our sales representatives work closely with clients to create a targeted campaign that best meets their needs. FilmTies.com offers the following IAB standard ad units:
120x240 or 120x600 above fold: $10.00 CPM (ROS)
125x125 above fold: $5.50 CPM (ROS)
728x90 or 468x60 above fold: $11.00 CPM (ROS)
For more advanced targeting of individuals on FilmTies.com, we offer the following options:
*Example: 125x125 above fold ad unittargeting male actors in New York who watch The Simpsons = $5.50 $2 $2 $5 = $14.50 CPM.
Local Target Sponsorships
FilmTies.com provides the opportunity for local advertisers to use existing advertising budgets to fund films. The local advertiser uses money he/she is already budgeting into expenses and, in turn, gets a targeted, highly effective media buy with FilmTies.com.in essence the local sponsor is able to give back to both themselves and the local community through the media buys. The local advertising dollars are invested back into the community to finance local filmmakers providing work for film crews, musicians, artist, actors and the people that supply products for the film. Local Sponsorships are provided through Stepping Stone Productions. These are productions whose budgets are $5000 - $100,000.
FilmTies.com brings the film production and development process out into the open and encourages interaction with our members. A project in development receives an interactive webpage with 20 tasks, ranging from pre-production to distribution, of film development. This provides a loyal dedicated fan base with a real-time, ongoing focus group. Advertisers are able to deliver targeted contextual messages to FilmTies.com members as they participate in the interactive film development. Advertisers gain both reach and frequency as they deliver their message to members who will have a real reason to return on a regular basis.
Sponsors also receive Honorary Producer credit in the film and on the DVD.
Interactive sponsorships can be purchased from $250 - $5000
Additional Benefits of Local and Group Target Sponsorships
User-created Groups on FilmTies.com enable our members to express themselves by joining discussions with other members of the Group and by posting the Group name on their user profile. Sponsored Groups extend FilmTies.com's Group feature to marketers. Sponsored Groups enable marketers to be part of the conversation, providing:
Intentional peer-to-peer representation for brand on user profiles
Direct interaction with specific films including genre and categories
Monthly product and brand messaging to Group members
Testing and discussion for new products and promotions
Control over look-and-feel and content of the Group
High Schools and College Contest Sponsorships
Sponsorships for the High Schools and College contest fall under the local target sponsorships because sponsors have the ability to advertise on their local schools' Web pages. A full working FilmTies.com interactive website will be created for each participating High School and College. These interactions provide students with the ability to showcase their talents during the four phases of filmmaking: Pre-production, production, post production and distribution, while sponsors have the ability to reach out to an even more targeted audience.
The High School program is being implemented on the week of February 19 with the goal of attracting 1000 participating schools. The schools will create a short 15 minute film and be judged in completion against other schools in state and in National contest.
Sponsorships of the high school contests consists of getting a 300*250 ad placed both in the group section of the school which is considered the home base of the project and in a 20 task interaction of the project.
The school received 50% of the revenue generated from the local sponsorships after all commissions are paid. Costs are $250 - $1000 for a sponsorship.
Film, Actor, Artist & Music Profile Sponsorships
Members of the FilmTies.com community are also members of other, more localized networks. Advertisers and sponsors can target member networks by purchasing local sponsorships while members are voting on the various projects. Local sponsorships receive a 486x60 banner on the film or music profile.
Local sponsors can also receive a credit in the feature film. If the sponsorship wins the contest or is chosen to go into production, the sponsor would receive an Associate Producer credit in the film.
Film, Actors, Artist & Music Profile Sponsorship = $150 per month.
Contest Sponsorships
The FilmTies.com contests provide our members with the opportunity to enter into film development. The contest is FREE for all members of the site. Once they enter the competition, individuals vote on projects and get results instantly. The votes are tracked and reports are available in real-time.
A contest can be for a specific genre of film, music category, state or city or can be specific to any sponsorship target audience. The contest sponsorship can also be continued to film sponsorship. This way a sponsor can attract a target audience to participate in the contest and then sponsor the wining project.
A contest sponsor receives an advertisement placed on the contest tally page along with a mention underneath the voting area for continued branding. Our goal is to allow our contest to be stepping stones to your success. FilmTies.com is set up to help its members
Our members are never charged and all of our contests are FREE. Businesses can participate with this effective form of advertising.
Newsletter
The FilmTies.com newsletter goes out to all the members twice a month to all of our members.
Cost of advertising starts at $150.00.
Competitive Landscape
Because FilmTies.com falls within a niche product category and will be new to the market there is no historical data available for similar or same products. However, since the online networking is highly correlated and because the service and technology surrounding the FilmTies.com originates from each of these industries, AdFilmTies Inc. Has chosen various companies as benchmarks to analyze the future opportunity. For the purposes of this exercise, AdFilmTies Inc. Will refer to the existing product/services within these segments collectively as social networking sites. Please note that there are literally hundreds of social networking sites, however the ones listed below represent either the largest ones that fit into our industry, or smaller ones that somewhat resemble our market.
YouTube
Founded in February YouTube was created as a consumer media company for people to watch independent videos worldwide. YouTube is the Internet's main portal for engaging in new ways with video sharing, including commenting. YouTube originally started as a personal video sharing service, and has grown into an entertainment destination with people watching more than 70 million videos on the site daily. YouTube was recently sold for $1.6 billion.
YouTube Features
Upload, tag and share videos worldwide
Browse millions of original videos uploaded by community members
Find, join and create video groups to connect with people who have similar interests
Customize the experience by subscribing to member videos, saving favorites, and creating playlists
Integrate YouTube videos on websites using video embeds or APIs
Make videos public or private - users can elect to broadcast their videos publicly or share them privately with friends and family upon upload
Everything is free
For a more compressive view of YouTube, see www.youtube.com.
MySpace
MySpace is a social networking website offering an interactive, user-submitted network of friends, personal profiles, blogs, groups, photos, music and videos. MySpace also features an internal search engine and an internal e-mail system. It is headquartered in Santa Monica, California, while its parent company is headquartered in New York City. According to Alexa Internet, it is currently the world's sixth most popular English-language website, the sixth most popular website in any language, and the third most popular website in the United States, though it has topped the chart on various weeks. There is currently more than 140 million subscribers, and was purchased in July for $580 million.
For a more comprehensive view of MySpace, see www.myspace.com.
Facebook
Facebook is an English-language social networking website that is popular among college students. It was originally developed for university students, faculty and staff, but has since expanded to include general population, including high school, corporate and geographic communities. As of December the website had the largest number of registered users among college-focused sites, approximately 12 million.
The site is free to users and generates revenue from advertising, including banner ads and sponsored groups (in April revenue was rumored to be over $1 million per week.
For a more comprehensive view of Facebook, see www.facebook.com.
Mugshot
Mugshot is a community software system created by Red Hat. Unlike social networking websites, it also has a desktop client component. It is meant to facilitate real-world interactions with friends, and make one's normal computer use more social. Current features include Web Swarm' which lets users share web links and join in conversations about them, and Music Radar, which displays which songs a user is listening to, and allows conversations about the song. Many features are planned, including the TV Party'.
Mugshot is free software. Most f the client code is distributed under the terms of the GNU General Public License (GPL). Various parts of the server code are distributed under the GPL, such as the Open Software, Apache License and the MIT License, all for which are free software licenses.
For a more comprehensive view of Mugshot, see www.mugshot.org.
Bolt.com
Bolt.com, as it is today, was originally known as Boltfolio, a Bolt Media property launched in late 2005. Touted as the leader of the cult of creativity, Boltfolio intended to provide a one-stop shop for creative users to upload their own photos, videos, and music, as well as write blogs or record directly from a webcam. The original aim was to provide a simple set of tools that would attract users of like-minded creative sites such as YouTube, Flickr and DevianArt. They currently boast 4 million members.
For a more comprehensive view of bolt.com, see www.bolt.com.
Competitive landscape conclusions
Based on analyzing the largest social networking sites as well as additional smaller ones, along with the most recent independent research, AdFilmTies Inc. Has concluded the following:
? The overall American market for social networking is estimated to be in excess of $15 billion annually.
? Based on public information, YouTube, Myspace and others plan to grow the digital aspects of their sites, including photo and music, or enhance their existing product lines.
? After reviewing the product capabilities and infrastructure of Internet social networking, the Company believes that AdFilmTies Inc. Product, service and delivery mediums are far superior.
? The distribution and the end-result-product for each of these companies differ tremendously in that AdFilmTies Inc. Is proposing to deliver its end product through entirely new, yet similar technology.
? AdFilmTies Inc. Has concluded that there is no clear movie social networking company or website leader, other than us, in the United States.
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Three-year plan
AdFilmTies Inc., together with its professional advisory team and business affiliates, have outlined a three-year business plan. AdFilmTies Inc. Will implement its business plan through a four-phase strategy. Upon implementation of this strategy, the Company will demonstrate that it is a successful private equity investment, with sustainable earnings growth, a seasoned management team, and a viable exit strategy for its investors.
The main objectives of the three-year plan and the four-phase strategy are outlined below.
Main objectives
? Raise $10 million through a private equity offering to launch and expand operations.
? Build a fully functional and interactive Website.
? Become the leading Internet forum for film and cinematography social networking.
? Ensure that a strategic marketing plan and pricing plan is implemented to create public awareness and residual business for AdFilmTies Inc.
? Build strong partnerships with manufacturers, distributors, maintenance teams, and recreational areas while at the same time maximize costs and best practices.
? Exceed 1 million members for our website by the end of the first year of operations.
? Hire an additional management team to expand the day-to-day operations and grow AdFilmTies Inc.into a strong participant in Internet social networking marketplace.
? Implement and maintain business plan to set up a viable exit strategy for all investors.
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Phase 1
In Phase 1, AdFilmTies Inc. Will primarily focus on meeting six major goals:
? Establish Company
? Identify market for AdFilmTies Inc.
? Develop Company Business Plan
? Develop Marketing Campaign
? Solidify working relationship with Web developer
? Partner with three national ad agencies for inventory
? Arrange relationship with State of California
? Bring 20 stepping stone projects into development
? Create and beta test website FilmTies.com
? Sign contracts for six feature films
? Develop relationships with distributors
? Gain recognition in internet ad publications
? Arrange partnerships with solid film producers
? Lay groundwork for Phase 2
? Completion date January
Company Establishment
AdFilmTies Inc. Is wholly owned by John De Titta.
*AdFilmTies Inc. Is proud to announce that Phase 1 is complete.
Phase 1 is Complete
Phase 2
In Phase 2, the most aggressive portion of the Company's three year strategy, AdFilmTies Inc. Will primarily focus on meeting six major goals:
? Raise $10 million through Series A private equity offering
? Hire additional management team
? Implement Marketing Campaign
? Reach our target markets Sign 1 million new members
? Lay groundwork for Phase 3
? Completion date January
Series A
During Phase 2, and following the successful development of the Business and Marketing plans, AdFilmTies Inc will look to raise capital to expand operations. A private equity offering of $10 million will, with full force, facilitate the Company's maneuvering into our market. Although we will be able to develop the marketing campaign, and website without the Series A, the monies raised would enhance our chances of streamlining any competition. A first mover advantage is one of the cornerstones of the Company. AdFilmTies Inc has already identified numerous individuals, including angel investors, as well as companies that help raise capital, to aid in the potential raising of the Series A.
Management Team
Initially, the Company will consist of several full-time employees, and several contracted representatives to help in the website and advertising aspects of the business. As time moves on, the Company will continuously reevaluate the number of employees needed. Specifically, we will employ those that can help us reach our target market. See below.
Implementation of Marketing Campaign - Website
In Phase 2, following the successful Series A round of funding, AdFilmTies Inc. Will implement its Marketing Campaign. Dialogues that had been opened in Phase 1 with advertising and marketing agencies will have been solidified. Additionally, relationships with our web development team will have been set as well, which will lead us into our marketing and Website marketing campaign.
In order for AdFilmTies to be effective long term with retaining visitors, a positive impression must be established for the user. While content surfing will provide initial visitors to the site we have developed a program within the site that will keep them coming back. What follows is a list of AdFilmTies marketing strategies.
Filmties.com Background
The AdFilmTies Inc. Online community is currently compromised of our social networking community, www.FilmTies.com. Our Website will promote the following information.
As noted, FilmTies.com is the world's first membership based, Social Network Interactive Film Financing Community. We provide the complete interactive tools to our members who visit the site to socialize, meet friends, classmates, and interact with the film and music industries. FilmTies.com, as part of the AdFilmTies Film Finance Model, empowers screenwriters, musicians, artist, actors, directors, producers, sponsors and, most importantly, the movie watching public.
FilmTies.com is a celebration of ideas, dreams and visions. FilmTies.com launched with our screenplay and music competitions that bring concepts to our members who vote to decide the winners.By tapping into the 12 billion dollar a year Internet advertising industry, it is the goal of FilmTies.com through the AdFilmTies Patent Pending Film Finance Model, to fund $100,000, 000 in independent film productions over the next three years.
The AdFilmTies Film Financing Model was conceived by forming a successful cooperative of advertisers, artists and audience. Today, FilmTies.com is proud to provide both an opportunity and the necessary funding to dedicated artists, writers and composers hoping to find a large audience and financing for their inspiring works.
Website Features
The Company's website is hosted on Linux with the ability to handle over 1 million hits per day. The site has a My SQL database that allows the users to search nationally and locally for relevant information. The website has the ability to host streaming video, message boards, java script and be both in PHP and HTML Format.
FilmTies.com Website is the home page and brand for the program. The website is a simple and well designed. The site will also stay current with the latest trends and provides information to the customers and act as a portal for our programs and products.
Website Marketing Strategy
The impressions generated by the consumer are the key to the foundation of the Company. One of our goals via the website is to generate 25 million monthly page views and 100,000 members by April 1.
The initial marketing campaign will be done through Press Releases of the www.FilmTies.com website. Press will be generated to national and local newspapers, publications, television and radio. The campaign will consist of promoting the AdFilmTies Film Financing Model and the www.FilmTies.com high school and college programs, It is the minimum goal of these press releases to obtain a consistent userbase of 250,000 monthly visitors who will create 1 million impressions per month.
The second phase of marketing during the initial 90 days as described in this business plan will consist with forming strategic alliances with existing websites who have substantial traffic/impressions.
Additional Marketing Methods
While AdFilmTies Inc.'s initial focus is on the internet industry through adfilmties.com, the AdFilmTies Film Finance model will be expanded to Radio, Television, Newspapers, Publications, and Yellow Page placements.in face to face comparison, an advertiser with a line item budget can analyze an AdFilmTies Media buy with all the additional advantages of our film production model versus a customary media buy. Our slogan, it will be understood, will be clear: Why just Advertise when you can AdFilmTies?
In order for AdFilmTies to be effective long term with retaining visitors, a stickiness must be established for the user. While content surfing will provide initial visitors to the site we have developed a program within the site that will keep them coming back.
College Short Film Contest
FilmTies.com has a program for students. The first annual FilmTies.com College Creative Showcase begins now. FilmTies.com will be accepting schools for participation through April 1. Here is how it works:
Film Program
A full working FilmTies.com interactive website will be created for each participating College. The Interaction provides students with the ability to showcase their talents during the four phases of filmmaking: Pre-Production, Production, Post Production and Distribution. Each participating school will have the ability to create a short film, no more then 15 minutes in length, and have the world wide community of FilmTies.com assist in the decision making from the task of screenwriting to choosing actors, and locations on top of many other tasks.
School will be competing against schools across the country in this fun, student body building, and educational experience. Students will learn important skills which will help build their resume for future work in these fields. The winning school will receive a party with Producers, Celebrities and $5,000 worth of equipment.
All finished films will receive Video on Demand Distribution, which will be free to the school and Pay per View to the rest of the community with a portion of the funds being donated back to the school. It is free to participate. We will get the student body of the school involved in the voting of projects.
Reach our Target Markets
During Phase 2 (Phase 3) AdfilmTies Inc. Will attempt to reach its target market of 1 million members.
Phase 2 Keys to Success
? Raise $10 million through a Series A private round of funding
? Build fully interactive website
? Implement the Marketing Campaign
? Attract and retain competent management team, while effectively manage growth
? Effectively target all possible sales channels
? Lay groundwork for expansion initiatives
? Keep all costs to a minimum while building core competencies
? Prepare for in Phase 3
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Phase 3
In Phase 3, AdFilmTies Inc. Will primarily focus on meeting five major goals:
Adjust, if need be, the Marketing Campaign
Expand exponentially
Build infrastructure to maintain growth
Generate $50mm in revenue
Lay groundwork for Phase 4
Marketing Campaign
Although AdFilmTies Inc. Will continuously review its marketing campaign, in Phase 3 the company may employ additional sources, including outsourcing, to evaluate Company positioning. This is meant to ensure that all targets of our market our reached, while maintaining our cash flow.
Expansion
Following the successful launching of our service as well as it positively being received, the Company will look to expand its operations. If need be, AdFilmTies Inc. May seek additional private investment. Although the Company does not foresee this transpiring, we will keep all options open in order to maintain our edge. During Phase 3, the Company will decide the appropriate actions to be undertaken in regards to further development as well as raising additional capital for that expansion if need be.
Phase 3 Keys to Success
? Review Marketing Campaign and potentially have outside review
? Maintain and expand Marketing Campaign
? Successfully maintain working relationships
? Keep all costs to a minimum while maintaining core competencies
? Begin paying out Dividends to Members
? Prepare for Phase 4's Exit Strategy
Phase 4
Since AdFilmTies Inc. Will focus on one major product, the Company will have the ability to position itself in numerous strategic ways to create a viable exit strategy for its shareholders. At the appropriate time, the Company will assign a feasible valuation to the Company and its core product and then build a framework to successfully reimburse its current shareholders. Therefore, AdFilmTies Inc. Will grow its business with an objective to implement one of the following exit strategies.
Exit Strategy # 1 Strategic Sell
In view of the fact that AdFilmTies Inc. Will generate between $10100 million in revenues and will maintain high profit margins, the Company believes that it will be a perfect complement to existing product lines of the major players in the Internet social network market, such as Google and even Myspace. This will make AdFilmTies Inc. An attractive buy out opportunity for larger corporations as our products can add to their bottom lines.
Also, because they will primarily be buying AdFilmTies Inc.'s technology and concept, it will be a strong match as they already have the technology, maintenance, and marketing capabilities set up to continue the longevity of filmties.com.
Enhance Valuations and Buyout Opportunities
AdFilmTies Inc. Has identified the six attributes it will achieve in order to make us a more lucrative acquisition or buy out.
Steady and dependable growth rate
AdFilmTies Inc. Will adopt an on-demand pricing model that will continuously generate revenues in the coming years.
Platform for Future Growth
AdFilmTies Inc. May grow faster if the company had more cash reserves, which a larger company, along with greater marketing and distribution channels, would be able to provide.
Diversity of Growth and Opportunity
Since AdFilmTies Inc. Is a niche product in a niche market, we believe demand and opportunity exists for both our service and for revenues, making us a strong buyout for larger companies.
Profitability
AdFilmTies Inc. Will be able to generate significant revenue and profit.
History of innovation and owned Intellectual Property (IP)
IP has taken on more importance in the past few years as companies have bought others just for access to the patents, intellectual capital, or both AdFilmTies Inc. Proprietary patent-pending technology is both unique and legally sound.
The Internet and high tech and mergers and acquisition market will remain consistently strong over the forthcoming years. However, if the company is not bought out, there are other avenues that AdFilmTies Inc. Will undertake to cash out investors.
Exit Strategy # 2 Partnership
In the U.S. Market place it is common practice for small companies to build strategic partnerships with larger ones who may have greater distribution or marketing capabilities and access to markets. AdFilmTies Inc. Believes that this type of model can be successful. This would also alleviate most of the day-to-day activities of the current management team.
Exit Strategy # 3 Walking Harvest
When applicable, V Chat Live will distribute cash directly to its investors on a predetermined basis.
Exit Strategy # 4 Partial Sale
Shareholder will sell their stake to V Chat Live directly, another shareholder, or an outsider.
Exit Strategy # 5 Initial Public Offering (IPO)
Theoretically, in case the Company either fails in securing the needed funding through a Series A private equity offering, or does not have enough capital from its previous endeavors to support expansion, or the Company fails in selling the remaining assets, we would consider an Initial Public Offering to cash out our Shareholders. Although IPO, at least for fiscal year seem more plausible for numerous companies, AdFilmTies Inc. Maintains that we will be bought out.
All in all, AdFilmTies Inc. Will stay committed to profitably cashing out shareholders through numerous options.in doing so, the Company will attempt to develop a strong dialogue with similar companies looking to grow through acquisition or partnership. AdFilmTies Inc. Has already identified numerous companies that have consistently grown through various acquisitions or equity investments.
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Appendix A
Sales Campaign & Employment Positions
AdFilmTies Inc is partially a sales and marketing company, therefore we rely on creative print materials and solid salespeople. Our initial goal is to build the sales force and create media attention for our project. Below are our initial sales objectives:
Hire a National Sales Manager.
The function of the National Sales Manager will be to develop a sales staff that can market our sponsorship programs locally and nationally.
Create Sales Materials for National Advertising.
Our AdFilmTies model should be presented to all major pharmaceutical companies during our initial content launch.
Create Ad Agency Materials.
A consistent source of ad placements will be agencies. The company needs to create marketing materials that will be presented to key agencies in the NYC area.
Promote the project through national and local television, radio, newspaper and other media outlets.
The PR campaign is significant to the sales process, the announcement of the program has to come first followed by sponsorships. It provides strong credibility to the local and national salesperson.
Create Sales Materials for Local Advertising.
Local advertising is instant payment, while also being the largest market share of our program. The company will create easy to understand marketing materials that will be distributed through mail and salesperson delivery.
Hire Salespeople.
By and through our National Sales Manager, a sales force will be established state by state. It is with this sales force that our local sales will be built. The sales force will be heavily incentive commission based salespeople. That will be trained by our sales manager.
Appendix B
Executive Management
A strong, experienced executive who will report to a Board of Directors will lead the organization. Additionally, three officers (CFO, CTO, and VP Sales & Marketing) will report to the President. This executive team will work closely to ensure a smooth start-up of AdFilmTies. Most of these key positions should be filled by May 1st.
Key Senior Management Positions
AdFilmTies senior management positions will be filled with people possessing a mixture of film production, advertising and e-Commerce experience. The ability to make quick decisions and a strong desire to work in a team-oriented environment are critical traits for all positions. The specifics for each of the senior management positions are as follows:
Harold Levy President
Harold Joins AdFilmTies Inc, as a senior executive with over 30 years experience growing revenues and profits for major multinational organizations. He was CEO of $100 million division responsible for integrating numerous acquisitions, and is specialist in turn around situations and start-ups. Mr. Levy has a proven ability to launch new products and services. Results oriented and dashboard focused with vision and unsurpassed leadership qualities.
Harold was instrumental in the start-up Monster.com he was responsible for over 50 offices and 1500 employees globally in matrix management structure. During his time at Monster.com he Formulated and communicated vision and strategy for $200 million (revenue) Division. He sat on Monster Worldwide Executive Committee and reported into Office of the Chairman. Harold also was the VP of Marketing and Advertising for Toys R Us
Richard Kronisberg
Mr. Kronisberg will act as CFO (we are currently seeking a seasoned CFO) for AdFilmTies Inc. He has built many film companies including MIRIMAX, later sold to DISNEY. He operates a respected CPA by the name of Spielman, Koenigsberg and Parker LLP. He will be responsible for working with the President and key executives within AdFilmTies to support the enterprise. He will determine funding needs and develop a financial infrastructure. This will include managing the due diligence process and analyzing the financial implications of deal structuring with key partners, which is eventually expected to lead to a future public offering. The CFO will also be responsible for financial analysis and reporting to senior management and all stakeholders (partners, investors, etc.).in addition, he/she will support the enterprise by managing HR and Legal functions.
Chief Technology Officer (CTO)
From a technical perspective, the CTO is responsible for ensuring that AdFilmTies has the appropriate mechanisms to deliver value without mishap to all participating stakeholders. Reporting to the Vice President of Sales the CTO will have responsibility for the technology infrastructure necessary to support AdFilmTies operations. This includes managing relationships with external technology providers, ensuring the technology infrastructure needed to support website performance is in place, and ensuring that back-office technology infrastructure (applications and computing capability) is appropriately scaled.in addition, the CTO, along with the management team, will oversee the development and implementation of any enhancements made to the website.
AdFilmTies is currently aggressively searching for a qualified candidate to fill this position. This individual should have the following characteristics:
Broad experience developing high-performance. Scaleable Internet technology
Experience managing outsource service arrangements, including outside consultants, computer hardware service providers, and applications software service providers
Thorough understanding of business applications and their integration into business processes
Experience with start-up or fast growing organizations
Chief Financial Officer (CFO)
The Chief Financial Officer (to be filled) of AdFilmTies Inc. Will primarily be responsible for managing the financials of the Company. This executive is also responsible for financial planning and record-keeping. Moreover, the CFO will also encompass communicating financial performance and forecasts to the analyst community. The CFO will periodically report to the Chief Executive Officer, and will be a frequent member of the Board of Directors.
Currently, AdFilmTimes is negotiations with several experienced top level CFOs who will be disclosed to all prospective investors.
FilmTies Studios
Albie Hecht Producer
Mr. Hecht is one of the most respected producers in the industry for both Film and Television. Having served as President of the largest Cable network NICKELODEON, he developed several cartoon animation programs that were successfully launched into film. Some of these films included Sponge Bob Square Pants, Rugrats, The Wild Thornburgs, Jimmy Neutron, Snow Day, and Lemony Snickets A Series of Unfortunate Events, which grossed to date over $200,000, 000.00
Albie will work closely with AdFilmTies's Board of Directors on the development and rollout of the business. The President, along with the management team, will manage and lead the enterprise by setting the overall direction of the company. This position will be on an advisory role for the initial 90 day phase and then have the ability to be more involved in the development of the appropriate alliances and strategic structuring of relationships required to execute the company's plans. The President will also be responsible for providing input on the right management team in place to manage the fast pace of growth expected for AdFilmTies. The President should possess the following attributes:
Barbary De Fina Producer
Ms. Barbara De Fina will oversee Manic Ride Productions. Ms.De Fina has over 30 years experience in the film industry, producing such blockbuster films as Goodfellas, Casino, Raging Bull, King of Comedy, and Cape Fear. Ms.De Fina is considered one of the most respected producers in the film industry. She will also serve on the Board of AdFilmTies Inc, and the Film Advisory Board.
FOR IMMEDIATE RELEASE
FilmTies.com Launches New Revolution in Film Financing
FilmTies.com moves out of beta testing with complete website redesign
New York, NY - January 3- FilmTies.com today announced the launch of the world's first online interactive membership based, social networking community that provides funding for film projects. FilmTies.com is a Web site that allows networking and project collaboration for filmmakers, screen writers, directors, producers, crew members, musicians and artists. FilmTies.com finances these projects through revenue from local and national ad sales. The goal of FilmTies.com, by and through the AdFILMTies Patent Pending Film Finance model, is to distribute $100,000, 000 in funding for independent film productions over the next three years.
Movies are my passion and for many years I've dreamed of having my screen play brought to life. FilmTies.com has made available the resources essential to the success of my movie when no one else was willing to do so, stated Ryan Cavalline - 4th Floor Pictures Besides that, FilmTies.com provided an environment that allowed us to become well acquainted with all individuals involved in our project which assured that everyone had the same passion for this project as I.
After founder John DeTitta witnessed the same trials that most amateur writers encounter, he began researching alternative resources and sought the advice of his peers. After doing so, he realized the potential of providing advertisers with the means to both reach their target audience and sponsor independent films using advertising dollars already figured into budget.in order to do so, he needed a media outlet that would allow for the impressions advertisers sought. FilmTies.com launched with a beta group in October. The beta group provided valuable feedback allowing FilmTies.com creators to build an attractive, user-friendly site, complete with the features most important to their target audience.
FilmTies.com is celebrating its launch with a contest for both high schools and colleges throughout the United States. The contest will provide students with the opportunity to not only raise money for their school but to also build their resumes and gain national recognition.in addition, FilmTies.com is working to provide other means to fund projects so that the number of projects chosen for funding each month can increase. To date, necessary steps are underway to create a film commission in every state throughout the U.S.
It is our goal to provide a social outlet for those we know have the passion and talent to be successful, but may not have the same means and connections necessary to get their projects off the ground, stated John DeTitta, founder and president of FilmTies.com. Too many talented individuals do not have the chance to tell their story to the world. Therefore, we have made it our top priority to give everyone with a story to tell the ability to tell it.
About FilmTies.com
FilmTies.com is the world's first membership based, social network interactive film financing community that has combined the creative fruitfulness of independent filmmaking with the financial productiveness of internet advertising. FilmTies.com is part of the AdFILMTies Film Finance Model that empowers screenwriters, musicians, artist, actors, directors, producers, sponsors and the movie watching public. For more information, visit www.filmties.com
Filmtimes.com Additional News Coverage
FilmTies.com Launches New Revolution in Film Financing
http://www.indyfilmco-op.org/index.php? Ind=news&op=news_show_single&ide=1861
FilmTies.com Launches New Revolution in Film Financing
http://66.218.69.11/search/cache? Ei=UTF-8&p=FilmTies.com and Launches&fr=sfp&u =www.independentcinema.net/&w=filmties.com launches&d=Rekk9UVuOEQi&icp=1&.intl=us
ADOTAS
New Film Industry Site Promises Financing through Social Networking
http://www.adotas.com/01/new-film-industry-site-promises-financing-through-social-networking/
FilmTies.com Launches New Revolution in Film Financing
http://209.85.165.104/search? Q=cache: vqpSVsdq63kJ: www.icon-magazine.com/content/view/1634/124/ FilmTies.com and Launch&hl=en&gl=us&ct=clnk&cd=9
FilmTies.com Launches new revolution in Film Financing
http://cyberscreenwriter.com/blog_c/01/14/p280
FilmTies.com Launches New Revolution in Film Financing
http://news. Yahoo.com/s/prweb0103/bs_prweb/prweb494617_1 FilmTies.com Launches New Revolution in Film Financing http://www.thealphamarketer.com/PressReleases/release14507.php
FilmTies.com Launches New Revolution in Film Financing http://64.233.161.104/search? Q=cache: hsqi1qxWHJgJ: www.business.com/directory/financial_services/commercial_finance/credit/potential_finance_group_plc/profile / FilmTies.com and Launch&hl=en&gl=us&ct=clnk&cd=17
New Social Network Promises Film Finance
http://newnimproved. Blogspot.com/
FilmTies. ComLaunches New Revolution in Film Financing
http://www.prnewsnow.com/PR News Releases/Art And Entertainment/FilmTies.com Launches New Revolution in Film Financing
FilmTies.com Launches New Revolution in Film Financing
http://www.topix.net/content/prweb/2215121979050199108300779002332522443079
FilmTies.com Launches New Revolution in Film Financing
http://www.businessblogwire.com/PressReleases/release14507.php
FilmTies.com Launches New Revolution in Film Financing
http://64.233.161.104/search? Q=cache: 64QRS3nYeaQJ: www.newscuts.com/press_releases/web_sites_internet. Shtml FilmTies.com and Launch&hl=en&gl=us&ct=clnk&cd=12
FilmTies.com Launches New Revolution in Film Financing http://www.emediawire.com/releases/1/emw494617.htm
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Appendix C - Financials
AdFilmTies Inc.
Forecast to 2009 (3 year model)
Internal Financials Only
Income Statement
2007 - 2009
Economics US$ (Rounded Off)
Revenues 200,000, 000
Results
Revenue
Gross revenues 200,000, 000
Gross revenues total 200,000, 000
Expenses
Operating costs 95,000, 000
Additional costs 1,000, 000
Total expenses 96,000, 000
Operating income before taxes 104,000, 000
Margins
Gross margins 192%
Net income per share 192%
AdFilmTies Inc.
Forecast to 2009 (3 year model)
Internal Financials Only
Balance Sheet
2007 - 2009
US$ (Rounded Off)
ASSETS
Accounts receivable 14,900, 000
Other assets 10,800, 000
Fixed assets 10,800, 000
Less: acc. Depreciation 460,000
Cash 200,000, 000
Total Assets 235,000, 000
Liabilities 14,000, 000
EQUITY
Common stock 200,000, 000
Net Income 104,000, 000
Total Equity (Deficit) 96,000, 000
Total Liabilities & Equity 235,000, 000
AdFilmTies Inc.
Forecast to 2009 (3 year model)
Internal Financials Only
Statement of Cash Flows
2007 2009
US$ (Rounded Off)
Cash Flow from Operations 245,00, 000
Net Income 104,000, 000
depreciation 460,000
? Accounts receivable 14,900, 000
Total cash flow from operations 125,640, 000
Cash Flow from Investing
Capital expenditures 96,000, 000
Total cash flow from investing (245,000, 000)
Cash Flow from Financing
Proceeds from sale of stock 10,000, 000
Total cash flow from financing 10,000, 000
Net cash flow at end of 2009 104,000, 000
Investment opportunity
AdFilmTies Inc. Is selling a 20% equity stake in the Company for $10,000, 000. The equity offering (Units) will be distributed through, but is not limited to, a Series A round of funding.
Series A: $10,000, 000.00
The purchase terms to the investor are as follows:
membership % total purchase price % equity
20% $10,000, 000 20%
15% $7,500, 000 15%
10% $5,000, 000 10%
5.0% $2,500, 000 5.0%
1.0% $500,000 1.0%
Minimum purchase is a 1% membership interest for $500,000.
Proceeding from the sales of Units will be disbursed in the following order
Repay all loans (if there are any).
Pay all costs of sales and marketing.
Maintain a working capital account.
Pay out all initial investments.
Distribution of net proceeds to all members.
By the end of the investment period, the Company will meet all goals of a successful private equity investment, including sustainable growth, a seasoned management team, and a viable exit strategy.
Projection return
Dividends will be paid out quarterly, or even monthly, following the first twelve months of operations.
Based on 1,000, 000 Outstanding Units
Based on 200,000 Units Purchased at $10,000, 000
Projected Profit to be Distributed Over 3 Years US$
Total 104,000, 000
For 200,000 Units (10mm) 20,800, 000
For 100,000 Units (5mm) 10,400, 000
For 50,000 Units (2.5mm) 5,700, 000
For 25,000 Units (1.75mm) 2,850, 000
For 12,500 Units (875k) 1,425, 000
For 1,250 Units (87.5k) 142,500
Annualized Return for 3 Years 25.2%
.
Monthly Return on Investment Over 3 Years US$
For 200,000 Units 577,777
For 100,000 Units 288,888
For 50,000 Units 158,333
For 25,000 Units 79,166
For 12,500 Units 39,583
For 1,250 Units 3,958
—Within the first 12 months of operations, AdFilmTies Inc. Anticipates paying out dividends.
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