SMContact spendLO:Corey Leff, Founder & CEOCorey@spendLO.com(561) 894-8976

What is spendLO?SpendLO is an online marketplace where consumers name their price on local services and are matched with certified professionals who compete to earn their business. Think Priceline meets Angie's List.

QUICK BITESFounded: 05.23.2011

Public Beta Launch: 06.08.2012

Official Launch: June 2013

Industry: e-Commerce

Sub-Industry: Consumer Services

Stage: Generating Revenue

Employees: 4

www.spendLO.com

LEADERSHIP

Corey LeffFounder & CEOFounded early cloud storage startup Document Nation in 2004

Kristin DelaneyManaging PartnerFormer Sales Vice President,MetLife Investors

Elise HahnMarketing DirectorFormer Project Manager to several of Internet Retailer’s Top 500

ADVISORY

Ari SteinbergEarly Facebook software engineer and the creator of Facebook’s News Feed and platform

Alex EnchinCo-founder of daily deal company Wag Jag, sold to TorStar Corporation in 2010

David LeVineCEO of early ERP provider Advent Business Systems, sold to U.S. Bank in 2005

Consumer ChallengeIt is difficult to find and hire the right service professional. The existing landscape lacks a solution that simultaneously offers user-driven pricing and peer reviews, results in time savings, maintains the user’s privacy and requires service provider certification.

Service Professional ChallengeTraditional customer acquisition techniques such as purchasing leads and digital advertising space possess capital risk, often requiring a significant initial out of pocket investment. A 2011 Opus Research-MerchantCircle of 8,456 businesses found that paying a percentage of the sale is the most popular means of acquisition, as paying for customers rather than opportunities is a sustainable growth model for small businesses.

Business ModelSpendLO‘s business model addresses both of these challenges. Consumers and Pros may use the site for FREE. This includes: creating profiles, registering a business, advertisting To-Dos, bidding on To-Dos, reviewing Pros’ bids and credentials, and more. If a Consumer decides to move forward with a Pro, spendLO collects 10% of the accepted bid price.

How It WorksUsers visit our website (or mobile app starting in June), describe their “To-Do,” and name the price they’re willing to pay. We’ll alert our network of licensed and insured Pros who will compete for their business. SpendLO eliminates the stress of researching and hiring service providers, and saves our consumers time and money. Not only do our users get the best price while remaining safe and private – IT’S ALSO FREE!

STATISTICS TO DATE• 0.90 To-Dos posted per consumer

• $498.50 average cost per To-Do

SIMILAR COMPETITOR STATS:

• 50% of users post a 2nd To-Do within 30 days

• 50% of To-Dos are completed, generating full revenue

Revenue Projections

Mass Distribution & Customer AcquisitionSpendLO's distribution strategy is based on a recent success story. Advisory Board member Alex Enchin cultivated a successful partnership between Canadian daily-deal leader Wag Jag and the Toronto Star. The result, Wag Jag grew to 1.5M users within 18 months leading to the purchase of the company by parent company Torstar Corporation. SpendLO has agreed to a similar revenue sharing agreement with WPTV, a Scripps-owned NBC affiliate and Florida’s #1 television station. The relationship is predicated on full scale multi-media distribution through several local television and web properties, followed by replication and expansion into an additional 5 Scripps television markets nationwide.

An additional distribution arm will include Palm Beach County’s largest Real Estate company, Lang Realty. Lang’s 425+ agents will serve as an extension of the spendLO sales force, utilizing spendLO for property improvements and to introduce new residents to cost savings and business building opportunities. Lang also brings an extensive network of prequalified service professionals to the partnership.

SouthernCA 2.0mm

Houston975K

Detroit800K

DC/N Virginia

600K

Boston500K

Minneapolis500K

Northern CA

500K

Baltimore500K

Denver475K

S Florida425K

CentralJersey400K

Seattle350K

MetroNY

675K

Philly/S Jersey

700K

North Jersey904K Long

Island1.6mm

Atlanta300K

Phoenix300K

St. Louis250K

Chicago1.7mm

SLC200K

Dallas/Fort Worth

800K

FL Gulf Coast 175K

Indian-apolis 150K

Charlotte150K

OUR TECHNOLOGY

Forthcoming software deployment integrates a customer rewards program designed to incentivize users, promote virality, and enhance social engagement. Phased rollout scheduled between June 1, 2013 and June 30, 2013 also includes deployment of native iOS and Android mobile applications and a newly redesigned, fully responsive website.

spendLO PROs

SpendLO’s requirements include but are not limited to: Pros adhere to regulations stipulated by the state, county, and municipalities in which they transact business; Pros only bid on services for which they are expressly licensed to perform; Pros carry liability insurance in excess of $1 Million; and Pros carry worker’s compensation insurance.

THE LOCAL SERVICES VERTICALANGIE’S LIST

• Offers users access to consumer reviews on a monthly subscription basis

HOME ADVISOR

• Offers multiple quotes to consumers by selling leads to numerous vendors, who look to gain a return on their investment by relentlessly soliciting the prospective consumers

RED BEACON

• Solicits bids from local vendors in limited segments of the home service market, most closely resembles the spendLO model

Target Markets

Count of households where the following criteria are satified:• Median household income exceeds $60k• Owner occupancy rates exceed 70%• Households per sq. mile exceed 2k

Targeted Entry ServicesHome & Garden

• Roofing

• Windows

• Painting

• Bathroom Remodeling

• Kitchen Cabinets & Counters

• Landscaping

Cleaning & Cleanout

• Pressure Washing

• Carpet Cleaning

• Maid Services

Health & Beauty

• MediSpa Services

• Orthodontics

Professional Services

• Website Design

• Attorneys

• Property Managers

Moving & Transportation

• Pack & Move

• Auto Shipping