1) Fly Fan is launching a new e-commerce platform called BetterUs that connects groups of customers ("moderators") with retailers for trusted group buying. 2) BetterUs aims to address issues with existing group buying models like lack of trust in products and weak marketing support for retailers. Moderators will recommend products, market to their social networks, and recruit customer groups. 3) The model is inspired by successful Korean "mom bloggers" who lead group buying campaigns. Moderators, early customers and late customers will receive different discounts, creating a pyramid incentive structure.

1. FLY FANInnovate e-commerce through the social web Ji-Woong ‘Paul’ Chung CEO of Fly Fan

2. Welcome to one of the Largeste-commerce markets 6th largest ecommerce market 17B$ Volume double-digit annual growth (22~27% before the financial crisis) eBay’s outpost for Asian market expansion acquired at 382M$ (2001) Total M/S 87% acquired at 1.2B$ (2007)

3. The Most Dynamic & Innovative E-commerce Market Korea tops in broadband penetration 95% of homes mobile shopping Rich shopping experience Korean customer set the very high standards for customer service 24-hour retail One-day shipping

4. WHO IS FLY FAN? TEAM Founded by former members of Top three Korean Internet companies (NHN , NCSoft , Daum) six members total (two for executives , one designer , three engineers) Vision Innovate e-commerce through the social web What have we done? 1forME.net ( Asia’s Etsy ) Dealing a year’s worth of commerce 2.0 developement Today, we’ll present our second product for the first time at GOAP Seoul!

5. BetterUs : eBay for Group Buying “Matching group of retailers with groups of customers through a moderator” No More groupon clone. Not a coupon Business transaction for physical goods Buying is like a Blind Date

6. Problems Buyers Group buying is good. But, can I trust these products? I need trustworthy recommendation. TRUST This is weakness of Groupon too! Retailers Marketing is a issue Companies often need help creating viral marketing MARKETING Flexible selling make it difficult to lower distribution costs. FIXED AMOUNT SELLING WILL ANYONE TAKE CARE OF THESE PROBLEMS FOR ME?

7. The solution We’ve Found Learned One buyer (called the Moderator) takes a charge of each part of the group buying process. After buying, buyers rate the moderator. Helps buyers to choose the right product via recommendations. Helps retailers to find groups of customers quickly. Helps retailers with marketing using based on reputation. The Moderator’s Role Select from retailer’s offers (acts as a merchandiser) Facilitates exposure through their social media presence. (acts as a marketer) Recruits a group of customers (acts as a salesman) Learned from Korean Moms’ group buying patterns, a.k.a “ Group Buying Moderating by the Power Mom Blogger“

8. 1. Transaction List list of Deals Recommended by Moderator the Moderator’s Reputation limited time (flash sales) limited sales (fixed amount sales) the transaction is activated only if sales meet certain numbers

9. 2. Moderator chooses the Deal Moderator’s Blog Twitter & Facebook Recruit Early-Bird Group

11. Early Bird group

12. Late Comer grouplike a pyramid. 1) Moderator Free Product +Revenue Sharing 2) Early Bird Group Heavy Discount (e.g 30%) 3) Late Comer Group Basic Discount (e.g 20%) Additional Discount /w Referral Invitation

13. Market Size Household/living products for moms/parents (25 to 45 age range) total addressable market opportunity is 2B$ in Korea , 18B$ in U.S with20% annual growth rate emerging & untapped Markets low e-commerce penetration percentages so far (1~4%) market where “trusted group buying” works well.

14. Business Model transaction fee from retailers future potential #1 : advertising target ads about retailer’s other goods future potential #2 : subscriptions more discounts for a private group of paid members Adjustment Checkout retailer group of buyers BetterUs Shipping

15. Technology / Advantage Core technology rating the Moderator according to feedback from retailers & buyers rewarding buyers according to participation level We Developed a rating/rewarding algorithm based on various Korean online games & multi-level marketing campaigns. TEAM The team members have extensive backgrounds in blogosphere commerce We have strong connection with “Power Mom Bloggers” The Team knows what makes “Trusted Group Buying” tick…

16. Value to the Customer

17. Value to Retailers small retailer guaranteed fixed amount of sales mid to large retailer viral marketing channel feedback from early adopter Group company in product development

18. Road Map end of July 2010 4Q 2011 launch launch expand in Korea one of US city to global ( e.gL.A) ( Asian retailers ( global retailers and U.S Moderators) and Moderators )

19. Vision : Third Wave of Online Marketplace KOREA U.S BetterUs

20. Watch Us! “FLY FAN” An upcoming key player in commerce 2.0 innovation http://flyfan.net/global jwchung@flyfan.net Twitter @jwpchung