MegaChain.com
Rocket Fuel for the E-commerce Era
Business Plan
April 1999
Imagine for a moment, you have a fantastic new product you’re just positive hundreds of thousands of people would clamor to buy, if
they only knew about it. A national infomercial or direct mail campaign would be prohibitive; too much cost up front. If only there was a way to
tell ten friends and have them each tell ten friends and so on until everybody knew. After all, what are friends for? Once your product started
selling you’d be more than happy to send those that helped spread the word a little token of your appreciation. Now, if only there was a
form of communication that was instantaneous, electronic, used daily by millions of people and best of all, free. That’s the stuff that
dreams are made of.
There is no question that multi-level marketing (MLM) works. From Amway and Herbalife to the hundreds of other companies that have
successfully employed MLM to sell their products, dramatic increases in sales, territorial coverage and market share are undeniable. In fact,
many companies who use nothing more than MLM to market their products have been propelled into the DOW top 500 in record time. But until
now, none have enlisted one of the most powerful advertising tools the world has seen; the combination of MLM, email and the Internet.
The concept of MLM on the Internet is simple; use your customer base to exponentially expand your sales and sales force. The Internet is an
ideal, as yet untapped medium for this. Because of the exponential growth of email use among consumers and the heavy traffic generated by so
many Internet sites, an MLM program using an email medium holds tremendous potential for creating a large sales force which is paid a
commission only upon the completion of a transaction.
The MegaChain software suite provides the turnkey solution whereby any company can instantly turn their Internet presence into a powerful
MLM sales machine. From the time a product is offered, through the creation and launch of the marketing campaign, MegaChain manages the
entire cycle, capturing the results and recording the sales. The suite also includes an automated process for contacting potential sales agents,
continually building the sales force. Completing the suite, additional MegaChain software allows agents to securely view their email chain
[eChain], and the resulting commissions. Demand for a product such as this should provide MegaChain with huge revenues from royalties,
software sales and consulting and service contracts, ensuring excellent returns to the investor.
The MegaChain mission is to provide companies with a powerful, cost effective means of successfully advertising and selling their product
through MegaChain’s innovative Internet MLM system. MegaChain stands ready to capitalize on this great potential. With an effective
corporate plan for marketing its unique product and the right infrastructure to successfully implement it, we believe the MegaChain software
suite will quickly become a highly sought after sales tool and MegaChain a top ranked Internet E-commerce company. From a sales and
marketing perspective it is, in short, a dream come true.
Contact:
Tom Lavin
Web Site:
www.megachain.com
Address:
Blue Wave Management
Email:
tlavin@axionet.com
34 West 8th Avenue
Telephone:
(604) 873-3388
Vancouver, British Columbia
Canada, V5Y 1M7
Fax:
(604) 873-0674
MegaChain.com, Ltd.
Fact Sheet
April 19, 1999
Shares Issued: MegaChain.com currently has 16,154,000 shares outstanding.
Fully Diluted: 16,264,000 shares.
Major Shareholders: Of the total outstanding shares, the President and Vice President have 6,000,000 restricted
shares that have a one year hold period. They become free trading shares on February 17, 2000. The remaining
shares are in the hands of the public.
Options Outstanding: At the present time there are no options outstanding.
Warrants/Obligations: 110,000 Warrants @ .60 to April 8, 2000.
Working Capital: The company has approximately $1,000,000 working capital.
Debt: At the present time there is no appreciable debt.
Officers and Directors: At present they are as follows: Tom Lavin, President and CEO; William Lavin, Vice
President and Secretary-Treasurer; and Donald Steele, Director.
Exchange and Symbol: NASDAQ OTC BB – MGCN
CUSIP#: 58516A102
Incorporation Date: September 10, 1993, in the State of Delaware.
Authorized Capital: 20,000,000 @ .001 par value
Corporate Office: MegaChain.com, Ltd., 34 West 8th Avenue, Vancouver, British Columbia, Canada V5Y 1M7.
Telephone: 604 873-3388 Fax: 604 873-0674
The company advises that while every effort has been made to provide accurate corporate details, the information contained herein is
subject to change without notice.
INVESTOR INFORMATION
MegaChain.com
MegaChain.com, with its revolutionary approach to Internet E-commerce advertising, is an incredibly exciting
opportunity from the investor’s point of view. For well over a year Internet stocks have soared based on
forecasts of on-line retail sales experiencing exponential growth. If an investment of $10,000 was made in Yahoo,
as late as April of 1998, it would be worth over $80,000 today.
Yahoo’s revenues, both projected and to date, have come almost entirely from banner advertising. The
same can be said for the majority of high traffic web sites. Corporations with a web presence realize that
advertising is of paramount importance for building their own traffic and sales. As a result they are spending an
increasingly significant portion of their advertising dollar on web related activities.
As the effectiveness of banner ads diminishes, these corporations are actively searching for viable alternatives.
The MegaChain.com concept of proliferating incentive-driven email advertising via a chain of friends, relatives,
acquaintances and business associates, harnesses the power of ‘word of mouth’ advertising and
neatly circumvents the negative aspects of unsolicited ‘spam’ email.
One has only to realize that every single company with a web site stands to benefit from the MegaChain.com
multi-level, email, advertising program, making each of them a potential client. Perhaps more significantly, every
single person with an email account, [there are over 70 million in North America alone], stands to benefit either as
a customer, an agent or both. When one takes into account the sheer magnitude of these groups as possible
participants, the potential for MegaChain.com is limitless.
MegaChain offers web retailers the only form of Internet advertising that is invoiced on verifiable, measurable
results. Anyone with an email address can become a MegaChain Agent at no cost whatsoever and is remunerated
for generated responses via an automated system of multi-level commissions.
The explosion of retail sales on the Internet, the futuristic vision of management and the expertise of a seasoned
and savvy software team have combined to position MegaChain for an unprecedented breakthrough in viral
marketing technology. With well over a year of business planning and code writing already invested, a web site up
within weeks and beta testing about to commence, MegaChain is uniquely positioned to become the de facto
standard solution for multi level advertising on the Internet. What better time to invest in a high tech company
than just before the world knows?
This editorial piece may contain forward-looking statements made pursuant to the "safe harbour" provisions of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including,
without limitation continued acceptance of the Company's products, subscriber growth, product demand, competition, and other risks and
uncertainties detailed from time to time in the Company's periodic reports.
ABOUT THE MEGACHAIN PROGRAM
The MegaChain program is based on a unique relationship between MegaChain, Clients, Agents and Smart
Shoppers. Clients want to advertise the goods and services on their web site. Agents are those interested in the
opportunity to earn money by alerting their friends, relatives and business associates to the client’s
products. Smart Shoppers are all the rest of us who are always interested in a contest, bargain or freebie.
MegaChain
MegaChain creates an email incentive for the prospective client, featuring a contest, sweepstake, discount, trial
offer or giveaway. This email is sent to each MegaChain agent along with details about the amount of
remuneration an agent will receive for each person they forward it to who responds by signing the client’s
guest book.
An agent can use his password to enter a secure area on the MegaChain web site to view his total responses and
the appropriate commissions due. The client only pays for actual ‘sign-ups to his web site. Those that
receive the email are offered the clients’ incentive to sign their guest book. At any time, just by clicking on
the MegaChain symbol, they too, can come to the MegaChain web site and sign up to become an agent.
It’s fun, it’s profitable and best of all, it’s free.
Clients
Any company with a web presence stands to benefit from the MegaChain advertising program. The combination of
email and multi level commissions for agents gives the client a unique method of advertising their product or
service. MegaChain offers the only form of advertising that allows a client to pay only for successful, measurable,
verifiable results. Best of all, unlike ‘banner advertising’, there is no ‘front-end’ cost.
The client only ever pays for real results not just ‘click-throughs’.
The client participates in the success of his own campaign in several ways. By offering a compelling incentive to
the potential customer in the form of a contest, sweepstake, discount, trial offer or giveaway, in exchange for a
customer signing a guest book on their site, the client can stimulate customer response.
By determining what such a sign-up is worth to his company, the client can decide what size of commission
incentive to offer the agent chain [the greater the commission an agent earns for a sign-up, the more
enthusiastic they are about sending the message on].
The client also has the security of knowing that too much success won’t overspend his advertising budget.
Assume a client has determined that $10,000 should be earmarked for Internet advertising in a given month and
has set a commission of $1.00 for each guest book sign-up. He can custom tailor the response to match his
budget by stating, in the email advertising, that only the first 10,000 people who sign up will receive the
incentive. Those that are too late responding will be sent a conciliatory note apologizing for the offer being fully
subscribed and suggesting they respond sooner next time.
Agents
Anyone with an email address stands to benefit from the MegaChain agent program. By visiting the MegaChain
web site, filling out the enrollment form and obtaining your own password, you’re on your way to earning
big commissions without ever leaving the comfort of your own home.
You’ll have your choice of either receiving each new client email offer or coming to the MegaChain site and
only downloading those you are interested in. After that, simply forward the email to friends, relatives and
business associates. You can even personalize them if you want.
Every time one of your contacts responds to your email by visiting the advertising client's site and signing a guest
book, you'll automatically be credited with the appropriate commission. If those you contact choose to become
agents too, you’ll also be credited with all those responding to their email forwards…and so on and so
on.
At any time you can use your password to visit a special page on the MegaChain site that allows you to securely
view your entire ‘echain’, the results and the amount of commissions you are due.
At regular intervals MegaChain will credit you with your commissions by sending you a check or directly crediting
your bank account. There’s no sign-up fee, no inventory or initial investment, no quotas. Just work at your
own pace and only forward those emails you are satisfied the recipients will be genuinely interested in.
Keep in mind, once you build your email list, it’s just as quick and easy to forward one email as to forward a
hundred. As long as you already have an email account, it’s free, anywhere in the world and it’s as
fast as clicking on the ‘send’ button.
SmartShoppers
Anyone who surfs the web is sure to want to become a MegaChain SmartShopper. Come to the MegaChain web
site and sign up to receive our advertising emails so you can be the first on your block to benefit from the exciting
incentives our clients offer you just for coming to sign a guest book on their web site.
Sweepstakes, contests, trial offers, discounts and freebies are only part of the story. Our
‘forward-thinking’ clients will show you the latest the web has to offer with both their exciting goods
and services and their ‘cutting edge’ web sites. What a fun and practical way to shop for bargains
and keep up with ‘the latest and greatest’ at the same time.
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