Executive Summary
Billlserv.com, Inc. January, 1999
“Internet Billing is the next killer application of Internet financial services”
Research Report - Salomon Smith Barney, Oct.15, 1998
EARLY STAGE INTERNET DEVELOPMENT COMPANY
ESTABLISHED STRATEGIC ALLIANCES
INDUSTRY RECOGNIZED, PROVEN MANAGEMENT TEAM
TURNKEY SOLUTION FOR SMALL TO MID-SIZED BUSINESSES
MARKET RESEARCH INDICATES SIGNIFICANT CONSUMER DEMAND
DRAMATIC GROWTH FORECASTED FOR ON-LINE BILLING
TRADING SYMBOL BLLS ON THE US OTC BULLETIN BOARD
Electronic Bill Presentment and Payment (EBPP) has been quoted by many as being the next
"killer app" of the Internet. EBPP provides the ability to billers currently sending paper
statements via the postal service to instead send them electronically over the Internet to their
consumers. This change in medium offers many advantages to billers and consumers. For the
biller, the cost of publishing the bill statement and receiving payment will dramatically
decrease, saving the biller a minimum of between $.30 and $.85 per bill statement. This savings
will represent between $2 million and $5 million for a biller diverting 500,000 paper bills per
month. Billers can also use EBPP as an advanced marketing tool, similar to current statement
inserts, allowing for consumers to view interactive advertising and order product with the click
of a button. From the consumer's perspective, EBPP is quick, easy, inexpensive, and provides
value added services to traditional print and mail methods like statement and payment archival.
The initial challenge billers face with EBPP is the complexity of the technology and the number
of business relationships that must be managed. Today, billers deal with one point of contact
for all their statement publishing and mailing. In the EBPP world there are numerous points of
contact depending on where the consumer chooses to receive and pay their bills. Each of these
separate points of contact, also known as "front-ends" (e.g. Quicken(, MSMoney(, websites, or
on-line banking systems), require different systems for the biller to integrate, separate
relationships to manage, and require the biller to place significant internal staffing to manage
the delivery process. This effort can quickly become overwhelming for small to medium size
billers lacking the internal resources or financial resources necessary for such a system.
billserv.com, Inc. (“billserv.com”) offers a solution to billers with eServ(, a service bureau
solution for billers requiring EBPP capabilities. eServ( allows billers to outsource the
entire EBPP process, thereby directing the responsibility of managing the systems and
relationships to billserv.com. This allows billers to concentrate efforts on their core
businesses and have the ability to offer a quick and inexpensive EBPP solution. eServ( is
appropriate for any biller of any size. However it is particularly important to small or medium
size billers that lack the financial, technical, or manpower resources to provide the same
products larger billers provide; thus allowing them to compete more effectively.
Today, there are over 25 companies participating in the emerging EBPP marketplace, but the
majority of these companies do not compete with billserv.com. These companies are offering
partial EBPP solutions while billserv.com offers a full solution. billserv.com does this by
leveraging relationships with many of these companies, enabling billserv.com to offer an
umbrella of services which provides a full solution to the biller's EBPP needs. Essentially,
while companies like CheckFree, MSFDC, Intuit, Net Delivery, and many others fight over whose
service will prevail in the EBPP market, billserv.com offers all their services to a biller in
one bundled package. This takes the burden away from the biller to choose one relationship or
have the consequences of managing and building several relationships.
billserv.com also differentiates itself in the market with a unique marketing strategy. The
companies currently in the EBPP market are focusing on large billers, such as telcos or
utilities, processing over 1 million bills per month. billserv.com is marketing to the small
and medium size billers who need the same product offerings of the large billers but lack the
resources to develop and maintain internal systems. These billers are excellent candidates for
a total outsourcing solution. Because billserv.com is aggressively pursuing a different market
segment than other companies in the industry, billserv.com feels that a 5% penetration is a
conservative goal. With the market projected to be $2 - $4 Billion annually by 2001,
billserv.com can expect to generate $100 - $200 million annually in revenue and maintain a 35%
pre-tax margin.
The management team of billserv.com encompasses more than forty years of billing experience and
building large-scale on-line transaction driven systems. The team has deep financial services,
communications, and Internet industry experience. They have played significant roles in
building similar service bureau driven organizations from annual revenues of $3 million to over
$120 million in seven years and have worked well as a team for several years prior to starting
billserv.com.
Michael R. Long, CEO & Co-Founder, has 29 years of senior executive management and systems
development and management experience in 6 publicly traded companies, as well as successfully
starting and running his own systems consulting business. Mr. Long has held a number of
executive CIO and Information Technology based positions in companies representing
telecommunications (U.S. Long Distance, Billing Concepts), and financial services (Allianz
Insurance and USAA Insurance).
Louis A. Hoch, President, COO, & Co-Founder has over 12 years of middle to senior management
experience in large systems development and is a recognized expert in the field of Call Centers,
Voice Systems, and Computer Telephony Integration. Mr. Hoch's background has been primarily in
the telecommunications industry in which he has over 10 years of experience. As former Director
of Systems Development for Billing Concepts, he has deep knowledge in the billing and customer
care processes of Regional Bell Operating companies (RBOC'S), Interexchange carriers (IXC's),
Competitive Local Exchange Carriers (CLEC's) and Internet Service Providers (ISP's).
David S. Jones, Sr. Senior Vice President & Co-Founder has been one of the visionaries in the
Internet Billing industry helping to define the direction of the industry and educate companies
on the associated technology and processes. While employed at Billing Concepts, the industry
leader in billing for telecom companies, Mr. Jones was responsible for defining the strategic
direction involving Internet Technology including the championing of an Internet Billing
product. Mr. Jones has played an essential role in the development of the necessary
relationships needed to be effective in the Internet Billing marketplace and has been directly
involved in the marketing of the product.
Investors in billserv.com stand to benefit from a company that has high levels of innovation,
market awareness, customer commitment and management ability. The company has taken the
necessary steps to have its stock initially quoted on the OTC Bulletin Board, under the trading
symbol BLLS, and plans to apply for NASDAQ, after satisfying listing requirements. Full
business plans and profiles are available to investors seriously considering the potential of
the company.
The information contained in this report is for information purposes and is not intended to be,
and shall not constitute, an offer to sell nor any solicitation of any offer to buy any security
billserv.com, Inc.
FOR FURTHER INFORMATION:
1100 NW Loop 410, Suite 700
Robert Smith
San Antonio, TX 78213
888-559-4184 or 604-980-6817
r_smith@istar.ca
billserv.com
OTC BB Symbol - BLLS
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