THE CROWDSALE APP

DTC Brands + customers benefit in a win/win

Q: What is the crowdsale app?

A: It’s a sales revolution / evolution

Here’s how Crowdsale works:

1. You see a pair of boots for $215 that you love on a website, but the price is beyond your

budget. So you click a nearby “CrowdSaleThis” button set for $125

2. If enough other people click on the same crowdsale button during any given month for

$125, then critical mass is achieved – the critical mass number is determined by the brand

3. Your card is charged $125 (or PayPal) and your boots are shipped to you

4. If enough people don’t sign on for $125, after a month the product’s crowdsale closes.

Benefit to Brands

1) DTC Brands can set the crowdsale price at whichever amount of crowdsalers would be advantageous for them to make a profit on the item.

2) There could even be multiple crowdsale price points; example: 1000 orders at $125 and 2000 orders at $85.

Time frames: YY Nation shoe brand, for example, can set the number of people required in a crowdsale for a particular style of shoes to be reduced to $65 for 2,000 people for the month of September only – and then when the crowdsale ends, a new one can start. Or, the brand may want to have a constant/ongoing “$65 for very 1000 people” Crowdsale button.

3) Brands will have their customers letting them know for free which items need price adjustments as inherent feedback.

Benefit to Brands 2

• 4) Brands can scale quickly with a crowdsale -- manufacturing more than ever imagined with traditional promotion/advertising when enough people love a set price.

• 5) New and emerging brands can suddenly receive a windfall if a large crowdsale gathers around its product.

• 6) Although this isn’t an advertising platform, it serves as efficient alternative advertising & promotion for a brand or product.

Benefits to Consumers

1) The clear benefit to consumers is the sale/ money saved.

2) Consumers can share items for crowd-saling with friends on social media with hope of reaching a critical mass price point

3) Holidays + special occasions will become more affordable

4) Another option apart from eBay

5) The previously unaffordable is rendered more affordable with the help of others.

Benefits for Early DTC Adopters:

First to use / implement the Crowdsale concept for its shoppers, which could be revolutionary in terms of how people shop online. With DTC brands, a department store like SHOWFIELDS, for example, is uniquely positioned to debut this future-of-shopping concept

Increased sales as a result of the Crowdsale App option.

increased publicity for debuting the concept, more brands will want to be included on the platform that uses it.

Philanthropy

• If the crowd-saling model is successful, a philanthropic layer could be added, whereby a small percent of the brand profits for a particular sale could be earmarked for a charity for a given month. Example: BCA and October, November and Movember, February and the Heart Association, etc. — or just one charity overall.

Small Businesses

This helps new/emerging businesses flourish and compete through bulk orders, and saves on marketing and promotion.

Bonus: A Woman-Owned + Conceived Concept

Profitability - 2 ways:

• Crowdsale charges brands to be part of the crowdsale model — but brands can position their crowdsale “critical mass” number to cover this crowdsale fee (whatever that may be, once determined) -- so in this regard, it is free for brands to participate.

• Crowdsale earns 5% of each completed crowdsale from the consumer, too.

To crowdsale could become e a verb.