The Internet Pricing Dilemma: Example

18 cents per viewer per hour This is the average prime time television ad

revenue for NBC, ABC, CBS and Fox

If there was a convenient, low cost way for viewers to pay 25 cents directly to the networks, they could be profitable without embedded advertising.

Fair Market Pricing of Electronic Content is Distorted by Credit Cards

The Pricing & Ease of Use ObstacleTypical credit card fees (25 cents plus 3%)Cards are also inconvenient for low value transactions

Consumers have a low perception of value on electronic content. Music, clip art, magazine articles, apps and video with a

perceived value between 5 and 50 cents cannot be priced accordingly--due to the minimum 25 cent credit card fee.

Why Micropay Solutions Have Failed

Critical Mass DilemmaContent providers were slow to adopt micropay

platforms when too few consumers had accountsConsumers didn’t want to pre-fund account when

there is limited content to buy. A $10 deposit doesn’t feel like a micropayment. It

feels like a risk.

Previous micropay efforts also pre-dated streaming video—with higher perceived value.

Previous platforms gave no extra benefits. Just another payment option.

Patented 2-Way Micropay Solution Solves the Micropay Dilemma

• The first micropay platform that allows users to both spend and receive money.

Eliminates need to prefund accounts

Gives many added benefits to users, including

over $100 per year in “free money”

Gives content providers added valueEliminates consumer’s privacy and access

concerns

Priming the Pump -- How It Works

As soon as users create a free account they begin to get a stream of “free money” every time they see an ad in our ad network.

These “free” ad dollars can then be used to buy the content they want with as little as two clicks. No need to pre-fund the account Feelings of instant gratification.

Content Providers

Consumers

Advertisers

$ $

Everyone Shares the Benefits from Superior Market Data

We accumulate marketing data on purchases made, ads viewed, and interactions with advertisers and content providers, plus volunteered information.

Consumers have a means and motivation to allow us to accumulate and disseminate marketing data because they make more money every time their profiles are used.

Empowering Consumers to Monetize Their Own Market Profiles

Consumers earn 85% of marketing dollars spent to capture their time and attention

Each user can set different receipt charges by commercial categories or different people

Example: 5 cents for offers related to movies

$1.50 for offers related to investment newsletters

Free for Mom, 10 cents for Bob, $1 for unknown people

Users can block specific categories or individual senders

Two Way Flow of FundsWith Any Electronic Communication

Hyper-LinksMobile

$User User

$User Business

E-Mail

$Business Business

Ad Networks

Accounting and Fee Structure

Track all transactions, balances, and fees to 1/100th of a penny.Transactions as small as one penny are allowed.If it isn’t worth 1 cent, it’s not worth clicking on.Now newspapers can finally make money again.

Our fee: 15% of first $2 (plus 3% over if $2)

15% from consumer viewing an ad 15% from content provider when consumer spends

her “free” ad money

Risk Mitigation

Micro-payments have micro-riskConsumers and vendors are contractually

required to bear that micro-risk Vendor tools for issuing refund Consumer tools for registering complaints

As the service provider, we reserve the option to investigate and reverse charges, but there is no obligation to do so.

Example Direct Marketing E-Mail

Direct marketing campaign authorizes up to 7 cents delivery fee per person on selected list.

User A requires 5 cents. After confirmed delivery of message, receives 5 cents. Excess 2 cents refunded to advertiser.

Payments are always contingent on confirmed delivery.

Multiple Ways to Earn Money & Reward Consumer Behaviors

Example: As a Universal Loyalty / Reward Points Platform

Rewards programs typically have delayed gratification

Linking rewards to 2-Way Micropay payments satisfies consumer’s desire for instant gratification

Micro-Affiliate AutoSplit Example

Record label allows referral fees

Ted adds his Qixit ID to end of referral link www.MusicLabel.com/RedRain321&Ted21

Jenny buy’s through Ted’s link, generating an automated three way split of the payment 20% goes to Ted’s account for the referral 15% goes to the band, RedRain 65% goes to the distributor, MusicLabel.com Qixit earns 15% from each recipient of funds

Advertiser Benefits

RECEPTIVE PROSPECTS Buy immediate good will and receptivity

FRAUD PREVENTION Limit how often viewer can get paid.

BUILD BETTER LISTS Better data and permission granted follow-up contact info.

LASER TARGETED PROSPECT LISTS Find recent buyers within any demographic

Everyone’s Time Tension

Desire to be Accessible

Desire to Block Distractions

Looking for Balance

The Qixit Solution: Auto-Negotiated AvailabilityParties negotiate mutually agreeable price for gaining access

to a each other’s time and attention.

Controlled Access – User Benefit

Facebook Experiment $1 charge to email a Facebook user who is not

a friend $100 to email CEO, Mark Zuckerberg

Initial blog reaction: Users feel exploited.

Facebook users would feel enriched if they were paid 85% of the charge . . . especially if they could set their own rate.

2-Way Micropay is your . . .

Personal Secretary: We screen both personal and commercial communications, allowing through only those that meet your threshold of interest . . . in other words, those which pay for your time and attention at the rates you set.

Market Identity Broker: We increase the value of your time and attention, and how much you can earn, by tracking and disseminating your market profile, allowing companies to use it only when you are paid the rates you set.

Preparing the Way to Universal Market Profile Data Sharing

Most valuable marketing data is that identifying “recent buying behavior”

Banks and credit card companies have the most valuable marketing data of all – but it is not for sale.

Using the 2-Way Micropay model to compensate consumers each time their data is used, consumers may opt in to make all data on their purchases accessible as part of their market profiles—in return for more money!

2-Way Micropay is Disruptive Across Multiple Markets

Spam Prevention

Financial Transactions

Pay to ReadAds

PrivacyProtection

Mobile Payments & Mobile Marketing

SecureMessaging

MarketResearch

ListBrokers

Ad Delivery

E-Payment E-Marketing

E-Messaging

Current Status

Our functional platform is up and running in beta. www.2WayMicropay.com www.Qixit.com

We are seeking Joint venture partners Key personnel for management Qualified investors

David Reardon, CEO reardond@qixit.net (636) 486-6918