• Global e-Commerce Product and Purchasing Sales Trends • Mark A. Iverson- Group Vice President, DR globalDirect• Email- markiverson@digitalriver.com

• Phone Number- +1-952-253-1234 ext 38583

The Daily StatsThe Daily StatsThe Daily StatsThe Daily Stats• 20 million pages• 30 million emails• 300,000 orders per day• 5 terabytes of digital content• 20,000 physical shipments• 2 second page loads

Real Data From a Truly Global eCommerce Service Provider

Eden PrairieEden PrairieEden PrairieEden Prairie

Aliso ViejoAliso ViejoAliso ViejoAliso Viejo

MinneapolisMinneapolisMinneapolisMinneapolisDublinDublinDublinDublin Stockholm (2)Stockholm (2)Stockholm (2)Stockholm (2)

Cologne (2)Cologne (2)Cologne (2)Cologne (2)

Digital River e-Commerce transactions every day- 300,000 enduser transactions in total!Digital River e-Commerce transactions every day- 300,000 enduser transactions in total!Digital River e-Commerce transactions every day- 300,000 enduser transactions in total!Digital River e-Commerce transactions every day- 300,000 enduser transactions in total!

Why Sell Your Software, Services and Technologies

Globally?

Because You Can!!!Because You Can!!!Because You Can!!!Because You Can!!!

The internet makes it a reality and scalable The internet makes it a reality and scalable The internet makes it a reality and scalable The internet makes it a reality and scalable for you and your businessfor you and your businessfor you and your businessfor you and your business

Why sell your software, products and services on line?q Affordable- ecommerce service providers only require a small percentage of your sale, some as low as $.99 USD per transaction

q Scalable- Your service provider can grow exponentially with your business, you cannot out grow your services

q Efficient- requires the lowest investment with a very high ROI, requires much less human capital, allows for many payment methods, currencies with no additional costs, etc. Your provider also handles DRM, fraud screening, secure download and license key delivery

q Global- You can access the largest business and consumer markets on the planet right at your finger tips

Why sell your software, products and services on line?q Real time results- your ecommerce

platform has tracking and reporting to help you monitor sales and success

q Distribution- Some ecommerce service providers have affiliate, reseller and download site networks

q Effective- Most service providers have tool sets built in their platforms that help you market at global level

To be successful you need to target the largest ecommerce markets

q Now you know where the online purchasers are located. It is a completely different snapshot compared to where the vendors are located. Here is the percentage of revenue generated by our vendors and where they are from:

q This means that if your company is not based in the US or EU, the biggest opportunity for success is outside our your native country and you should be SELLING to the US and the EU

q The best way to reach enduser and your highest potential for success is to market your products to the west.

q The easiest and most efficient way to do this is through ecommerce. It is you biggest opportunity for success!

Now, A Different View of the Global Economy

Vendor Contribution to DR SalesINDIA 4.29%AUSTRALIA 3.27%CANADA 4.17%RUSSIA 8.73%ALLELSE 7.08%CHINA 15.38%EUROPE 19.61%US 37.48%Total 100.00%

Total Dollars Spent Online in the U.S.

2010 Actual is $179b, up 15 % from 20092010 Actual is $179b, up 15 % from 20092010 Actual is $179b, up 15 % from 20092010 Actual is $179b, up 15 % from 2009

How visitors found the site they were looking for

• Search engine optimization is optimal. Search engine optimization is optimal. Search engine optimization is optimal. Search engine optimization is optimal. Especially with the new Google rules, Especially with the new Google rules, Especially with the new Google rules, Especially with the new Google rules, original content is importantoriginal content is importantoriginal content is importantoriginal content is important

• Use ad-words to add additional value Use ad-words to add additional value Use ad-words to add additional value Use ad-words to add additional value to your effortsto your effortsto your effortsto your efforts

• email marketing is a great way to email marketing is a great way to email marketing is a great way to email marketing is a great way to continue your continue your continue your continue your ““““relationshiprelationshiprelationshiprelationship”””” with your with your with your with your endusersendusersendusersendusers

Do Not Forget Word of Mouth…

Recommendations are the best form of

advertising for SOFTWARE products

U.S. Online Sales Category %

Clothing, accessories and footwear

9% 10% 11% 11% 12% 12%

Computer Hardware, Software and Peripherals

52% 54% 55% 55% 55% 55%

Consumer Electronics

14% 16% 17% 18% 19% 19%

2009 2010 2011 2012 2013 2014

What categories are people spending money onWhat categories are people spending money onWhat categories are people spending money onWhat categories are people spending money on

• These three categories represent $67.7 billion of the $179.1 billion in These three categories represent $67.7 billion of the $179.1 billion in These three categories represent $67.7 billion of the $179.1 billion in These three categories represent $67.7 billion of the $179.1 billion in online sales for 2010online sales for 2010online sales for 2010online sales for 2010

Online Buying Habits in 2010

• Understand that people who purchase online do it Understand that people who purchase online do it Understand that people who purchase online do it Understand that people who purchase online do it multiple multiple multiple multiple times- relationship marketing is a musttimes- relationship marketing is a musttimes- relationship marketing is a musttimes- relationship marketing is a must

• People shopping online are shoppers, looking for People shopping online are shoppers, looking for People shopping online are shoppers, looking for People shopping online are shoppers, looking for informationinformationinformationinformation

• People who purchase online would rather People who purchase online would rather People who purchase online would rather People who purchase online would rather buy buy buy buy directly directly directly directly from the manufacturer or developer than a from the manufacturer or developer than a from the manufacturer or developer than a from the manufacturer or developer than a store frontstore frontstore frontstore front

PC and Mac Online Software Sales • Online software sales Online software sales Online software sales Online software sales

are planned and not are planned and not are planned and not are planned and not incremental salesincremental salesincremental salesincremental sales

• Online software sales Online software sales Online software sales Online software sales by category vary by category vary by category vary by category vary significantly than retail significantly than retail significantly than retail significantly than retail store salesstore salesstore salesstore sales

• Personal productivity Personal productivity Personal productivity Personal productivity (music, movies and (music, movies and (music, movies and (music, movies and digital imaging) software digital imaging) software digital imaging) software digital imaging) software products are on the riseproducts are on the riseproducts are on the riseproducts are on the rise

• Casual games are on Casual games are on Casual games are on Casual games are on the rise. i.e. Mah Johng, the rise. i.e. Mah Johng, the rise. i.e. Mah Johng, the rise. i.e. Mah Johng, Solitaire, Sudoku, etc.Solitaire, Sudoku, etc.Solitaire, Sudoku, etc.Solitaire, Sudoku, etc.

Smartphone Sales Trends

• Smartphones are Smartphones are Smartphones are Smartphones are starting create a demand starting create a demand starting create a demand starting create a demand for more software and for more software and for more software and for more software and AppsAppsAppsApps

• App stores are growing App stores are growing App stores are growing App stores are growing exponentiallyexponentiallyexponentiallyexponentially

iPads and Tablets Are Also Creating Demand

Mobile Trends

• App stores are a great App stores are a great App stores are a great App stores are a great part of your distribution part of your distribution part of your distribution part of your distribution strategystrategystrategystrategy

• Use app stores to drive Use app stores to drive Use app stores to drive Use app stores to drive traffic to your main PC traffic to your main PC traffic to your main PC traffic to your main PC and Mac software and Mac software and Mac software and Mac software productsproductsproductsproducts

• Use app stores as a way Use app stores as a way Use app stores as a way Use app stores as a way to to to to ““““tethertethertethertether”””” your endusers your endusers your endusers your endusers to your PC or Mac to your PC or Mac to your PC or Mac to your PC or Mac software apps on their software apps on their software apps on their software apps on their desktops or notebooksdesktops or notebooksdesktops or notebooksdesktops or notebooks

• Hard to make money if Hard to make money if Hard to make money if Hard to make money if you are an app store only you are an app store only you are an app store only you are an app store only product, lots of clutterproduct, lots of clutterproduct, lots of clutterproduct, lots of clutter

Software as a Service Sales Trends • Software as a service

subscription will grow 311.5% by 2013

• Traditional PC and Mac software will grow by 20.2% by 2013

• All software will grow by 34.4%

• Traditional software represents 91.4% of all software sales in 2010, in 2013 represent 77.7%

• SaaS is a completely different platform than PC or Mac software, you need to consider variations of your development plans

The Key Factors for Building The Key Factors for Building The Key Factors for Building The Key Factors for Building Your e-business.Your e-business.Your e-business.Your e-business.

• This Presentation will be available at www.developer-resource.com

• Thank you• Mark Iverson, group vice president,

DR globalDirectEmail- markiverson@digitalriver.com Phone Number- +1-952-253-1234 ext 38583Mobile- +1-612-669-0613