Mr. Brownstein: AdPads, Incorporated is a full service print and Internet marketing company that was founded about three years ago. Our main product, our front line media is the AdPads Marketing System which consists of display boards that are specially constructed to hold full color 4' x 5' pads, each one representing a different business that advertises in a high traffic location. The boards themselves are placed into high traffic locations such as supermarkets, diners, family restaurants, bowling alleys, movie theatres, convenient stores: any place that sees roughly 1,000 people a day or more passing by our display boards. The display boards are always placed in the highest traffic location within a location. On those boards are 4' x 5' pads. The pads represent one business each in a take-one format. Some of the boards hold nine advertisers, some of them hold 21 and some of our locations actually have multiple display boards depending on the amount of traffic and demand for the space. As a consumer, anyone can come along and view our board. There may be an ad up there for a car wash, plumber, lawyer, doctor, a fun center, you name it. Everybody is a potential customer for us. As far as the advertisers go, any size business from the smallest to the largest. The consumer then can choose the coupons that they'd like and tear them off. They would take off the top sheet of the pad and there's another one underneath so that the next person can utilize the coupons as well. The concept was implemented because of my knowledge in Web programming and marketing. I had a Web design company prior to AdPads. We began offering the coupons on the Web where people could go to the Website and search out coupons, then print them from their printers. The biggest problem we had with this concept was how do we get people to the Website, and let them know that the coupons were available to them? AdPads became the solution to the problem. If you look at any one of our display boards, on every one of our pages of pads, we advertise the Website, AdPads.com. They can view and print many more offers than seen on the display board and print them at any time of the day. Subsequently every time we place a new display board with 21 pads on it, 100 sheets per pad, we're sending our Web address home with people and our site receives more traffic. This enables us to have a nice element of both print and Internet. So we're absolutely low tech and high tech at the same time. Looking towards the future, we are planning to franchise the business. In fact, over the past two weeks we've really launched our Advertising Campaign nationally to promote our franchise network. It's something that the average person can get involved with for less than 20,000 total investment. It's a turnkey business, in which it has a very fast return on our investment time period. We do all of the graphic design, printing, and production of the boards, all of the shipping. We maintain the national Website. Everything is done except going out and selling the ads. This is a great franchise opportunity. We have ads appearing in USA Today, The Wall Street Journal, the local Philadelphia Inquirer and Star Ledger, and all the local, regional papers, as well as some well known magazines. Our business plan for the next couple of years is to increase the dollars spent on the franchise networking area for new growth.
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