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A Telli Business Plan and Summary

Telli's Expansion & Growth through a Network of Locally Owned Sites

Address: 6 Beach Road, #1088
Tiburon/Belvedere, CA 94920
Phone: 415-435-1280


TELLI BUSINESS PLAN AND SUMMARY
LOCALLY-FOCUSED AND LOCALLY-MANAGED MINI SEARCH SITES

  For more information, click on one of the links to the right of this page.


EXECUTIVE SUMMARY

Over the last five years, the time people spent reading newspapers, watching TV, listening to radio, and using other advertising supported media like the yellow pages has dropped about 25 percent while the time they spent with digital media has increased by 65 percent.

As a result, Internet advertising expenditures climbed from $59.6 billion in 2015 to over $72.5 billion in 2016.Last year Internet advertising revenues surpassed the amount spent on Television advertising and are expected to exceed $200 billion in 2018.

While all attention seems to be directed toward digital advertising a major change is occurring in marketing budgets, especially at the local level. Companies have begun spending vast amounts of money on the basic underlying services needed to support their digital advertising.

However, approximately 50 percent of small businesses still do not have websites or significant Internet exposure. These business owners feel confused and frustrated with digital marketing and complain about being pestered by telemarketers who don’t understand their marketplace or their business needs.

Borrell Associates, a major global Internet research organization (See, www.borrellassociates.com), reports that these findings, “point to what we believe is both trouble and opportunity for anyone trying to help local businesses market themselves.”

This business plan shows how Telli plans to dive into communities and help local businesses reduce their advertising expenditures and generate more business from their advertising dollars through comprehensive mini search sites similar to our operating prototype site Telli Marin at www.telli.com.

As with Telli Marin, the mini sites will focus on local areas and contain listings downloaded from AT&T phone records. Each listing will have a basic web TelliPage showing a location map and further details so the sites will be useful to local residents immediately as an interactive online local directory.

Using Telli’s simple-to-use and affordable advertising and web design tools, business owners can enter, update, and enhance their information to increase their local exposure and local residents can add classifieds and listings for events, classes, and local activities.

Since Google and other search engines access Telli Marin over 500,000 times a month to copy and display Telli listings on their websites as links to Telli Marin; the mini sites also provide local businesses with broad Internet exposure.

Telli local advertising representatives will be contracted and trained to provide personalized professional support to advertisers at their places of business through a “hands-on” approach using laptops accessing Telli’s advertising and web design tools located on Telli servers at a secure URL site address.

To insure our new marketing program will be cost effective, we plan to establish Telli local mini sites in other counties, beginning with counties adjacent to Telli Marin. As the sites are established, we will franchise these sites to marketing people who live in the areas to operate and manage as their own mini Internet sites using the easy-to-operate Telli Site Administrator program.

The Telli Site Administrator allows Telli Site Owners who are not familiar with computer programming or web design codes to manage their online sites remotely and constantly update and modify the categories, information, and structure of the sites to keep them current with local needs and trends.

Borrell Associates reports that a local search company that is established like a large TV network with multiple local affiliates could more readily establish a strong foothold in individual communities than nationwide players. “Google doesn’t have that,” commented Borrell.

THE BUSINESS

Incorporated in the state of Nevada on September 13, 1993, Guinness Telli*Phone Corporation is a developer of proprietary interactive networking systems and simple automated Internet advertising and website development tools (Telli Systems). Also, we are publishers of online educational programs and online content.

TELLI SYSTEMS OPERATING PROTOTYPE

We created the first locally-focused and locally-managed comprehensive micro-category search-and-content site Telli Marin at www.telli.com to serve the 104,000 households of Marin County, CA, and

  • Replace local telephone directories with listings that are more current and display more detailed information. (Marin Yellow Pages generates over $6 million in local advertising revenues.)

  • Provide local listings of movies and current information on events, classes, and activities usually not found on major search sites.

1,000s of people use Telli Marin every day.

Local Business Listings: AT&T provides Telli with telephone installation records and monthly updates. Telli downloads the listings into its database and expands them into Telli’s 3,400 micro-categories. Listing information is automatically displayed on free basic Internet web pages (TelliPages) showing each businesses address, contact information, tag line, website link, location map, hours, and an overview its products and services.

Telli Search:  Local residents use Telli's multi-level search system to find what they want quickly without having to sift through extensive global information. People can instantly

  • Find a specific business or organization by entering all or part of its name, address, or phone number.

  • Target only the businesses offering a specific product or service they seek.

  • Create a filtered list of only the businesses offering all the features they specify.
    For example: Telli users can display a list of child-friendly seafood restaurants with a full bar that are close to shopping, serve fish and chips and hamburgers, and offer outdoor dining with a view.

Telli Advertising Platforms: Telli provides two advertising platforms with simple-to-use web tools for people to 1) enter and update their own information and 2) highlight themselves in their community, and 3) increase their exposure on the Internet.

  • Basic Free Promotional Platform: At no charge, businesses can enter and update their listings and listing details, and anyone can post classifieds and reviews as well as simple TelliPages promoting their community events, classes, and activities.

  • Enhanced Subscription-Based Advertising Platform: Using Telli's easy-to-use and affordable web-page advertising and design tools, businesses can enhance their free basic TelliPages and manage affordable digital advertising campaigns such as announcing new products or services, offering special deals and coupons, and sending customer email alerts. Also, subscriber's listings are highlighted frequently on the Telli Home Page and appearat the top of their category lists.

In addition and at no charge, all businesses can view a page showing monthly statistics on how many people viewed their TelliPages and clicked on the links to their websites.

SMALL BUSINESSES EXPERIENCE INTERNET MARKETING PROBLEMS

However, major Internet research organizations report that small businesses say they have neither the time nor the knowledge to manage their own digital marketing and advertising programs.

In addition, approximately 50 percent of small businesses still do not have websites or significant Internet exposure.

  • Small business owners report they’re confused and frustrated with digital marketing.

  • They complain about being pestered daily by telemarketers attempting to peddle SEM, SEO, digital dashboards, social media management programs, and mobile marketing opportunities.

  • Business owners say the telemarketers and web designers who call them are not located in their area so they don't understand their marketplace and their business needs.

TELLI SOLUTION  AN INTIMATE MARKETING APPROACH

Realizing small businesses have neither the time nor the skills to manage their own digital marketing and advertising programs; we conducted a small test. We offered to provide a few small businesses with assistance in using Telli Marin to manage local promotional programs. We offered to create TelliPages of advertising for them through a personal “hands-on” approach at their places of business.

The test was a great success! Almost every business owner we approached contracted us to create a TelliPage for their business. As they reported, “Your service is no more expensive than it costs for one advertisement in the local newspaper and your monthly subscription is considerably less than a highlighted listing in the yellow pages directories. In addition, I can update my TelliPage and listing information at any time and as often as I want for no additional charge.”

Therefore, Telli is preparing to contract marketing people in Marin County to offer personalized marketing and design services to local businesses.

TELLI PRODUCTS AND SERVICES

TelliPage Design

Telli will charge an affordable creative design fee to create TelliPages on behalf of subscribers. Prices will vary depending on the sophistication of the design, content, graphics, and photos required by subscribers.

Telli Advertising Platform Subscriptions

Subscribers will pay a small monthly fee for as long as their TelliPage remains on a Telli Advertising Platform. They will receive a discount for an annual subscription.

Telli Banner Design

For a one-time creative design fee, Telli will create click-through advertising banners to appear on Telli site category pages.

Telli Banner Subscriptions

Clicking on a banner will send users to specific website pages or to subscribers’ TelliPages. Subscribers will pay a fee for 1,000 banner impressions (the number of times a banner is displayed) for each category page where their banners appear. For example, a photographer may place a Telli banner on the page of listings for “Event and Party Banquet Facilities – Space Rental.”

TelliPage Maintenance Service

Subscribers will pay a monthly fee for Telli to maintain and update subscriber’s TelliPages and banners on their behalf. Subscribers will email Telli notices of special sales, coupon offers, and new products or services. Telli will incorporate the information in their TelliPages, create coupons, place news items on the Telli Home Page, and send out email alerts to their customer or client followers.

TELLI EXPANSION THROUGH LICENSING

Next, we will expand our operations by establishing focused mini sites similar to Telli Marin in other areas, beginning with counties adjacent to Marin County such as Sonoma and Napa Counties, and license them to qualified marketing people who live in the areas to operate as their own businesses.

Prospective licensees will most likely be experienced retail advertising sales managers at local media firms who want to join Telli to manage and grow local sites as their own businesses. They will be responsible for site operations and marketing, as well as maintaining personnel to promote their sites and provide local businesses with personalized ad and web-design services.

MANAGING AND PROMOTING TELLI SITES

Licensee Responsibilities

The Telli Administrator software program resides on a Telli server. This allows Telli Site Owners to manage, modify, and maintain their online sites remotely on their computers or laptops through the Internet at a secure Telli URL address.

  • Maintain the structure of their sites to insure that each provides all the relevant categories for their area and reflects the character of their individual communities.

  • Update their sites with new business listings, service vendors, and community information.

  • Oversee the content of their sites to insure that the information is always secure, accurate, and appropriate for their local users.

  • Assist and advise businesses with branding, advertising content, and design.

  • Produce and constantly update TelliPages and banner ads, design websites, and maintain advertising programs on behalf of local business subscribers for additional affordable fees.

Telli Responsibilities

  • Administer the investment in each site and oversee the management of site operations.

  • Maintain the servers and keep the software current with new developments.

  • Provide licensees with marketing, training, guidance, and advertising support.

  • Collect and distribute all revenues through its automated online subscriber payment system.

 MARKET FOR TELLI SITES

  • Enhanced Local Directories – $8 Billion in Potential Advertising: Borrell Associates reports that people spend miniscule amounts of media time with print yellow pages, yet advertisers still placed nearly $8 billion worth of advertising in them in 2013, equating to almost $19 billion per minute of consumer usage versus only $1 million per minute of TV usage.

  • Declining Traditional Media Usage: Over the last five years, daily usage of traditional media has fallen by more than 25 percent. Borrell Associates predicts a further drop of 25 percent or more in audience usage by the end of 2018.

  • Target Marketing: In 2013, cable companies started delivering a specific commercial to a specific neighborhood. Borrell reports that online media holds the same potential.

  • Local Purchasing: Surveys report that 96 percent of consumers use the Internet to find products, services, and activities before actually buying. Moreover, they complete 90 percent of their purchases at local establishments.

TELLI  MORE THAN A SEARCH ENGINE

Local residents and businesses use the Telli site to

  • Find local products, services, movie and event schedules, and special deals.

  • Find local schools, health and fitness classes, adult training programs, and kids’ programs.

  • Find and enter, at no charge, business listings, and information on local events, meetings, lectures, and workshops.

  • Find and offer products and services in a free classified directory.

  • Post customer recommendations, referrals, and reviews at no charge.

  • Publish TelliPage blogs.

TELLI  AN INEXPENSIVE LOCAL INTERNET ADVERTISING PLATFORM

Businesses can sign up for a monthly subscription to the Telli Advertising Platform and highlight their products and services by

  • Showcasing their businesses, services, and news on the Telli Home Page and at the top of their categories.

  • Developing web pages of current information quickly and easily and keeping current with instant updates.

  • Displaying instant deals, specials, and coupons.

  • Appearing automatically on major search-engine sites for greater exposure on the Internet.

  • Publishing news articles and promotions.

  • Sending automated email alerts to their customers.

  • Tracking the number of users accessing their information.

INTERNET ADVERTISING MARKETPLACE

Internet advertising revenues in the United States totaled $73 billion in 2016 and local online advertising revenues represented over 50 percent of this total Internet advertising market.

  • Total U.S. Advertising Spending:
    $174 billion (2013)

  • Internet Advertising Revenue:
    $42.8 billion (2013)

  • Broadcast Television Advertising Spending:
    $40.1 billion (2013)

  • Cable Advertising Revenue:
    $34.4 (2013)
  • Total Newspaper and Magazine
    Advertising Revenue:

    $31.4 billion (2013)
  • Direct Marketing Revenue:
    $21 billion (projected for 2013)
  • Radio Advertising Revenue:
    $16.7 billion (2013)
  • U.S. Local Advertising Revenue:
    $132.7 billion (2013)

Borrell Associates (www.borrellassociates.com), a major global Internet research organization, in their 2014 Digital Marketing Services Outlook: Small Businesses Learn the Cost of Managing their “Own” Media, reports that money spent on digital marketing “services” in 2014 will consume more than two-thirds ($3 out of every $5) of all U.S. digital marketing expenditures.

COMPETITION

Many of Telli’s features can be found on national online networks like Google, Craigslist (classified pages at www.craigslist.org), Yelp (pages of consumer reviews at www.yelp.com), Facebook (social networking pages at www.facebook.com), LinkedIn (professional networking pages at www.linkedin.com), Groupon (pages of discount coupons at www.groupon.com), Twitter (a limited social, professional, and corporate network announcement site at www.twitter.com), YellowPages.com (a national directory of business listings at www.yp.com), and Local.com (a directory of limited business listings at www.local.com).

However, except for Telli Marin, we believe there is no comprehensive local information site with all the features of the above companies that is managed and operated locally.

TELLI COMPETITIVE ADVANTAGE

Telli local information sites

  • Focus exclusively on the detailed and current information of individual communities.

  • Are managed by local operators who provide personal hands-on assistance and advertising support at subscribers’ places of business.

  • Are more comprehensive and up-to-date.

The Telli system automatically creates a free basic information web page for all listings in the area to provide people with an instant overview of the specific products and services offered by each business and organization in their community.

Search engines and local directories do not have a physical presence in the area, are usually not up to date, and offer listings with only names, addresses, website links (if a business has one), and only land-line phone numbers.

  • Display enhanced listing content through inexpensive do-it-yourself colorful web TelliPages that subscribers can be create and constantly update instantly without any programming or website design skills.

  • Offer multi-dimensional search powered by keyword, menu, micro-category, and multi-feature searches

  • Provide multi-feature search for people to create a unique page of listings that adhere to multiple variables assembled from their own criteria. (See, www.telli.com/variablesearch)

  • Make it easy and quick for people to communicate and find community information and activities, without having to sift through large amounts of irrelevant global information.

KEY STRENGTHS TO TELLI'S SUCCESS

Low Operating Cost: Telli local site automated technology and simple advertising tools make it easy to for businesses and professionals to distribute specific information and current details to consumers, patients, and club members.

Serves a Market Need: Telli locally-focused community advertising platforms provide affordable Internet promotional opportunities. They provide

  • Increased traffic for organizations with websites by driving more local viewers to their sites.

  • Targeted advertising opportunities for businesses with multiple retail outlets to create different promotions for each of their retail stores to address the specific daily needs of people living around each of their places of business.

  • A free listing service for home businesses and people providing local services, especially those operating exclusively from mobile phones (not listed in any directory).

Meets Market Trends: Allows people to instantly broadcast urgent messages through email alerts to their followers and by posting last-minute meeting times, coupons, reviews, recommendations, schedules, and TelliPage updates.

Intelligent Information Management: Telli listings are downloaded from telephone installation and disconnection records supplied to it monthly by AT&T (not from outdated mass mailing lists) and modified by Telli listing editors into Telli’s extensive micro-categories, making Telli information the most up-to-date and comprehensive available anywhere.

Technologically Advanced: Telli’s quick multi-feature filtering system allows viewers to specify a number of features to create a unique page of only the businesses that offer all the features they specify.

Local Personalized Service: Through its site owners, Telli has a physical presence in every area that a Telli local information site serves. In addition to being able to provide subscribers with personal advertising and design services, participating in the community allows Telli to keep its information and micro-categories current on all changes, updates, and community trends.

Low Administrative Cost: Telli’s technology and marketing approach is common to all its local information sites, so as the Company establishes new sites in other areas, its overall overhead to operate each local site will decrease, and the Company will generate increased profits exponentially.

Expanded Coverage by Major Search Engines: Google and the other major search engines access Telli Marin over 500,000 times a month to copy its up-to-date listings on their sites and display them as links to Telli Marin on their websites; thus providing its subscribers with greater advertising exposure.

MAJOR SEARCH ENGINES FAIL TO MEET LOCAL PEOPLES NEEDS

Google, Yahoo, Bing, and other search engines have spent millions in an attempt to conquer the local Internet advertising marketplace but have failed so far. According to Borrell Associates, over $10 billion in local advertising revenues is still up for grabs.

Major search engines work out of central global offices and rely on robots to search websites on the Internet for their information and download listings from a national supplier of mailing lists. They have no physical presence in local areas and they don’t allow people to enter or modify their own information. Many small businesses without websites, and especially those who operate exclusively from cell phones, do not appear on the major search engines. Therefore, the information on search sites is not comprehensive or, in many cases, not up to date.

We checked! Google, Yahoo, Bing, and YellowPages.com provided little or no information on current deals and specials from local businesses or upcoming local events and activities.

  • They provide only business listings and, in some cases, links to websites.

  • They do not list many newly-established small businesses, people operating businesses from mobile phones, professionals working in salons, medical centers, and large offices, local theatre productions, concerts, arts programs, markets, classes, and festivals.

  • Unlike Telli, major search sites do not allow people to enter multiple features in one single search to target only the businesses offering all the products and services they specified.

  • We found many listings where the establishments were no longer in business. Some had closed more than 10 years ago.

Users report that navigating major search systems for local information is unsatisfactory. They say it is time consuming, and, in most cases, they end up not finding the current local details they seek.

WHO WE ARE

Our Mission is to provide every community with the most relevant, up-to-date, and comprehensive information from weather, live web cam views and restaurant hours to live concert schedules and little league practice times, all available through a simple and effective local networking and communication system by

  • Establishing local online information sites managed by Telli Administrators with a marketing background. We will require the Telli Administrators to live in the areas they serve and maintain the highest community standards and values through the information in their sites. Many of these Administrators will be newspaper, magazine, radio, and television sales representatives who desire to own and operate their own local search and online advertising businesses.

  • Training local Telli Administrators to help people to understand the effect of the Internet in their community and demonstrate how to use Telli systems, products, and tools to create focused marketing and promotional campaigns.

Our Social Obligation is to inform users and consumers accurately about this new Internet tool. Local Administrators will communicate directly with schools, parents clubs, and associations and conduct workshops at local Chambers of Commerce and other club meetings (Rotary, Lions, Kiwanis, etc.) to insure that people use the Telli systems, tools and products to foster the unique lifestyle of each community.

Our Vision is to be the central One-Stop Information portal and Public Center for each community's source of information and local commerce by providing a secure focal point through which all people can communicate and quickly find the specific information that meets all the criteria to fulfill their individual needs, make their daily routines more efficient, and enhance their local lifestyle.

We will encourage artists, teachers, and entertainers to display their unique promotions free of charge so people will have access to the most current details about what's happening in their areas.

We Value the use of the technology to maintain and improve the unique standard of living in each community, rather than using it to encourage people to follow a national trend. We are committed to insuring that the communities we serve maintain their individuality by structuring their local online information sites with subject categories that are

  • Relevant to each area’s environment.

  • Of special interest to the people who live in each community.

GUINNESS TELLI*PHONE MANAGEMENT

Lawrence Guinness, Chairman, CEO and Director, is founder and developer of Telli systems and has 40 years of experience in raising capital and managing various successful publishing and media ventures.

In 1967, with $300,000 in private funding, Lawrence founded Guinness Publishing Ltd., Toronto, Canada, that published the first full-color educational textbooks for the elementary school curriculum. In 1969, with $500,000 obtained from a New York venture capital firm, Lawrence founded Guinness Publishing Ltd., New York, to publish educational textbooks for the entire North American marketplace.

In 1979, he sold his publication rights to finance the development of interactive computer educational programs and networked media software systems and moved the company offices to Marin County, CA.

In 1993, Mr. Guinness founded Guinness Telli*Phone Corporation and moved all his previous ventures into this new company. In 1994, to fill a commitment he made to his investors, he prepared and filed a Form 10 with the U.S. Securities and Exchange Commission, and Guinness Telli*Phone Corporation became a public company, trading on the OTCBB under the symbol TELI.

The Company ceased to file 10-K and 10-Q reports with the Securities and Exchange Commission in 2000 and was reduced to trading on the OTC. In April of 2010, through a settlement agreement with the Securities and Exchange Commission, the Company ceased trading on the Exchange in return for being able to file a Form 10 with only two years of audited statements when it believes it is ready to return to the OTCBB.

Patrick Guinness, President of Guinness Telli*Phone Corporation, has worked with the Company since 2000 developing and managing all Telli software systems, tools and programming operations. He is experienced in both front and back-end web development using technologies like HTML, CSS, Javascript, object-oriented PHP, MySQL database, and Apache. For four years he was the lead developer for a full-service B2B marketing agency in San Francisco, building products for high-profile clients like VMware, NetApp, Google, Adobe, and Océ Printers.

Judith Wilson, Editorial Development, Director, is a writer and journalist with over 35 years of writing experience including 12 years with a successful local newspaper where she served over 3 years as managing editor. Ms. Wilson has a Bachelor of Arts in English from the University of British Columbia. She has worked with Guinness Publishing and Telli on many projects since 1975.

TELLI'S DEVELOPMENT AND MARKET PREPARATION

Telli has raised small amounts of capital from time to time to complete various stages of its development, test its systems in the marketplace, and conduct focused marketing tests. All capital raised was through the sale of the Company’s Common Stock to private investors.

During our development stages, we did not believe it was cost-effective for us to launch an advertising program to promote Telli to businesses in the area until our

  • Listing tools were simple enough for people to place information in Telli without difficulty.

  • Web-design systems were simple enough for businesses, professionals, and providers of local services to create web pages without computer design and programming skills.

  • Local system management tools were so simple to operate that Telli local site owners and operators were not required to have significant computer skills.

  • Telli operating systems were secure enough that we would not experience any problems with our automated billing and payment systems.

TELLI HISTORICAL HIGHLIGHTS AND ACCOMPLISHMENTS

It is well known that the radio and television programs, the newspapers and magazines, and the Internet sites with the most viewers attract the largest amount of advertising dollars. Telli spent time learning how to attract the most viewers to its model site, Telli Marin.

The existing subscribers on Telli’s enhanced advertising platform signed up directly on the site after finding Telli Marin on the Internet.

Telli has invested in research and development only, without advertising its products and services in the marketplace.

1982 – 1985: Development of computer interactive educational programs and an online business information directory powered by videotext. The programs resided on the company’s mainframe computer which was connected to the telephone system for the purpose of distributing the programs to kiosks and to computer terminals in homes, schools, and libraries through telephone lines (the Internet).

1986 – 1995: Established and trained a group of editors to develop extensive micro-categories for the business information directory and programmed it in color using a graphics language called NAPLPS. The directory was made available through a dial-up network so people could access it on their personal computers or NAPLPS terminals as a replacement for yellow pages directories.

1993: Incorporated Guinness Telli*Phone Corporation and consolidated all the Guinness projects into the new organization. Then, we filed a Form 10 with the Securities & Exchange commission and Guinness became a public company trading under the symbol TELI.

1996 – 1998: Reprogrammed our local directory systems to a new standardized Internet Protocol and HTML. We completed a comprehensive local directory for Marin County, CA, called Telli Marin and made it available on the World Wide Web.

1998 – 2001: Established and trained a staff of programmers to set up a simple database system to load information into the various micro-categories of the directory and a user-friendly multi-level search system for people to access specific information quickly.

1999 – 2000: Established and trained a staff of editors to

  • Download AT&T listings for Marin County into Telli Marin.

  • Modify the downloaded AT&T entries into Telli’s new expanded list of over 3,400 micro-categories.

2000 – 2001: Maintained a small staff of professional sales and marketing people to develop and test various promotional and community joint-venture programs to generate viewers for Telli Marin.

2000: Since local newspapers would not accept advertising from Telli Marin, the Company launched its own weekly newspaper, which it distributed to all households in Marin (100,000) over an eight-week period in the fall of 2000.

2002 -- 2003: Telli began designing and testing Web 2.0 development systems, including “do-it-yourself” advertising tools to allow people to create information on personal computers connected to the Internet for display on a free basic advertising platform in Telli Marin.

2003: Allowed people to enter their own business, classified, and event listings in Telli Marin with supporting information and graphics at no charge.

2003 – 2005: Telli programmers created the Telli Administrator to simplify the management of entering, updating, modifying, and managing information in Telli Marin.

2005: Telli programmers developed simple-to-use do-it-yourself promotional tools and an automated subscription payment system for advertisers to create their own colorful web-based TelliPages of information for display on Telli Marin’s enhanced advertising platform

2005: Advertising professionals created an eight-week multi-media advertising campaign that ran throughout Marin County from the end of May to the middle of July to determine the most successful and cost-effective means of encouraging people to use Telli to find information.

2006 – 2007: Began distributing various targeted, inexpensive direct-mail tests to assess their effectiveness in familiarizing businesses with Telli Marin’s “do-it-yourself” advertising platform.

Also, we developed design tools to enable Telli Administrators to create colorful advertising banners and a programming system that displays the banners on various category pages in Telli Marin.

2008: Telli discontinued all advertising and promotion to evaluate the following factors:

  • The effect Google had on the number of viewers using Telli Marin.

  • The number of businesses that continued to sign up for advertising subscriptions after finding Telli Marin on the Internet.

  • The results Telli could experience when Telli sites are first established in a new area before being licensed to local operators and without any marketing support.

2009 – 2014: Upgraded Telli software and systems to comply with the latest financial regulations and security standards and developed new simple-to-use Telli advertising software tools for subscribers.

In addition, redesigned the Telli Marin site and reprogrammed the Telli advertising platforms, promotional tools, and Telli Administrator to reside on our servers (cloud-computing); thus making it far less expensive to establish, update, maintain, and operate Telli sites.

Foregoing "traditional" promotion since 2005 was a significant factor in our researching and testing various targeted marketing approaches. Opting not to promote Telli Marin throughout the county, we were able to accurately assess and document the results of the many targeted tests we did to learn the most effective way to

  • Brand Telli in communities as
    • A comprehensive local information site for users.
    • An affordable and easy-to-use targeted advertising platform for businesses.

  • Sell TelliPage professional marketing and Internet development services to subscribers.

FINANCING MARKETING, EXPANSION, AND GROWTH

As we move into areas adjacent to Telli Marin, we believe we can launch successful advertising programs based on the small market tests we have conducted over the years.

  • To generate local advertising revenues, business owners need to see our name frequently throughout their area to believe that consumers know about Telli and use it to find local information.
    Our research reveals that “seeing is believing.” In our market tests to promote Telli, our most successful results have come from posting banners on buses, attending local club and networking meetings, and participating in joint venture campaigns with school district foundations to assist them in raising money to support their schools.

  • To sell advertising to businesses, local sales people need to receive a small monthly income while building their base of subscription revenues.

  • Telli needs to establish sites in new areas on behalf of potential owners so they will have capital to invest immediately in managing and promoting Telli in their communities.

  • To sell a franchise for a Telli site requires Telli to incur significant franchising legal costs and filing fees. Therefore, Telli needs to establish its first few sites on behalf of potential owners and license the sites to them with no “up front” fee while we create successful site models and complete franchising documentation.

  • Major businesses with multiple retail outlets in communities tell us that Telli needs to have sites in a number of areas so it is cost-effective for them to train their store managers to design and launch local advertising programs through Telli sites and oversee the promotions they produce.

It is important for Telli to have sufficient capital ($500,000 minimum) to jump-start its expansion until it can support its growth through its own revenues. See www.telli.com/bridgefinancing.

INITIAL FINANCING AND ROI

Telli has prepared a $2 million Five-Year Convertible Preferred offering with each share paying an annual cumulative dividend of 10 percent, calculated from the date an investor purchases the share.

Telli will stop selling the preferred shares once it can continue to expand through its revenues.

Whether Telli pays dividends annually or lets the dividends accumulate will depend on the amount of capital Telli is able to raise initially. The Company needs sufficient capital to initiate its expansion program and begin generating revenues. Telli will not raise capital through the sale of the preferred shares to pay dividends to stockholders, nor is it legal to do so.

Investors qualified under SEC rules can purchase Series B Preferred Shares at $1 per share and may convert the shares and the accumulated dividends into Common Shares at a 1:10 ratio.

For example, at the end of one year from the date an investor purchases 10,000 shares of preferred stock, for a total purchase price of $10,000, the shares will have accumulated a 10 percent dividend of $1,000. At the end of this first year, the investor may elect to convert his or her investment in the preferred shares into 110,000 shares of Telli’s common stock (10 cents per share).

Once Telli gains momentum and is able to announce successful results from its expansion, it will file a Form 10 with the Securities and Exchange Commission to return to trading its Common Stock on the exchange to provide investors with liquidity. At that time, if necessary, Telli will sell some of its private stock in the open market to pay dividends or buy back Preferred Shares.

Telli anticipates being able to raise sufficient expansion capital initially to generate significant revenues. Therefore, we expect that our common stock, when listed, will begin trading at a price whereby most preferred stockholders will elect to convert their preferred shares into common stock and sell some of their common shares to realize substantial capital gains on their investments.

USE OF PROCEEDS

Once Telli has raised sufficient capital to ensure an ongoing operation, the company will use funds to

  • Exposure: Place Telli advertising banners on buses travelling throughout Marin County.

  • Promotion: Mail brochures and fliers to Marin County businesses.

  • Direct Selling: Contract local professional sales people in Marin County to increase Telli Marin’s subscription revenues and establish a profitable working model for licensees to emulate.

  • Expansion: Employ and train a staff of Listing Editors to begin setting up new local Telli Sites with listings downloaded from AT&T telephone installation records.

  • Growth Management: License the sites to qualified marketing individuals.

  • Shareholder Liquidity: Prepare legal documentation and audits to file with the Securities and Exchange Commission as well as documentation for its market makers to file with FINRA and return Telli to trading its shares on one of the stock exchanges to provide liquidity for our shareholders and raise additional capital if necessary

  • Major Funding: Complete an EB-5 private placement containing economic and due diligence reports to raise capital through an EB-5 Investment program.

  • On-Going Funding: File Franchise Disclosure Documents with the Federal Trade Commission and the Commissioner of Corporations of the various states that require state filings for the sale of franchises and begin selling franchises for Telli mini sites and Telli site geographical areas.

MASTER PLAN REVENUE PROJECTIONS
(Monthly Cash Flow Projections, supporting documentation, and Financials are available.)

Our revenue projections are based on the total number of businesses that become subscribers to Telli local site advertising platforms at $19.95 per month, Telli creative and disign services for a minimum of $295 per TelliPage (20 percent of subscribers), banners at $15.95 per month (20 percent of subscribers), and fees to maintain TelliPages on behalf of subscribers at $50 per month (20 percent of subscribers).

We estimated that 5 percent of the new businesses downloaded to Telli local sites from telephone installation records would acquire advertising subscriptions within a year of being listed.

We based this 5 percent figure on a Telli site local sales represenative selling only 50 subscriptions per month, with another 10 subscriptions generated from within the sales representative's territory as a result of businesses listed in Telli signing up directly through the local Telli site and creating their own TelliPages.

We took 5 percent of total new business that subscribed each year and divided this number by 12 (8.33 percent) to reflect the actual monthly New Subscriber Capture Rate. To these monthly figures, we added the subscribers from the previous month who continued to maintain their monthly subscriptions.

Finally, we added a 2 percent monthly increase to the number of new subscriptions each month from new subscribers not listed with the local phone company who added their own listings to a Telli site as a result of local advertising and promotional programs conducted by Telli, local word of mouth advertising and referrals from Google and the other major search engines.

RISK FACTORS

We consider the following risk factors will affect the ability of the owners of Telli local sites to match the income targets outlined in our projections.

  • Telli site owners and their advertising representatives are not networking sufficiently in their areas to support businesses and fail to meet specific advertising subscription revenue benchmarks.
  • The inability of Telli site owners to find creative designers with the necessary advertising and design skills to create effective, professionally designed TelliPages.
  • Major players in the Internet search and advertising business with substantially greater resources than Telli decide to reorganize their business models and compete with Telli site owners by opening personalized local Internet service offices similar to Telli.
  • Major search engines decide to cease including Telli local listings on their sites.