WRAPmail releases Q2 Financials and Management Analysis

WRAPmail Q2 Revenue grows 141% from Q1

Aug 15, 2012, 10:58 ET from WRAPmail

FORT LAUDERDALE, Fla., Aug. 15, 2012 /PRNewswire/ -- Considering that WRAPmail (WRAP) just moved from a free service to implementing various revenue models, we are satisfied with the Q2 numbers. Neither the CEO nor CTO is currently taking any salary. Running operating costs are thus low at about $10-15K/month. The future revenue growth will come as a result of growth in free users where we can sell and display 3rd party advertising and in licensing fees from PRO+ and Enterprise solutions.  Obtaining new funding is crucial for this expansion. WRAPmail had client number 6,000 sign up very recently. Considering we had about 1,000 signups from 2006 through 2010, we are excited to have seen this number grow 6-fold in about 18 months. Full report: http://www.otcmarkets.com/stock/WRAP/filings.

Revenues and Revenue models:
We reported for Q1 that we have moved from a free service to a three-prong revenue model:

  • WRAPmail PRO: 3rd party advertising revenue from WRAPmail's own advertising network and partner network(s). WRAPmail is the only company in the world that offers 3rd party advertising in regular emails.
  • WRAPmail PRO+ and WRAPmail Enterprise: License revenue
  • WRAPmail Super Affiliate program revenue


About 300 billion emails are sent every day world-wide. We conservatively estimate that 90% of these are SPAM or Bulk emails leaving a potential market for WRAPmail of about 30 billion daily one-on-one emails. All free users emails contain a minimum of six 3rd party advertisements. Users who do not want 3rd party ads pay a license fee for PRO+ of $50/user/year.

The concept behind WRAPmail (WRAP) is to utilize the facts that almost everyone has websites, social network site(s) and also sends emails every day. These emails can become complete marketing tools and help promote, brand, sell and cross-sell in addition to drive traffic to the website and conduct research. WRAPmail is available for free (with 3rd party ads) or for a small license fee at www.wrapmail.com. No routines change as users simply download a toolbar or routes emails via Google or WRAPmail's servers.

WRAPmail also helps search for missing children with every email sent by free users incorporating an RSS feed from the Center for Missing and Exploited Children – see http://www.huffingtonpost.com/rolv-e-heggenhougen/finding-missing-children_b_1540866.html

New clients:
WRAPmail had over 1,000 new PRO and PRO+ signups in the first half of 2012 and also has signed 3 Enterprise clients so far in 2012: RE/MAX KY, Wall-Street.com and The Automotive Resource Network.

New technology and design:
WRAPmail has released quite a few new solutions and designs so far in 2012 with the main focus being ease of use and simplicity.

We have also been very successful in our PR efforts and specifically want to mention the article published in the Huffington Post about how WRAPmail helps in the search for missing children.

WRAPmail Solutions:

  1. WRAPmail PRO: Free solution with 3rd party ads.
  2. WRAPmail PRO+: Shared solution, $50/user/year, no 3rd party ads.
  3. WRAPmail Enterprise: Dedicated solution, $3,500/year plus $40/year per user.

Premade WRAPS:
More than 200 premade templates are currently available for major Network Marketing/Affiliate  Marketing/MLM companies, Real Estate Agents, Business, Scenery, Sports, Holidays and Animals with Social Network Interface and personalization (image, text and links).

Clients can also make 100% custom WRAPS in the WRAPmail dashboard using the WRAPmaker.

Advertising Network:
WRAPmail has its own advertising network where users can advertise in other users' emails. The concept is a mix between similar models from Facebook and Google but the difference is our focus is email and not websites. An advertiser can have a free account and there's no usage requirement to become an advertiser. Advertisers simply create their ad in the WRAPmail Dashboard; pick City, State, Country and/or Industry of other users for placement of ads. WRAPmail also has a partnership with Market Leverage for utilization of its advertising inventory.

Affiliate Programs – "Make money with every email you send anyway"
Any user can sign up for one of our affiliate programs and earn up to 25% lifetime commission. Commissions are earned on any business delivered to us by the affiliate but the main focus is to share the 3rd party advertising revenue generated from the regular emails sent by our users.

WRAPmail is a Google Apps Vendor and also compatible with Google Analytics and Google Chrome/Gmail.

WRAPmail will seek to raise up to $5M in 2012. Uses of proceeds are mainly Marketing (60%), Technology (20%) and Management/Enterprise Sales (20%). Marketing & Sales have so far been handled by the CEO who has been very successful but limited in time and reach, hence the need for Marketing funding to make Businesses, Individuals and Advertisers world-wide aware of the opportunities that WRAPmail presents.

Forward-looking statements and risks and uncertainties
Matters discussed in this press release contain forward-looking statements. The words "anticipate," "believe," "estimate," "may," "intend," "expect," and similar expressions identify such forward-looking statements.  Expected, actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. Forward-looking statements are subject to a number of risks and uncertainties, including but not limited to, risks and uncertainties associated with, among other things,  the impact of economic, competitive, and other factors affecting our operations, markets, products, and performance.  For more complete information regarding our business and financial condition, you may access our filings at otcmarkets.com.  The matters discussed in this press release should not be construed in any matter, shape or form as indicative of the future value of the Company's common stock or its future financial condition.

WRAPmail Investor Relations:
Phone: (954) 591-8742