SLR: SL Reports.Network

Your Virtual Worlds News Source...

Total shares: 7,750,000

Prospectus

Company Tagline

Your Number One Source for SL News in RL!

CEO's Real Life Name

Tim Locklear

CEO's Real Life Location

Oklahoma, United States

Board of Directors

Enniv Zarf, Executive Editor
August Rich, Director
Investor Allen, Director
Terence Mackie, Director
theboi Umarov, Director

Cash on hand

37998

Land owned

26608

Tangible Assets

657500.00

Monthly Income

65000

Monthly Expenses

32500

Welcome to SL Reports: Your Number One Source for SL News in RL!

Dear Investors:

It is with great honor that I offer to you my company, SL Reports. During our first three months of operation as a daily in-world news service, our voluntary-join group membership (one main group and four ghost groups) has grown to over 11,000 members and our website - www.slreports.net - receives over 7,000 hits per week.

Our unprecedented growth has also generated an unprecedented number of paid advertisers, as you can see from our income. Advertisers understand that we reach the largest audience of qualified buyers in Second Life, and are willing to pay for the results they receive from SL Reports.

With growth also comes problems, however. SL Reports at present is struggling to take the business to the next level. Investment will help that. Our short term goal is to have 30,000 group members and 18,000 hits per week by August 1, 2007 - and an interactive new site design.

In the opinion of my staff and me, your investment (based on our amazing history of unstoppable growth) should see a VERY handsome return. We hope you agree.

Sincerely,
Xavier Mohr, Publisher
SL Reports
www.slreports.net

Business Overview

SL Reports is Second Life's premiere daily news service. News - both repost and exclusive - is posted on a rolling basis at www.slreports.net.

Readership/patronage is gained from super-intensive in-world marketing, web banner advertising, keyword bidding, other real life advertising, and geurilla marketing. Readers are continually engaged in the business via our in-world groups boasting a membership of over 11,000 (across one main group and four ghost groups).

Advertisers pay for high-end banners on our site, monthly or weekly, and even by impression in order to utilize our website's amazing popularity. This is our primary source of revenue. We also, however, earn money from specialized marketing efforts, events, and ad production.

Our staff is varied and includes educated persons from different time zones across the world. This ensures near-24-hour customer service and site updating. As well, SL Reports does not employ non-alt, "newbies." All of our staff members are experienced SL'ers with the knowledge and know-how to operate a useful, appealing news service in Second Life.

Business Strategy

Our Strategy is Simple: Spend Less and Earn More

At present, web hosting, tier, loan repayment, and staff salary/bonuses/contract make up most of our expenses. As you can see, we still have an impressive profit margin, but it could be much better. We feel that staff and production reorganization via an extensive influx of capital will help to change this.

Earnings right now are capped by two things: (1) no dedicated sales staff or sales manager, and (2) a limited ad production schedule. By hiring a low-salary, high-commission sales manager, multiple high-commission sales agents, and a salary ad designer, our ability to sell and produce web ads will be unlimited.

In addition, we plan within the next 30 to 45 days to launch a more appealing website with greater user interactivity, a sleeker more compatible design, and more ad space. We feel once the new system is in place with appropriate SEO setup, SL Reports will be a powerful news source in Second Life.

We will be incorporating features such as a user-generated news section, low-cost searchable classifieds as an alternative to the existing systems to be found, extended user profiles, chat, forums, and more.

Our new site will also be capable of running on-site contests and promotions to convert a greater percentage of in-world group members to registered site users.

In addition, we plan on developing and in-world, notecard delivery system that will send specific stories of interest - from selected categories or keywords - to a user without requiring them to log on to the website.

Accomplishing our goal of greater revenue will be gained through intensive marketing and Second Life awareness combined with a marketing push from a dedicated sales team. Use of capital will include the hiring of a dedicated sales manager to prospect new Second Life clients and real-life agency clients, in addition to offering upgrade opportunities to existing accounts and generating ideas for events, special sections, and forward-thinking revenue opportunities. Sales manager will also handle up to six commission-based sales representatives working the Second Life grid to "cold-call sell" new accounts and service existing accounts in exchange for high-percentage commissions.

Additional group membership will be gained through geurilla marketing efforts such as invitation of newly-created avatars, strategic ad placement on the Second Life grid, and other efforts as the situation may warrant. At present, these efforts as-is are bringing up to 1,000 new group members per week to SL Reports.

Additionally, non-grid site traffic will be obtained via web banner advertising and the employment of real-life gaming bloggers. In addition, some keyword bidding will be utilized to entice traffic from web users specifically looking for virtual worlds news and advertising opportunities.

Business Strengths

* CEO has over 15 years rural, suburban, and urban advertising and publishing experience.

* Marketing techniques have proven successful, as anyone can publicly see by researching our group membership - 11,000 members and growing across 5 update groups.

* Dedicated full-time staff of media professionals.

* A Low-Risk, Stable Industry: Media

* Solid, Favorable Reputation in Second Life

* A Unique Product/Service in that it can Operate Independently without the Second Life Grid

Use of Capital

As I have outlined our growth plans already, I will simply post our budget for capital acquired from IPO. Any specific questions may be directed to C.E.O. Xavier Mohr in-world or via email at xavier_mohr@americaneffect.com.

(All Percentages Refer to Percent of Earned Capital)

35% Upgrade of Website, Hosting, Scripting, & Related Items

20% Product/Service Research & Development

20% Recruitment & Retention of Expert Advertising Sales Staff

15% Advertising & Marketing

10% Upgrade of Real-Life Production Equipment

Risk Factors

With any investment, there is going to be risk. However, we are confident that SL Reports risk is significantly lower than most other businesses. Some of the present risks, however, include the following:

* Decline in Popularity of Second Life
(Possible Solution: Format change to cover other virtual worlds.)

* Upgrades in Second Life Service/Capability Making Websites Less Useful
(Possible Solution: Adapt service according to changing conditions.)

* Real-Life Investment in Second Life News by Existing National/International Media Outlets
(Possible Solution: Sell SL Reports for a significant profit.)

Management

* C.E.O. Xavier Mohr has over 15 years real-life experience in the media industry, from editorial and sales to production. He holds degrees in Communications and Sociology.

* Executive Editor Enniv Zarf is experienced in international television advertising and is an acclaimed independent film actor. He holds a Masters degree in an arts-related field.

SL Reports is managed from the top down, with delegation of tasks among managers and staff members. We pay our employees better than most businesses in Second Life do, but leave them free to do their job to the best of their ability.

SL Reports does, however, employ a very strict policy of perfection when possible and professionalism. We look hard until we find the right employees, and get rid of the ones that cannot keep up with our fast-paced environment.

SL Reports employs a policy of fiscal responsibility, taking loans only when needed (or when funds can be used to generate a guaranteed return) and NEVER buying anything that profit cannot pay for. We treat our clients, investors, and even our readers with respect... because it is those people that make what we do possible.

* * *

(DISCLOSURE: Some SL Reports land assets are managed as part of operational finance note by August Rich, SL Reports Director.)