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| IncrediMail
Ltd. has been profitable since 2001. It is part of IncrediMail’s marketing strategy to offer all Internet users the basic version of IncrediMail free of charge for an unlimited amount of time. This approach has led to a significant viral nature and has subsequently created a user base of over 50 million registered users worldwide within a relatively short time frame. IncrediMail then uses its marketing abilities to convert the free users into paying customers by suggesting upgrades to IncrediMail Premium or any of the other products and/or services the company has available. While IncrediMail has advertising revenues, sales of IncrediMail software products and Internet services are the majority of the company’s income. In fact, IncrediMail initially offered 3 products and over the past 4 years has increased its product offerings to 10. From the beginning, IncrediMail has pledged to respect its users’ privacy and to maintain a non-aggressive form of advertising on the web site and in the email client and continues to do so. |