Segment Analysis

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements

Segment Analysis

Note 13 - Segment Analysis

In 2011, management reorganized the operations along two new operating segments – Performance Marketing and Web Properties. Prior to 2011, our two segments were classified as Exchange and Direct segments

We are an Internet marketing services business separated into two reporting segments: Performance Marketing and Web Properties. The Performance Marketing Segment includes both the technologies and networks required to facilitate B2B transactions. The Web Properties includes both the products and websites required to market to consumers online including our owned and operated websites, a lead generation business and a data collection and distribution business.

MSA, RESO and iLead (see Note 10) are reported as discontinued operations in the consolidated financial statements for 2011 and 2010.

Listed below is a presentation of net revenue, gross profit and earnings (loss) before interest, taxes, and depreciation and amortization, and stock based payments for all reportable segments for the three and nine months ended September 30, 2011 and 2010. We currently only track certain assets at the segment level and therefore assets by segment are not presented below. The Corporate category in the “Earnings (Loss) before Interest, Taxes, Depreciation and Amortization, and Stock Based Payments” from continuing operations table consists of corporate expenses not allocated to any segment. Note that the “Earnings (Loss) before Interest, Taxes, Depreciation and Amortization, and Stock Based Payments” is not a measure of performance defined in accordance with GAAP.

Net Revenue by Industry Segment

	Three Months Ended September 30								Nine Months Ended September 30
	2011				2010				2011				2010
Segment:		Amount	Percent			Amount	Percent			Amount	Percent			Amount	Percent
Performance marketing	$	5,349,220	65.2	%	$	10,630,826	74.5	%	$	18,723,897	64.1	%	$	26,017,902	74.4	%
Web properties		2,853,896	34.8	%		3,639,459	25.5	%		10,485,749	35.9	%		8,956,467	25.6	%
Total Revenue	$	8,203,116	100.0	%	$	14,270,285	100.0	%	$	29,209,646	100.0	%	$	34,974,369	100.0	%

Gross Profit by Industry Segment

	Three Months Ended September 30				Nine Months Ended September 30
Segment:	2011		2010		2011		2010
Performance marketing	$	1,421,929	$	2,743,390	$	4,610,714	$	6,387,973
Web properties		2,145,279		3,072,761		8,492,745		7,187,559
Total	$	3,567,208	$	5,816,151	$	13,103,459	$	13,575,532

Earnings before Interest, Taxes, Depreciation and Amortization, and Stock Based Payments by Industry Segment

	Three Months Ended September 30						Nine Months Ended September 30
Segment:	2011			2010			2011			2010
Performance marketing	$	814,500		$	2,246,111		$	2,869,033		$	4,839,682
Web  properties		257,156			710,874			189,768			2,117,307
Corporate		(984,076	)		(1,719,108	)		(3,102,239	)		(5,582,868	)
Total	$	87,580		$	1,237,877		$	(43,438	)	$	1,374,121