The below examples will help clarify the Financial Forecast spread sheet and illustrate that the 5 year return of £122, 936, 828 is a very low and most defiantly achievable estimate.

Example 1, “Out the Box” (Africa Concierge, below - top right)

A current example of our websites database linking within our network is www.ExperienceAfrica.com. Experience Africa has been set up and is an accredited tour operator, operating in the mid to high end African tourism sector, generating revenue by earning commission, when they book travel arrangements for their clients. Commission received is from 25% to 50%, a 2 week holiday including a safari generates between £ 5,000 to £25,000.

Have a look at www.AfricaConcierge.com.  This has been made for SOTHEBY’s REALTY Cape Town. This website is a duplicate of the Experience Africa website except company details, colours, logo & home page text.

This is the easiest duplication method and can be done automatically. Currently this website does not link or network with the main SOTHEBY’s SA or international websites. All be it SOUTHEBY’s corporate have asked for further meetings.

“Out The Box” software users are recorded as generating one twentieth the income of a “Data Linked” website, generating SIENNA only £ 1124 a year. In reality Africa Concierge will do far better, but my average financial estimate takes account for “Out the Box” software users that will start to use the network but not continue.

As soon as SIENNA 1.01 is developed, the out the box software will be available by free download. Unlike Africa Concierge, new users will have a number of look and feel options or “skins” so there new website looks original.

One last point is that I expect a number of “Out the Box” affiliates who have there own websites, will wish to “Data Link” or “Web Feed” after they get to know the system.

Example 2, Web Feed. (Dogon Group, below - middle right)

CEO Denise Dogon is considering joining the network by adding SIENNA’s Hotels and Safari’s to her main website. Denise is not currently interested in uploading her company’s properties on to the network, and hence The Dogon Group will become a “Web Feed” affiliate. (We are feeding data to them, they are not supplying content back.)

Denise’s current website pictured middle right has a good example of how we will integrate into their and other websites.
You will notice her current property selling website www.DogonGroup.com  has a link to her property renting website www.DGRentals.com . Website visitors seamlessly connect between the 2 sites. We will add a new site www.DGTravel.com which will offer African then global holiday options. The DG web sites top menu bar will include the new DG Travel tab.
Denise suggested that she would need to expect a minimum return of £100,000 a year. I expect given personally support, branded magazines and a good presence in S-World she will surpass that figures by year 2.

In the financials a “Web Feed” web sight each new affiliate company is estimated to make of £11,237 turnover per year and in turn generate £5,618 for SIENNA, but with the Dogon Group expecting £100,000, “Web Feed” businesses actual income, compared to the financial forecast will in many cases  see turnover increase nine times higher than the amount recorded. This said like the “Out the Box” software I expect some companies not to succeed with the system straight away. I have allowed for 1 in 2 users not succeeding so, on average “Web Feed” affiliates can be expected to create 4.5 times the amount I allowed for in the Financial Forecast.

One last point I expect the Dogon Group to upload there properties and become a “Data Feed” partner when they get used to the system.

Example 3, Data Linked. (LEO TRIPPI, below - bottom right)

LEO TRIPPI is also considering joining SIENNA’s network, by adding a more comprehensive high end African selection of Villas, Safari’s, Hotels and Real Estate to there current website.

I’d expect a dedicated travel company such as LEO TRIPPI, to make at least 20 or so additional bookings a year generating £200,000 or so. Far higher than the 3 Cape Villas bookings recorded as generating £22,475 in the Financial Forecast. £22,475 is the figure I have used as average earnings for”Data Linked” companies. As can be seen by these examples actual earnings should be far higher, about 9 times higher.

 (The £22,475 is highlighted in column “5C” of the “financial forecast spreadsheet “as R125,000, this figure is half the company’s forecast  earnings of R250,000 due to SIENNA only making half the amount of what our affiliates charge.)

However that’s not the only revenue stream. What makes the difference between a “Web Feed” affiliate and a “Data Linked” affiliate, is that “Data Linked” company’s have the ability to place their own stock on the network for others to book.
The condition will be that SIENNA is offered a minimum 30% STO discount, where she keeps 10% and advertises LEO TRIPPI Ski Chalets at a 20% STO discount.

One concern raised has been affiliates using Sienna as a reference only, preferring to book with the actual supplier and ask for a better price. We need to let supplier and buyer communicate as without that the customer may suffer through lack of product knowledge. I have many ideas how to stop this. A preferred supplier option for us to half our commission for companies that develop close relationships. Generally trying to give a 25% STO discount not 20%. (VIRGIN HOLIDAYS will help enormously here.) But the most important security measure will be having our affiliate companies communicating through S-World.

Having LEO TRIPPI upload their properties on to our site is good, but not ideal, updating prices and details are often forgotten. I have allowed for a large amount of Data Imputers and researchers to help with this, but the prize is tacking an API feed directly from their database. And this is what we want to do with as many “Data Linked” affiliates as possible. A good number of affiliates are very happy to work in this way, such as the RAZOR property management database. RAZOR wishes to join the SIENNA network and add live booking options for 2,000 or so Villas across South Africa, we have already agreed a preferential rate of 30% STO discount.

The only trouble I have encountered, has been trying to convince these companies to pay for the database linking (via API), it’s not a deal breaker, but not optimal for our networks speedy growth. So I decided that we must bare the set up costs, certainly at first. This has been accounted for in the financials (“1,I” on the Expenses and Profit and loss spread sheet). I have allocated 200 hours of programming for each company. This I’m assured is more than enough in most cases.

After the set up time and effort I expect few “Data Linked” websites to drop out, some will do better than others of course but in general “Data Linked sites should do far better than the £22,475 recorded in the financials. We have the potential to add another Zero to the £122,936,828 five year profit forecast.

Example 4. Affiliate companies customising there websites. (For all affiliate website users)

In most cases the look and feel of “Data Linked” and “Data Feed” sights will mirror the look and feel of there current website. They may of course be unhappy with their current website and fully integrate into SIENNA, with a new website to better match their new cooperate identity. I can see this happening often.

The different web site’s content however will vary, to compliment our affiliate company’s requirements.

The first affiliate’s phase of companies targeted will be offered a full compliment of Southern African options. Most will choose to customise there web sites display. Such as a Real Estate agency showing Hotels, Safaris and there Properties, blocking other Real Estate agents stock. Another example would be “SINGITA” Private Game Reserve, choosing to display their handpicked selection of, Luxury Hotels, Jets and other trusted Luxury Travel Services, but not display other game lodges.

I know the global Villa Rental Industry well, I’m respected for my advancements and accolades. Our 2008 production “CAPE VILLAS” Coffee Table Magazine, distributed by Conde Nast Traveller impressed many.

After a comprehensive African offering is finished, we will concentrate our efforts on a Global Villa Rental and Property Sales Network. Fifty or so companies from Conde Nast well ranked holiday spots, displaying their inventory collectively throughout the SIENNA network.

Once the Villa network is created, it can be offered as a complete addition to our affiliate’s currently provided African web content. Or they can pick one new territory at a time. They may just want to stay in their location and add new services, a villa rental agency offering Hotels for instance.

Most affiliates will do very well, these companies already have a good client base and popular websites, offering their new website visitors and previous clients “African Travel” and “Global Villa” options in new locations will generate many new enquiries for them.

To further aid our affiliate businesses, with each new territory or business type we release, we will offer free dedicated magazine for them to distribute to their clients. New trees will need to be planted to balance the ecosystem. I understand and agree with VIRGIN’s position on the use of paper, but I currently advocate the greater good of making the Magazines. These magazines will significantly speed up and increase our affiliates turnover and whilst not essential are certainly helpful.

These magazines will be similar to the Cape Villas magazine, for reference I am sending some to your office, they should arrive later today.

These magazines will be free and either have a generic cover, where agents stick there details on the back page. Or they will be individually branded, “LEO TRIPPI’s Africa” for example. These magazines will impress their clients and give the LEO TRIPPI agent a far greater chance closing the sale. Sponsorship of these magazines makes cost negligible

Soon after the Global Villas network is created, I would expect our Global Distribution System (probably Galileo) to be linked and our data in putters and researchers uploading enough content to have good coverage in the top 50 or so Conde Nast rated tourist destination for Hotels, Car Hire and Flights.

Soon after the Global Distribution System that provides the Hotel, flight and Car Hire information will mix content with the Alternate Distribution Systems that hold more specialised Venues and Transport such as, Villas, Game Lodges, Jets, Luxury Car Hire, Train & Water Experiences.

From here we expand our destinations coverage to cover the country that it is in. At the same time we start to cover new locations in different countries, until we have a truly global network. This I’d hope to have within a year and a half, maybe sooner.

My Key phrases for the web site customisation and administrative functions are “Ease of Use” and “Fun”. Integrating, S-World, the management and resource gathering games into the tutorials will make it “Fun”.  Making the most complex of administrative functions, based on current management games for ages 14+ will make them easy to use. I’d also like to introduce simpler versions of the Sienna Software to schools, so children can start learning from 5 years old. There are many other teaching integration options that will be explored later.