Table of Contents 
  
  
  
   
Directory 
services are an extension of search and include Internet products (White Pages and Classifieds) people use every day. 
  
  
   
Broadband 
services are designed to take advantage of higher bandwidth networks. Our current and next generation applications and 
  
services are targeted at the DSL and cable modem markets, and are designed to create compelling reasons for customers to subscribe 
or migrate to high speed connections. 
  
In wireline, for search and directory services we are paid on a per query basis. We do not expect broadband revenues to be material in the 
near future.  
  
Merchant 
  
Our merchant business area develops and delivers products and application services that are designed to help merchants leverage Internet 
and wireless technologies to attract customers, reduce costs, grow sales and conduct business. These applications and services enable 
businesses to establish an online presence, promote their products and services, and conduct secure commerce using an Internet connected 
device. Our merchant services are branded for leading merchant banks and other merchant service providers who in turn offer these solutions to 
their business customers. Our merchant services are available through a broad merchant reseller channel, including Verizon, one of the largest 
providers of products and services for small to medium sized businesses in the U.S., and major financial institutions such as American Express 
and Union Bank of California. Our merchant services include:  
  
  
   
Payment 
solutions that enable merchants to authorize, process, and manage credit card and electronic check transactions on Internet 
  
enabled mobile devices and personal computers. InfoSpace payment solutions are offered as a private label service to leading 
merchant banks such as Wells Fargo and Union Bank of California and directly to merchants through InfoSpace's reseller network. 
  
  
   
Shopping 
services that offer a private labeled, end to end solution designed to help partners increase traffic, build customer loyalty and 
drive additional revenue through offering a comparison shopping service to their customers under their own brand. This flexible 
  
service can be customized to appeal to a partner's specific target market(s) and can be integrated with customer registration and 
internal loyalty programs. 
  
  
   
Merchant promotions 
is primarily our yellow pages services, and are distributed through leading Web sites and wireless carriers over a 
  
wide range of fixed and mobile Internet connected devices, offering merchants expansive networks over which to promote their 
products and services. 
  
  
  
  
Hosting 
solutions that provide merchants and Web developers with a flexible and scalable solution for establishing and building secure 
Web sites. 
  
We generate revenue in our merchant business area from the following sources:  
  
  
   
Payment transactions 
include our payment authorization and shopping services. In payment authorization, we earn revenue from our 
merchants through set up fees and from monthly subscription fees, which may include a certain number of monthly transactions. As 
  
merchants exceed their minimum, we receive additional revenue per transaction. For shopping, we generally receive a percentage of 
the total dollars processed in each transaction, as well as a number of basis points for shopping transactions completed on certain Web 
sites. 
  
  
  
   
Merchant promotions 
, which are primarily our yellow pages services, generate revenues on a per query basis. 
  
  
  
  
Merchant hosting 
revenues are generated on a monthly basis from subscription fees and monetization of users to the merchant's Web 
sites. 
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