QUESTIONS AND ANSWERS WITH NICK HANAUER

HOW ARE YOU INVOLVED WITH MARCHEX?

I'm the Vice Chairman and a large shareholder.

HOW WOULD YOU DESCRIBE WHAT THEY'RE UP TO?

Our thesis is pretty simple: Roughly $50 billion of annual offline media is explicitly targeted by branded, national, and local advertisers to generate phone calls (think Yellow Pages, Local Print, Radio, etc.). We believe the evolution of the mobile market (and other consumer communication technologies, such as VOIP) creates huge new growth opportunities for these advertisers and that budgets will shift as a result. We also believe that the monetization event best suited to connecting advertisers to customers in a mobile environment is the call (not the click).

We describe Marchex as a Digital Call Advertising company - we're focused on connecting advertisers directly to consumers over the phone when they are ready to buy and then providing advertisers with analytics to better understand the performance of their spend. We do this through our digital call marketplace where we connect a network of more than 100 channel partners (which includes some of the largest mobile carriers) to our hundreds of thousands of advertising customers who are buying calls. Our business model is performance-based (we get paid by advertisers on a per call basis (Pay-for-Call)).

WHAT MAKES MARCHEX SPECIAL?

Huge (disruptive) market opportunity + very talented team + very focused. Seriously, over the last few years this team has totally transformed their business to focus on connecting the intersection of mobile and the digitization of local advertising. I've been around digital advertising since the earliest days... and am VERY excited about what Marchex is doing.

WHAT ADVICE DO YOU HAVE FOR FOLKS IN SEATTLE CONSIDERING WORKING AT STARTUPS, SMALL CAPS, AND FORTUNE 500 TECH COMPANIES?

Don't settle. Work on something you love and with people who are crazy and talented enough to make it happen - this is where you'll learn the most and have the most fun.