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A Look At CrowdGather’s (GRWG) Erox(R) Proof Of Concept

|Includes: CrowdGather, Inc. (CRWG)

CrowdGather Inc. (OTCBB: CRWG) is a leading developer and operator of online forum-based communities that combines social media and content to compete alongside companies ranging from LinkedIn Corporation (NASDAQ: LNKD) to IAC Interactive Corp (NASDAQ: IACI).

The company provides a highly interactive and informational social network for members, a management and revenue-sharing resource for third-party forum owners, and a largely untapped advertising network for marketers worldwide.

To test the potential of this social network, the company has teamed up with Human Pheromone Sciences Inc. (OTCBB: EROX) to launch its new Erox® fragrance.

Science-based Product with Celebrity Endorsement

CrowdGather's Erox® fragrance includes two patented human pheromones and a new patent-pending, organic pheromone-like compound derived from sea coral. These ingredients combine to create a fragrance that has been proven to cause feelings of confidence and well-being, as well as an increase in arousal, excitement, sensuality and social warmth.

The fragrance is being endorsed by reality star, popular television host and self-proclaimed lover of geekdom Adrianne Curry in a new social media campaign. The company will market the product through its affiliate market channels and launch it through the use of social media and forum communities that it owns and operates.

A Proof of Concept to Validate Its Powerful Networks

CrowdGather has developed a powerful advertising network for marketers around the world that remains largely untapped. The launch of Erox® is one way that the company aims to demonstrate the value of this expansive network to advertisers. Ultimately, this should help to drive higher CPMs and unlock real value for shareholders.

The company may also pursue the standalone potential of this business model. With its powerful network, the firm can just as easily partner with other companies and launch products along any number of different verticals. This could also dramatically increase its top and bottom line without having to rely on outside sources of revenue.

Results are Already Better than They Appear

During its fiscal 2012, CrowdGather reported just a modest increase in revenues on the surface, but there was a large shift happening below the surface. The company generated more than half of its revenues from its acquisition of the Adisn ad agency during fiscal 2011, but this focus changed to its core business of monetizing forums in fiscal 2012. The result is a higher-margin business that has been rapidly growing to replace the low margin segment that's being phased out.

And during the second quarter ended October 31, 2011, the company generated between 230 and 235 million monthly page views across all of its properties, compared to just 80 to 90 million during the same period in fiscal 2010. These traffic figures represent the pent-up potential in its expansive advertising network that it hopes to capitalize on over the coming quarters.

To learn more about CrowdGather, please see the following resources:

  1. Company Website
  2. Erox® Website
  3. Latest SEC Filings
Disclosure: The subject security is a client of Accelerize Financial. For full financial disclosures for all Accelerize Financial clients, please