The Connector Between Social Media and Return on Investment

Unless you’re a celebrity or well-known personality, what exactly does it mean to have a fan?  Have you been misled into thinking that someone who clicks on ‘like’ is your true fan?  Has this even tempted you to sign up to the sites that offer to ‘sell’ you fans?  If so, then you still don’t understand social media and how to maximize its potential and even monetize the people who have, on their own volition, decided to follow you.

Below is an image taken from FanPageList.Com.  This shows the top 12 fan pages on Facebook, in terms of number of fans.  Take a good look at this list.  Apart from Facebook, Zynga and YouTube the remaining nine fan pages all have ‘celebrity’ appeal.  The people following these nine pages are true fans.  What all 12 have in common is mass interest.  Whether it’s the Harry Potter movie, Shakira, Family Guy, Christian Ronaldo or Facebook, people are truly interested in seeing and receiving updates relating to these iconic pages.  The value given to ‘fans’, is the personal connection to their favorite singer, footballer, game or social network.  The same is true and even more relevant for Twitter.  But the key to this is the belief that ‘fans’ are being offered something that is valuable to them.

The Facebook fan page has over 60 million fans.  What do they get?  Insights into their favorite social network.  The first thing they are presented with is interesting and relevant information.  Memology 2011 offers fans the top ten global topics on Facebook.  This ranges from the death of Osama Bin Laden to the Royal Wedding.  It also shows the most shared articles on Facebook in 2011.  The page does not try to get anything from their fans.  It just gives the fans more information about Facebook.

Eminem, with over 52 million fans, also gives without expecting.  This page rewards loyal fans with videos and music and even a Facebook game application called ‘Bad Meets Evil’.

Television show Family Guy gives fans the opportunity to vote for their favorite character.  This gives fans the feeling that they are being listened to, and they are.  Polls are a great way to interact with fans and find out a little more about them in an unobtrusive way.

However, if you’re not an iconic figure, a famous movie, a sports star or a social network, why would someone even consider becoming your ‘fan’?

Social media is a two way street.  This is why there’s such a vast difference in mind set between conventional advertising channels and social media advertising channels.  It’s also why so many mistakes are made regarding expectant ROI.  As it stands right now, there is no ROI in acquiring new fans alone.  It takes time to cultivate followers into fans and only then you will be able to monetize your fan base.

It’s all about giving before expecting.  Journalists and news publications give content that is considered valuable to the people reading it.  Games give enjoyment to the people playing.  Only once a significant enjoyment level is reached, fans are prepared to make a financial contribution to take their ‘play’ to a new level.  For games it’s the difference between freemium and premium.  People first have to understand and desire the freemium before they opt-in to the premium.

Exactly the same tactics can and should be applied to selling anything within Facebook.  Here are the steps to take in order to successfully promote your products or brand on Facebook:

  1. Fan Acquisition
    For most brands this would start off with an advertising campaign using Facebook ads.  Define an appealing offer.  A compelling reason for someone to ‘like’ your page.  Then, once momentum begins move on to step 2.
  2. Be a Giving Brand
    Give something of value to your fans.  Whether it’s exclusive gossip, participation in a poll that your fans will feel part of or access to an exclusive VIP section of your page, give something for nothing.  Please note, offering a discount does not count.
  3. Measure Engagement
    Take another look at the graphic above.  Each statistic displaying the ‘fan’ count is followed by ‘Talking About’.  When you have more than 10% of your ‘fan’ base talking about you, you are approaching the time to start monetizing your fans.
  4. Exclusive Deals / Flash Sales
    By the time you are ready to run a deal or flash sale you should already have a solid fan base with more than 10% talking about you and what you have already given to your fans.  When you do make the decision to run an exclusive deal don’t hold back in telling your fans that they are receiving this deal just for being a fan.
  5. Attaching Viral Discounts
    For every fan who takes up an offer on Facebook, you should have a system to reward them.  This reward system should be twofold:

    1. A reward for their transaction
    2. A reward if they share (this can be a tiered reward system based on number of shares)

The result of this is a successful word of mouth marketing campaign, also known as a ‘refer a friend’ program.

  1. Keep the cycle going and don’t stop.

This is the full cycle for selling and continuing on Facebook.  Every company trying to put key performance indicators (KPI’s) to their social media campaign should try these:

i.            Cost of a fan
If an advertising spend is $1,000 and 2,000 fans came in as a result of the campaign, but an additional 500 people became fans as a result of the 2,000, then $1,000 was spent to acquire 2,500, making the cost of a fan $0.40.

ii.            Cost of a fan talking about your brand
Fans talking about your brand are more valuable, but also cost more.  If 10% of your fan base are talking about your brand, that 250 fans.  This would put the cost of this type of fan at $4, based on the figures quoted above.

iii.            Cost of Fans purchasing straight from the offer.

iv.            Number of Additional friends of fans who purchased from the ‘word of mouth’ program.

There are additional KPI’s that can measure the full success of social media campaigns.  But, based on the above ideology, not everything is free!

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Targeting Trendsetters to Spread Word of Mouth Advertising

With the development of social media tools which enable brands to interact with their ‘Fans’, it was just a matter of time before the same principles were applied to advertising and acquisition.

While running a contest for the worst looking website, in order to promote the services of a young and energetic web design company, the team behind Trendemon began to understand the true power of ‘Word of Mouth’ marketing.

Speaking to CommerceOnFacebook.Com, Avishai Sharon, CEO and co-Founder of Trendemon explained how, after mentioning the contest to a leading hip-hop artist who then wrote about it and shared his thoughts with his social media followers, the contest landing page received 4,000 visitors in the space of one hour.  The need to spend money on advertising was no longer necessary and the seed of how successful ‘Word of Mouth’ social marketing could be accomplished was firmly planted into the foundations of Trendemon.

Trendemon is making inroads into the world of social advertising.  Basing the principals around social psychology and trendsetting influencers, they are tapping into a whole new world of social customer acquisition.  The offering is comprised of an interface which links directly to community leaders and trendsetters.  In the past, where advertising networks consisted of advertisers and publishers, social advertising with Trendemon consists of advertisers and community influencers.

The people who influence their followers can choose which offers to share with their community.  They can be rewarded based on these actions and can even choose to share the reward with their communities.

The technology aspect of the equation is twofold.  Firstly, analysis of trendsetters and their audience to create channel relevancy and secondly, matching campaigns to relevant trendsetters.

“It’s more than just technology,” stated Avishai “it’s understanding the human algorithm.  More than just an announcement of an offer, it is conversation dominance.”

In short, trendsetters are followed.  What Trendemon have created is a way to identify trendsetters within their communities and offer this influence in a natural way to advertisers.  Unlike a celebrity endorsement within a televised advertising campaign, this form of ‘celebrity’ endorsement is a much more personal and focused interaction.  This is the evolution of social media for business.  It is also easier to see the direct results of ROI in relation to social media interaction, using the Trendemon dashboard.

Grey Group has already seen the value in this type of advertising and has already become one of the first clients to sign up for access to the Trendemon interface and advertising services.

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The Key to Successfully Selling on Facebook

Imagine you’re a brand.  You want to have direct contact with the people who buy your products.  You want to know what they want.  How much they are prepared to pay for your products.  And who is recommending your products.  You want to identify your brand advocates and ambassadors and reward them accordingly.  You also want to be up-to-date with buying trends and therefore offer group deals and even customer initiated group deals.  All of this is now possible, but only in one place.

As a brand, selling directly and maintaining a direct channel of communication with your customers may seem a little alien.  It may also conflict with your distributors.  But what if you can give each and every distributor their own online channel of social communication and the ability to sell your products directly from this channel?  As a brand working with distributors you need to be able to set revenue percentages for sales and give your distributors an interface to view sales and commissions.

This is exactly what Panasonic Israel has done using the f-Commerce platform developed and supplied by SortalPanasonic Israel has over 25,500 fans on Facebook.  Therefore, from a common sense point of view, it’s just logical to be able to interact, learn a little and reward the consumers following the Panasonic brand in the Israeli market.  On top of that, Panasonic distributors also have exactly the same tools to utilize and leverage the power of selling on Facebook.  This is already being used by Future Audio Video Ltd, a smaller distributor who is now able to sell Panasonic products directly within Facebook.

Up until now, Sortal have been quietly, but confidently developing their f-Commerce solution.  After signing up a number of high profile clients within the Israeli market in 2011, Sortal are set to offer and promote their fully tuned solution to the rest of the world in 2012.

Sortal’s model is geared towards enterprise clients.  Each customer receives their own custom made, separately hosted application.  Built using the solid foundation of e-Commerce platform Magento, Sortal’s model is simple and focused.  They are looking at working with clients who have already budgeted for selling in Facebook and understand that uploading a few products to a fan page in the hope that items will sell themselves is not the way that commerce on Facebook will work.  Sortal clients must be serious about social media.

Sortal offer features that can already be found in the marketplace such as:

  • Group Offers
  • Offline Coupons
  • Purchasing Within Facebook

They also offer features that have yet to be seen or completely utilized within the social shopping stratosphere:

  • Full featured social loyalty program, including a points system for identifying brand ambassadors
  • Unlimited stores for distributors / affiliates based on Brand’s partners and resellers
  • Gifting – where the recipient is prompted to complete address details
  • Customer initiated group offers
  • Bargaining – which allows customers to name their own price for items

Additionally, being built around the Magento e-Commerce platform, all Magento functionality can be found within the Sortal Facebook store.  These features include:

  • Full account dashboard for customers and merchants
  • Ability to capture emails and send newsletters
  • Run in-store polls
  • Customer wish lists

If f-Commerce has been slow in 2011, part of the problem has been too many providers offering instant solutions to sell within Facebook, but not defining the methods.  The true success of f-Commerce depends on the actual selling within Facebook.  Selling in Facebook is not rocket science, but it is different to conventional online retailing.  Customers do not currently go to Facebook to make purchases.  However, given access to exclusive rewards and the chance to directly communicate with their favorite brands and retailers, will see the trust and purchase levels increase.  Cleverly implemented loyalty programs will keep customers returning and increase the conversion rates on sales.  Brands and retailers, whether big or small, who understand the importance of the investment in terms of both time and money in social media, will be among the first to experience success with social shopping on Facebook.  In short, brands who are able to listen to their customers and respond accordingly, will succeed.

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The Formula for Successful Social Commerce

With less than three shopping days to go until Christmas, retailers are starting to notice an increase in shoppers coming from either Facebook based catalog sites or deals promoted within Facebook branded pages.

Social shoppers have already become savvy on fan only, exclusive discounts.  According to a recent comScore consumers have already spent $30.9 billion in online purchases so far, this holiday season.

Without a doubt the contributing factors in the rise of online buying are convenience, 24/7 accessibility, less time consuming at the point of purchase, no queuing for the best deals and in most cases, free shipping.

Well known stores such as J C Penney, Kohls and Macys have all utilized their Facebook presence to increase their online sales this year.

In our opinion this is just the start of brands beginning to really benefit from their of use social media around holiday times in order to heighten their brand visibility.   As we’ve said before there are three crucial elements.   Those elements are engagement, interaction and a captivating offer.  The true formula behind successful social commerce.

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Marketing Tips for Small to Medium Sized Brands with Facebook Stores

Initial Fan Acquisition

Unless you have previously run marketing campaigns for your brand’s Facebook fan page or you have had a fan page for a while and have made an effort to engage and interact, the number of fans you begin with will be relatively low.

In order to acquire new fans and increase the growth of your Facebook fan page, it will be necessary to run paid advertising using Facebook ads.  Here are some key points to bear in mind when running the paid campaigns in Facebook.

  • Set a budget
  • Set a goal
  • Always check the cost per acquisition of a new fan (cost divided by number of new fans)
  • Make adjustments to targeting in order to lower the cost of acquisition
  • Target according to fans who will potentially become paying customers
  • Begin instantly communicating with new fans

It is important to realize, even at an early stage, that you cannot just grow your fan base and expect to make a sale.  Additionally, paid advertising can be run directly in Facebook.  Therefore there is no need to find a storefront provider based on their ability to run ads from their admin interface.  This is just an extra revenue stream for the provider and is of little benefit to your brand.


From the moment your brand begins to acquire new fans it is imperative to interact with them.   Interaction and engagement between a brand and its fans involves building a relationship that involves getting to know a little about each other before any form of selling can take place.

Run contests, ask questions, show polls, give relevant and interesting information to the fans.  Find out a little about them and share ‘exclusive’ information with them about your brand and about you.  Don’t hide behind your brand.  Use a real name and a real identity and become the ambassador of your brand.

There are many free or low costing apps that can be used to interact and engage your fans.  Always have a plan of action for engagement.

Identify Your Key Fans

Knowing who amongst your fans are social influencers are key to the success of your Facebook store.  If your store front provider does not provide this key data, perhaps you are with the wrong social store provider.  There are 3rd party applications which, for a small monthly fee, can be integrated into your Facebook fan page and analyze who your brand influencers.  Extole provides a whole suite of social analytics built to identify your potential brand evangelists.

Make It Viral

So you’ve heard about how easy it is to market on Facebook but, unless you follow the above steps, you’ll find yourself stuck in a dead end and wondering where to go from there.  Making something viral doesn’t just happen on its own.

By this time, you have got to know your fans a little, seen who can potentially help spread the word about your brand and have started to build a fan base.  Understanding what goes viral and why is the key to watching something get spread by ‘word of mouth’.  From a great discount to a one day flash sale offering genuine bargains these are the type of online deals that go viral.  Give these deals a kick start by offering additional reductions to your identified brand evangelists to spread the word.  Don’t forget to keep measuring the success of your promotions.

Analyze and Optimize

Commerce on Facebook is still in its infancy.  The only proven data out there are case studies from large brands that have invested quantities of time and money to achieve results.  What is known at this stage is that flash sales and big discounts work well with social media.  Every time your brand makes a promotion or executes a plan, always have the right tools which enable you to analyze and thereby optimize for future promotions.

3rd Party Professional Services

For help planning and executing any of the above points there are a number of resourceful agencies eager and willing to help.  At Sociarati Media all new clients receive one FREE consultation.

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What is driving the growth in social commerce?

Social commerce continues to see tremendous growth, with the majority of businesses implementing social commerce initiatives. These vary from experimentation with the addition of simple social sharing buttons on their existing e-commerce store, through to fully fledged stores hosted within Facebook. In addition, the majority of those businesses who do not yet have a social commerce strategy are considering establishing one.

Shopping is an inherently social activity. People seek out recommendations for products and services, share their favourite brands, and regularly undertake shopping trips with friends and family. This activity is increasingly carried out online, specifically within social networks. Businesses are understandably excited about the opportunity that these social interactions provide.

There is a wealth of data insights that point to the potential of social commerce. Some of the observations and trends that are driving the continued growth of social commerce are:

  • The continued growth of social media as a channel, both in terms of the number of people participating, and the amount of time devoted to social media by Internet users makes it an extremely attractive channel.
  • People report that recommendations from friends and family, and even from strangers are far more influential than advertising in their decisions about which products to purchase.
  • The reason cited by consumers for connecting with a brand on Facebook is for discounts/deals, so merchants and brands providing access to products and the latest deals within Facebook makes sense.
  • The majority of people use two or more sources of product information before purchasing. Having a social commerce presence provides an additional channel to capture those consumers that are engaging in product search.

Another reason that social commerce is growing is that it is now easier and more affordable than ever to provide a rich social commerce experience. With the Wishpond GoSocial Store solution, businesses are able to expose their entire product catalogue to their Facebook fans with less than an hours work. They can import hundreds of products automatically from their existing e-commerce website, Shopify, Google Merchant Center, eBay, QuickBooks, or even their Retail Pro retail management system. For those that don’t have their data in electronic form, they can easily add products manually with a handy utility that auto-fills all the product information for the retailer. Their product inventory is kept up to date with the external source automatically, meaning that their Facebook store does not require ongoing management.

Many merchants are taking advantage of this lower barrier to entry by creating and experimenting with a Facebook store.

Two great examples of businesses who have implemented the Wishpond GoSocial Store solution are UrShuz, an innovative shoe brand, and Salt Life, a lifestyle clothing brand. They are both using Facebook to drive traffic back to their e-commerce sites. Their fans are sharing and discussing their products with friends, driving interaction with the brand on Facebook. Both have implemented the ‘fan-gating’ feature, which requires users to like their page before being shown exclusive content or deals within the store giving users a reason to like their page.

While it is too soon to draw concrete conclusions from their efforts, preliminary results look promising. Both have experienced a significant growth in fans, and an increase in the level of engagement and interaction with their fan pages.

Time spent on social networks and the amount of information shared during this time is showing few signs of slowing. At the same time the social commerce tool box is increasingly effective as we learn through experimentation. Together, these things mean we are unlikely to see social commerce growth slow any time soon. If your brand is one of those who has yet to begin testing integrated social commerce solutions there has been no better time to GoSocial with your own Facebook storefront than right now.

This guest article was written by Duncan Blair, Director of Marketing at Wishpond.

About Wishpond
Wishpond is a local shopping platform which helps online shoppers find the products they want from retailers near them. is one of the largest local shopping sites with over 17 million product listings from small, medium and national retailers. Wishpond also helps retailers and brands publish their product inventory in the places where customers are looking, like Facebook, through their GoSocial Store solution.

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Using Your Fanpage to Drive Holiday Sales

It’s no secret that Facebook is key to generating brand awareness & loyalty and gaining higher conversions.Tapping into your social communities becomes even more important during the holidays when shoppers are more primed to spend more than any other time of the year.

On major shopping days, top ecommerce sites have reportedly received almost 5% of their traffic from from social media sites. Although Black Friday and Cyber Monday have passed, you can still drive holiday sales through your Facebook fanpage

Here are four simple ways to turn your fans into loyal holiday shoppers!

Offer exclusive deals to fans.

You have an exclusive audience on Facebook —so make them feel special! Consider creating fan-only deals to drive sales and build loyalty within your community!

Encourage your fans to tell their friends about the deal by incentivizing social-sharing. For example, offer exclusive discount counts to fans who tag your fanpage in a status update or share a product image.

Use Facebook ads to target specific user groups.

Facebook ads are a useful marketing tool for merchants wanting to target a niche or specific user-group. Facebook ads let you target messaging by age, location, but the most exciting feature Facebook ads offers is the ability to target ads by interest.

Facebook defines a users “Interests” by their description on their profile and by the fanpages the user has previously Liked. This means you can send ads to users you know already expressed in an interest in your products, industry or competitors.

Tip: Whether you are running your ads to your site or to your fanpage, create specific landing pages for each of your Facebook ads.

Show products in action.

Leaving as little to the imagination as possible is an important part of a successful online store. Besides prominently displaying pictures, you can help shoppers visualize their purchase by posting pictures of your products off the rack, out of the box, and in motion.
For example: If you sell handbags, pair a handbag with multiple outfits to show off its versatility. If you sell lawn mowers, post a video demonstrating your products mowing an unruly lawn.

Add the ‘Like’ buttons to every product page.

Having a ‘Like’ button listed on your homepage is great, but by adding the ‘Like’ button to each of your product pages you give customers an opportunity to share individual products with their friends! When a shopper ‘Like’s a product, a message is automatically posted on their Facebook wall and shared with friends.

About the author: Jimmy Rodriguez is CTO and co-founder of 3DCart, developer of an e-commerce suite for businesses of all sizes. As an authority on e-commerce best practices, Jimmy combines more than 8 years as an e-commerce developer and web programmer with SEO, social marketing and business intelligence.

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An Interview With Enon Landenberg, Publicis E-Dologic Part 2

Following on from last week’s interview we are continuing the series with Enon Landengberg, the Chief Interaction Officer of Publicis E-Dologic. Enon spoke to Commerce On Facebook about marketplace changes with the evolution of social media.

In this, the second installment in the series, Enon spoke about the main factors that differentiate E-Dologic in terms of the overall service that clients receive.

How E-Dologic understands the challenges and balance of using social media to interact at the right level, with potential customers. And the psychology of the ‘Social Consumer’.

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Small and Midsized Retailers get Fans and Customers with Venpop Facebook Fan Offers

The guest writer of this article is Christine Saunders, Director of Community at Venpop.

Getting loyal fans is a difficult task for brands of all sizes, especially smaller retailers who don’t have the big marketing budgets of their corporate counterparts. The importance of being able to connect with fans through social media is quickly becoming an integral part of every online marketing strategy. And while providing good content and conversation will organically grow your fans, offering fans exclusive offers, will result in quicker fan growth over a much shorter period of time. Venpop has developed a Facebook fan offer application that allows retailers of all sizes to collect customer info, grow fans up to 200%, and get sales, in as little as 2 short days.

The reason behind the success of the fan offer application lies in both the retailers’ ability to exclusively reward just their fans and the ability to identify those genuinely interested in the brand. The Venpop fan offer consists of a like-gate feature, which when clicked on unlocks an offer. Visitors to the page must become fans in order to access the deal. When fans buy the deal that information is shared in their newsfeeds; making it easy for their Facebook friends to also benefit from the deal and for the deal go viral. Information about the customer – including their email address – is also collected by the application and made available to the retailer.

Venpop’s fan offer also works in connection with hyper-targeted Facebook ads. Venpop identifies people on Facebook that are interested in the retailer’s offer and shares it with them. The targeted ads make it so retailers gain fans that have a genuine interest in the brand who are much more likely to convert to customers.

Retailers can provide their fans with a deal of their choosing. It can consist of a product, download, or coupon code that retailers aren’t forced to take a loss on, which is often the case with other deal sharing platforms such as Groupon. This makes an especially big difference for small retailers who too often cut prices or take losses in an attempt to acquire new customers.

Green Feet Case Study: Fan Offer
Seeking to increase fans and exposure, Venpop and Green Feet, an eco-friendly store teamed up to reward Green Feet Fans with an exclusive fan only deal. In two days, this small business that normally gets 11 fans a week grew 161 fans during the same period. That is more than 14 times the usual fan growth; extraordinary growth to any retailer but especially a small retailer. And this fan growth carried over for the next three weeks after the campaign had ended. The two day campaign allowed Green Feet to jump start its fan base by a total of 261 fans or over 10% of their overall fans.

In two days, Green Feet also sold over half of the discounted deal it offered. This was a set of environmentally friendly lunch tins offered at 40% off the retail price.

Venpop fan offers make it possible for small business on a very limited budget to collect valuable customer data, get sales, and boost fans.

  • Venpop (
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An Interview With Enon Landenberg, Publicis E-Dologic

Enon Landenberg, a visionary in the world of advertising, spoke to CommerceOnFacebook.Com. From his darkened room, on the top floor of the Publicis building in Ramat Gan, Israel, he answered questions about how Social Media is changing the rules of engagement between brands and consumers.

In an office that would certainly make Mad Men character Don Draper feel at home, Enon sits surrounded by memorabilia of his career. A shelf displaying all of the awards honored to him and E-Dologic, rapidly running out of space.

As one meeting comes to an end in his office another begins, with a slight overlay and enough time for both parties to be introduced and checkout potential synergies.

As the Chief Interaction Officer of Publicis E-Dologic, Enon is a veteran of the advertising world.
The interview has been broken separated into a series and will be aired over the coming weeks. In this first interview, Enon answered what E-Dologic looks to achieve within the realm of social media, when providing client services.

Stay notified of all new articles and features by subscribing now to Commerce On Facebook by Email.


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