(cin) Interview RE: B-Model
Excerpts from OTC Interview: On B-Model
Question:
Tell us about company, bus model, what you're set out to do.
Gordon (tsig CEO):
We have what we think is rather unique opportunity as an
internet company. We've designed several products that
have large consumer aud's; one is in home ent, which
would incl music (dvds, cassettes), books on tape, VHS
movies, as well as dvd's, foc on just the music, we
sell CD's for ... what we believe is the cheapest...
we have what is known as the MusicCard...custom make
(or we have it under our own label) for any # of
non-profits (and can be for for-prof markets--the
model is successful [in both]); the idea: work thru
non-profits to help them conduct fund
raisers...national organizations that would help us
get down to their grassroots orgs;
(e.g. in schools Lifetime Learning puts us in about 102,000
Amer schools, approx 50 million kids; as we set up
with these schools who choose our product, they'll
raise money through their efforts whatever their
purpose may be (sch building fund, uniforms for track
team, trip to Wash DC, etc.)--kind of a cause related
marketing...as we grow, perhaps ... millions of
volunteer salespeople...they go out, they would
collect money, collect data, give us the info on the
people who buy cards, send us the money... we ...split
the sale with them: for every $10, return $5 to
school, and then we send out cards so they can
distribute to those who paid for them; people who buy
these cards go to [tsig internet music site] to
preview music, and then they can make their purchases;
they can also purchase [via 24x7 state of the art 800
number call center].
The internet model: people who come to our site
[have already paid for the card]; we already ahead of
the game, if you will; we'll make money on everything
that is ordered; unique about this model: traffic is
driven to our site for next to nothing because of we have this huge volunteer workforce doing their cause
related mktg; so in our judgment, we get customers [to
our site] for nearly 10 cents a piece.
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