Bob,
<<*****MusicCard***Definition and Marketing*****>>
As always, a very good job of keeping the thread focused.
<<TSIG is not primarily a CD sales company. It is a Card sales company. The CDs sales come as a byproduct of the Card sales.>>
I'm going to differ and agree with you at the same time regarding this statement. TSIG as a company is in several different businesses, with multiple card products, telemarketing support, and the sales agent role we saw in today's press release.
Regarding MyMusicCard sales:
On the fund raising side (the one currently getting all the attention), the business of TSIG is acquiring and maintaining partnerships.
These business partners have the card sales and promotional responsibilities for selling to their memberships. For TSIG, low advertising and overhead costs.
As for the direct to consumer side (the one currently getting virtually no attention), TSIG is (or will be) a card sales company. I believe TSIG has the POTENTIAL to be one of the top three or four players in the internet consumer sales industry within 1-2 years. Recent discussions of TSIG's desire to create their own fulfillment center, IMHO, supports that thought process. Advertising expenses will be higher on this side of the business, but POTENTIAL savings on factory direct CD inventory acquisition could offset those costs.
In summary, the upcoming ramp-up of fundraising programs will result in positive cash flow and working capital to build for the future. Hopefully, TSIG's biggest problem will be managing growth as they are presented with additional revenue opportunities.
John |
