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Microcap & Penny Stocks : TIGI : Building Innovative Marketing Relationships
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To: ztect who wrote (27)1/28/2000 5:19:00 PM
From: ztect  Read Replies (1) of 177
 
(sa/ma) Tsig vs CDnow...............................

The bottomline is that CDnow is more expensive than MyMusicCard.

They have a lot more content partly because of the belief that if you can keep them at your site, you can sell them more and because they need the revenues from advertisement placement on the site.

Unfortunately they spend so much on mass advertising that they can neither afford to price more competitively or offset their own huge advertising costs with placement revenues. They pay to re-aquire the same customers.

Plus CDnow is exclusively an etail company.

Tsig is NOT. They are a marketing company just as much as they are a e-commerce company. They get paid to advertise their own sites and generate customer data base info for their recognized brand named partners.

CDnow is predicated on the false premise at great expense that branding will be a successful online marketing strategy to generate business. With dot com proliferation, the branding model is ultimately proving to be a blurry distraction with too many new companies vying for the same sets of eye balls.

Until recently unprofitable etailors were rewarded by investors for increasing volume of sales despite accelerating costs. Now these companies are being looked at closer since they're hemoraging money and being undermined by lower cost providers and click and brick with already established and visible offline branded presences.

Sincerely,

z (spellin' not checked)
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