Here are the terms of the CD deal with AOL. They paid AOL to do the promotion and portal hookup. If the same kind of deal is done for NM, then NM probably got a cash advance against future commissions. Commissions will probably be determined by members siging up at E4L. Now we need to know what the estimated new number of members is and if the commission is on memberships, sales or both coming through the E4L portal.
Dulles, VA and Stamford, CT - June 10, 1997 - AOL Inc. (NYSE:AOL), the world's leading Internet online service, and CUC International Inc. (NYSE:CU), a leading membership-based consumer services company and online retailer, today announced a major new online commerce partnership. Under the agreement, CUC International's shopping, travel and other online services will gain prominent placement throughout various channels within the AOL network, including anchor tenancies in the all-new AOL Shopping Channel and other AOL promotional services.
In addition, NetMarket, CUC's new comprehensive Internet commerce site, will be linked to AOL's more than 8 million members through a customized, branded website. With more than one million product offerings, personalized services and search features, NetMarket members will have access to CUC's popular discount shopping, auto, travel and other consumer programs, all for an annual, multi-tiered membership fee.
Under the three-year agreement, CUC will offer AOL's members the opportunity to conveniently purchase a wide range of goods and services at discounts through its Shoppers Advantage, Travelers Advantage, AutoVantage, and PrivacyGuard clubs as well as NetMarket. CUC's offerings will enjoy key positioning on AOL's Shopping Channel pages devoted to more than a dozen popular consumer categories, ranging from clothing and accessories to retail videos and software.
As part of the agreement, AOL will receive payments totaling $50 million - primarily to be credited against future transaction and membership commissions to AOL - plus the potential for additional amounts based on a revenue-sharing agreement. Once the marketing program, which includes online promotions, direct mail and telemarketing activities, is fully in place, it is expected that CUC will generate more than 1 million gross new interactive memberships per year, as well as a substantial number of online visits to CUC's sites by AOL subscribers. |
