First question then, is this $30,000 a one time cost?
I'm assuming it is based on the amount.
>>>Yes, however; there will be an annual Distributorship fee of $500 to remain active. This is suppose to help them recover marketing material updates, etc... Not to happy about this one.
Is this Platinum membership also going to include leads?
What do you mean by a 1,000,000 population? Are they selling
distributorships based on the size of potential markets?
>>>Yes it will include leads. TSIG is giving a demographics of 1,000,000 population to Platinum Distributors. Silver and Gold will have a smaller territory to work from. Only Platinum and Gold will have protected territories. Larger markets in excess of 1,000,000 such as Houston could conceivably have more than one distributor. This would be broken out by counties and or zip codes.
Second, not accounting for reloads, distributors must sell somewhere
between 12,000 to 15,000 cards just to recoup their initial $30,000
investment. Based on your prior experience of selling only 2,000 cards, you must believe that this 12,000 to 15,000 number is easily obtainable. Your 2,000 sales look like they occurred in a relatively short time, however you mentioned these sales were in part to schools. Are you not concerned that national deals like the one with LifeTime learning will infringe upon some of your prior sales potential and markets?
>>>Yes, very concerned. TSIG will share with the distributor a very small portion of the sales when there is no participation on the distributors part. TSIG will share a larger portion of the sales with the distributor when his/her participation is required. I do not wish to disclose those figures at this point in time for proprietary reasons. Those figures are disclosed in the proposed contracts that are being sent out.
>>>It is my opinion that without distributor participation, especially in school fund drives, that the success rate will not be near what it could be with distributor participation. JMHO from experience.
Based on Conrad's one deal, Conrad Accola has made back his investment. 21,000 cards exceeds the 15,000 threshold. Obviously you are equally confident about generating enough card sales. Is this a fair assessment?
>>>Conrad and Mary's deal is with Promo Cards. Gross Profit on Promo Cards is only $0.49/card. They had a lot of marketing costs and other overhead associated with this deal. If this were $10.00 MusicCards, then your statement would be closer to correct.
Is your up front money due upon signing your contract?
>>>That would be my assumption.
Regards,
Jerry |
