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Microcap & Penny Stocks : TSIG.com TIGI (formerly TSIG)

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To: Zeev Hed who wrote (28752)	5/23/1999 12:27:00 AM
From: ztect	of 44908

Zeev... I actually woke up and logged on because I was thinking about the same question myself regarding the allocation of receipts from card sales. Yes the math doesn't add up if the split is $5 gross for the distributor and an equal amount for the group trying to raise funds. TSIG doesn't get the card receipts if this is the particular arrangement. Not sure if it is or if there is some other allocation. Regardless of the allocation, it seems apparent that TSIG would make more money from direct agreements with charities for card sales rather than through a distributor especially on the initial sale of the first card. TSIG may or may not get a bigger portion of a reload. Would be interesting to see how these deals are set, and yes I intend to ask.. However, the distributors living and working within specific communities would or should have a more immediate access to those communities and may be able to better arrange fundraising activities with smaller groups and organizations. If such a group and card sale arrangement is made through a distributor, yes there is less initial revenue from card sales. But there is the upfront sale of the distributorship which appears to equal 3000 cards or $30,000. Also the card itself, if used by the purchaser, is the marketing device that generates the traffic to the website because of the value it offers. Consequently, this would be tantamount to "free" marketing to generate eyeballs and sales to the MyMusicCard website "if" the person who bought the card to contribute to a "cause" also intends to use the card to purchase cd's. The price of $10.99 per cd is a tremendous incentive to use the card. The card being for 20 cd's would or should assure the return of that customer for the continued value. Thus the revenues are ultimately contingent upon sales of cd's than cards with lower margins through these distributor agreements. The distributors created greater outreach w/o high marketing costs. W/o high costs of trying to obtain and maintain eyeballs, margins can be maintained while being the low cost provider. Now these are my thoughts, and I've basically written my thoughts on these matters almost as a stream of consciousness trying to rationalize and understand the distributorships and the value of these distributors. After speaking to the contact that JRSwails provided, I will hopefully have a better understanding of many of the thoughts I've expounded upon here. z (spelling not checked)

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