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Technology Stocks : MSGI Marketing Services Group Inc. -- Ignore unavailable to you. Want to Upgrade?


To: Michael Ohlendorf who wrote (1506)7/1/1999 3:50:00 PM
From: stock_bull69  Read Replies (2) | Respond to of 3418
 
Found this insightful post on the RB site re the "GreaterGood" news released this morning:

Why GreaterGood.com?

There has to be a bigger picture here. We know MSGI has companies that cater to non-profit organizations. Notably SD&A who provides telemarketing services to np organizations, and Media Marketplace who's client list includes np organizations amongst others. If you visit the GreaterGood (http://www.greatergood.com ), SD&A (http://www.sdanda.com/whoweserve.htm ) and Media Marketplace websites (http://www.mmp-inc.com/ ), you will see many of the same big np organizations common to all three sites.

So why not tie the synergies together? .... Well, if MSGI is already a prominent player in the world of charity marketing off the inet, who else could be better positioned to gain dominance in the relatively unexploited charity marketing space ON the inet? MSGI, that's who!

This is where it gets tricky. Revenue and profits must be the underlying motive for any business venture. This begs the question, where does the revenue come from? Especially since there is nothing stopping Amazon.com (for example) from offering the same charity cut as that offered by GreaterGood. The benefits GreaterGood offers are:

1. One-stop shopping where concerned consumers can find participating charity-friendly companies and thereby kill two birds w/ one stone.

2. Assurance to the consumer that the price of a product is not artificially elevated to cover the charity's cut.

3. Saves Amazon.com the cost of administating the transaction with the charity.

4. MSGI gets a cut of GreaterGood's profits (1% - 20%) of each transaction.

5. MSGI gets the advertising business on the website.

Sounds better the more I think about it. I bet I'm just scratching the surface of the potential here. So maybe there is method to the madness!

Just my thoughts ...


PS MSGI ended up in the green up 3/16!