To: ztect who wrote (39953 ) 3/4/2000 8:33:00 AM From: ztect Respond to of 44908
Some analysis of Friday's news. But first an observation and an aside. First the observation. Interesting how the 3 for 1 one 2/2/2000 is being expounded upon. We got more elaboration on the WeMedia deal per 2/28/00. So hopefully we will soon get official news with more elaboration on Coca Cola's satisfaction and expansion of their deal with tsig.com. Next the aside. Did anyone else notice that the date 2/2/2000 was the first all even number date since 8/28/888? Finally the analysis. 4-H, ----> MMC, ---> GS, LL, -----> MPC BooksNow BR,------> UCP,-----> CC, -----> WeM, ----> AAD -----> Friday's news is very interesting and significant. The significance isn't because of who the deal is with necessarily. This news is important because of how this news enhances the revenue potential of the b-model. The original 2/11/00 news release on the GS deal made me wonder how tsig benefited exactly from this arrangement. Friday's (3/3/00)news better explained how the expanded arrangement with GS worked. Traffic directed to MyCard sites through card partnerships is being directed through these MyCard sites to additional sites (affialiates) from whom tsig generates commissions from product sales and/or revenues from advertising dollars on those additional sites. GeneralSearch is analogous to a free weekly paper except with some added advantages. Like the free weekly, GS sells advertising space to operate except GS has the added benefit of gathering information from everyone who skims through their pages which they can sell or market. Registered skimmers "volunteer" a considerable amount of info but even non-registered users web surfing behavior can be traced via "cookies". The more traffic on GS's site ("eyeballs"), the more valuable GS's advertising space. Plus a larger amount of information gathered also enhances GS's bottomline. GS profits from others that direct more traffic to its site, so they profit share some of their advertising revenues with those sites that direct this traffic to GS. The expansion of the affiliation betw. GS and tsig signifies IMO that GS has already received traffic through tsig and sees the potential for more. But more importantly, this affiliation further indicates how additional revenue can be derived from the business model. Per the diagram above: Tsig has revenues from direct sales and profit sharing partnerships of "cards". Next tsig has "buy throughs" of products offered. Then tsig derives revenues from the channeling of traffic from its sites to other sites. (Plus tsig can also sell advertising space on its site like other etailors if it ultimately chooses to do so). Tsig has leverage from info gathered about its customers which it can market or sell. Plus tsig still has the other revenue streams from teleservice and IT support which tsig can outsource. So tsig has several revenue streams that branch off into other tributaries. z