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To: Jazzbo who wrote (118)3/25/2000 9:41:00 PM
From: ztect  Respond to of 177
 
(cc) Card ideas and synergies............

The last several PR's plus the new management team's prior connections open up an
whole realm of "combo card" possibilities....

====================================================
Note some recent PR language......

"...Virtually all of Lufthansa's 98 million travel customers..." (March 24, 2000)

"...first of TSIG.com's myCards that enables its users to buy multiple products
with a single card...." (March 24, 2000)

"...TSIG and Affinity will provide a broad range of travel-related products to
TSIG's established marketing partners...especially the disability community.."
(March 13, 2000)

"...serving the American disability community..." (Feb. 28, 2000)

"...the leading provider of guestroom telephones to national hotel chains,
including Marriott, Hilton, Starwood and others...." ( Jan. 28, 2000)

==============================================

One common theme is travel. Lufthansa, Affinity, hotel chains.
Another theme is servicing the needs of the disabled community.

Just some wild speculation on the first theme...

My product cards offering discounts at hotels, car rental agencies?

My coffee, phone or music promo cards purchased and
promoted by Marriot or another hotel chain for marketing info on patrons?

Purchases of tsig products that count toward miles on
Lufthansa or other airlines?

Tourism is a huge business. Kerigan was tied into the
hospitality industry through his prior company. Teleglobe
and Lufthansa are connected globally.

I'd venture to guess that some sort of corporate cards are
in the works that connect many of these seemingly disparate
deals into some pretty interesting synergistic partnerships.

z



To: Jazzbo who wrote (118)4/1/2000 9:31:00 AM
From: ztect  Read Replies (1) | Respond to of 177
 
(marketing) New Distributor Model

Did anyone ask about an affiliates programs
or distributorships?

My thinking on this one is that the prior structuring
of the distributorship program was the problem, not
the concept of distributorships.

Just to remind everyone, the prior structure consisted
of three levels or tiers, each with a different cost,
territory and level of support.

The least expensive was $7,000 or something like that
The next expensive was around $17 or $19 thousand and
the top tier was $32,000

The most expensive gave the distributor exclusivity
to an area determine by population, a number of cards
of both promo and 20 unit types, training and support.

The least expensive gave no exclusivity and you could
lose access to your immediate area if someone purchased
a $32,000 distributorship.

All distributors were suppose to get some cut per card of programs they helped to facilitate
like Life Time Learning.

The distributors got a much larger cut per card of
deals they initiated.

Now there were some inherent conflicts with the old
distributor model and the new national card and corporate
card strategy. For example, one of the most lucrative places
for card sales for prior CCI distributors were the many groups within schools.

Another problem was the cost of entry specifically
the cost of the distributorship was a large cost to recoup.
Plus the history of mistrust betw. CCI and distributors
carried over causing additional problems.

Tsig.com IMO rightly concluded that the cost of overseeing,
managing, implementing, training a distributor program
at the time last fall when they decided to put a hold
on this program, would be a drain and diversion of
limited resources

But the distributors served a very useful function.
They put a human face on, plus provided personal
interaction, follow-up and through to the prior Music Card
program at a grass root level.

They also initiated a number of new other less dramatic
deals at the local level.

Looking theoretically at the impact they could have had on
the Babe Ruth and Life Time Learning Deals gives a much
greater overview of the out reach a distributor type
program could give tsig.

With distributors contacting schools or coaches after
receiving materials, these distributors could effectively
and quickly answer any and every question facilitating
participation leading to much greater overall
participation in national deals.

But does tsig.com have to ressurrect the old complicated
multi- tiered high cost of entry distributor program
to get this outreach, face time and follow through?

The answer is NO. Online affiliations models and
surf the net precedents could offer some clues to
how a simpler less exclusive more grass roots oriented
program could work.

Online affiliation model usually offer a percent
of each sale on a "click through" a banner placed
on one's web page. Your (JWC's) sites has these
banner click throughs. So does tsig.com with their
booknow links.

The surf the net model offers an aggregating incentive
for each new member signed up by an existing surf the
net member. Your site I beleive has a link to one of these
as well.

Now tsig could do something comprable online like I
suggested before by offering a reward for referring
people to the site who buy cards. For example, get five
people to buy a card and receive another 10 free units
or with a mileage card one could receive 50 bonus miles
for each card referral to use toward air travel.

However, with tsig.com prior distributorship model,
the programs like Life Time in place, and the strategy
of using the card to drive off line traffic online
to tsig and tsig partnered sites, a grass roots
efforts could and should be utilized based on a small
profit share with additional incentive so any share holder
in theory could function as a distributor.

For example, a share holder has a child in school
in a French Class needing to raise money to go on a trip
to Paris. That share holder's school received the LL
package of info, and it got buried on a desk. Other
clubs hitherto in that school were satisfied selling
rapping paper. Now the share holder goes into that French
class and provides the face to face, and follow through
leading to a tsig.com fund raiser in that school that
otherwise would never had occurred.

Sure the shareholder has an INDIRECT incentive to promote
the my cards. What adds to the bottomline of his investment
ultimately will help his investment. But the shareholder
should also get a DIRECT incentive like a distributor.

For example, for a fund raiser tied to a pre-existing
arrangement like LifeTime for every card sold through
a share holder's instigation, the share holder should
get a profit share for EACH card sold. Say the fund raiser
in the French class sold 200 cards, the share holder
would maybe get 25 cents per card or $50.

What does tsig.com get for these efforts? Gross
cards revenues of $2000 plus the purchasing of these
new customers. A $50 dollar profit share isn't asking
too much.

The cut per card for the share holder could and should
increase for the number of cards sold.

Eg. 0 to 500 cards - $0.25 per card
....500 to 1000- $0.50 per card
....1000 up- $1.00 per card.

There could be additional incentives for reaching
higher thresholds plus additional rewards ie. generate
$100,000 in gross sales get a profit cut of 10% on top
of cut per card.

NOW for new deals instigated through share holders
for new deals with one's church, or business add some
to the profit share

Eg. 1 to 500- $0.40 per card
....501 to 1000- $0.75 per card
....1001 plus.........$1.50 per card

So in effect any share holder through a profit share incentive could effectively become a
distributor.

Former distributors could be back in business, or
effective sales people could make selling cards a
second business.

Tsig has to surrender a profit cut. But the efficacy of
programs like Life Time Learning will be much much
more effective and direct than through mailings, thus
tsig.com will have a much bigger customer base simply
by giving its shareholders incentives to implement
existing and new programs.

Deals with promo cards would be tweaked differently,
but in principle the model would be the same possibly
with reload or percent sale residuals.

Anyway, comments thoughts?

z

cc. tsig.com