To: ztect who wrote (155 ) 6/30/2000 5:59:09 AM From: ztect Read Replies (1) | Respond to of 177 Conversation with Paul Henry on Wednesday, June 27, 2000 Part 2 Next we then spoke about the synergy betw. Reliant and GeneralSearch. Paul noted that one of the products that Reliant sells the most of is computers. (I later found the asseenontv.com web site). Paul noted that all new sales were going to be loaded with the free GS ISP, launching the new user to the General Search portal (at least until people figure out to change their target page). Henceforth Paul then got going into a discussion of the value of of a search engine and portal per customer. I interrupted him and asked exactly how this value per customer was derived because this something I read but had never heard explained. Paul said that the $1000 dollars or so was derived from taking the market caps of similar search engine/portals and dividing the market cap. by the told number of users of that portal. He said the dollar value has decreased with the correction in the markets since for those that don't already know, the "market cap" is the total number of shares multiplied by the total number of shares outstanding. If share price goes down so does market cap. Anyway per Paul's comparisons to other portal/engines and Reliant’s current rate of computer sales, he said is was very conceivable to have 3 mil sold computer loaded w. GS's ISP (through first net) and thus by analogy and a very conservative value of $1,000 per user a theoretical market cap of 3 mil times $1000 or a huge market cap if priced relative tot he market (I'll let people do their own math). [Note that the more customers one has, i.e. the more eyeballs, the value of the advertising and placement of banners and hyperlinks becomes more valuable. Rates can be raised, plus more money can be derived from buy throughs to affiliate relationships, and more money is derived from 1stUP for info gathered and rates of placement on 1stUP's continuous pop up] Now Paul also kept mentioning that the GS and Reliant synergy reiterated the "zero acquisition model" since unlike free ISP and Search engines like Netzero and Lycos, not one dollar on advertising would have to be spent to get one customer since all sold computers would have GS pre-loaded. Now with GS registration, Reliant sales info, and Affinity utilizing info to data base mine an incredible amount of info is gathered and analyzed. However, this isn't all. I then asked Paul, how does "the card" factor into all of this. Paul said added to the above generated data, is the additional marketing info gathered from all the different branded card registrations thus creating a huge database of info to extrapolate from and utilized for the targeted marketing campaigns of the specific branded companies, for infomrecial sales, or basically for targeted sales of just about any product or service leveraging this database to get the best pricing with distributors to ensure being the near or at low cost provider and , thus to retain, grow, and maximize per customer sales. I took a deep breath, because, what has been determined to be the best way to make money on the Internet is the utilization of customer information for targeted and permission marketing. branded companies pay big money for this stuff, because it ultimately saves these branded companies big money to target rather than mass advertise to the specific desired demographics. Thus my next question was about Disney, and I asked in the tournament still happening. I noted Max Biffi's comments at the share holder meeting as being the first of many deals with Disney. Paul wouldn't verify but said there would be some "expanded" announcement regarding Disney very "soon". He didn't elaborate on what this was, nor did I ask or try to probe further. Paul went on to say that more was also in the works with Coca Cola and Lufthansa, so these relationships were going full speed ahead. In my opinion, Paul for a very brief moment lost his better judgment and told me something he shouldn't have disclosed about Coke. I'm not going to elaborate any further on hat he said, and will let any forthcoming PR speak for itself. Since we were talking so quickly, I believe mild mannered poker face Paul got so enthused that he revealed some of the cards in his hand that he should of held tighter to his chest. Well from this point on in our conversation, I talked with Paul about pursuing a relationship w. a company with which I work that got bought by a major national listed corporation. I won't go into any details but we spoke about ways in which cards could be sold at different venues, and during this conversation, Paul reiterated that the card relationship with Miller was still brewing. I thanked Paul for his time, and we both agreed that things at tsig.com [symbol TIGI] were really coming together.....FINALLY. End of report. If I subsequently remember anything I forgot, I will issue an addendum. z