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To: Arthur Tang who wrote (50)7/22/2000 11:03:45 AM
From: Arthur Tang  Read Replies (1) | Respond to of 66
 
Reviewing the activities at servicemerchandise.com, we realized that the format is amateurish and the business model has a problem making money.

The format has to be portal, with many links. The content has to be exchange based with suppliers(inventory in their warehouses) in the background and products in the foreground. With bells and whistles to lure customers in. Bells and whistles could be some one elses' give aways. Some banks are giving away $50 and/or $20 for new accounts.

The business model has to be the same as catalog sales. But the advertizing fees are not limited to the product suppliers. More of the advertizing fees should come from any advertizers be it banks, insurance companies, or other merchants whether they are competing or not. This business model is the only one that is successful so far on the net. Any other business models will slowly die on the net. Many close shop already, many will close soon. The net does not sell goods. The advertizing media sells goods. The net is good for paperless transactions. You still have to have good fulfillment program in the background.

Cusano better take notice. If you ever get successful, remember the stockholders who helped you to revive this company of ours.