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To: Andrew H who wrote (117)2/21/1999 7:12:00 PM
From: ztect  Respond to of 2662
 
Andrew H..REW made an excellent post on TSIG on the TSIG thread....

Here a copy for other's consumption....

Message 7949587

To: Doug F (17579 )
From: REW
Sunday, Feb 21 1999 4:55PM ET

For those wishing for a recap of the the TSIG "MODEL FOR SUCCESS", I will attempt to give some information for you to consider.

The model TSIG has adopted is one of low expense with high return. The advertising line item of the competition which continues to eat them alive and they cannot apparently get out from under is almost non-existent for TSIG. By being a MusicCard company TSIG sells a card designed to capture a customer by having a member commit to returning to purchase 20 CDs. This is done by having an organization sponsor the Card through their fund raising activities or promoting it as a sales inducement bonus to the public for purchasing their product.

Add to this the ability to also capture or service a customer off the internet through teleservices. A plus not adequately offered by any competitor I know of.

The MusicCard costs 9.99 and TSIG splits that or discounts it to the endorsing organization. The organization then markets the Card to its members or customers for the full price and pays TSIG the discounted price. No advertising cost to TSIG.

See post 13613 and 13628 for further discussion on the Cards.

A customer to TSIG is a MusicCard holder. The Card holder then purchases 20 CDs at 10.99 or less. Given proper service and presentation the Card holder then will renew his membership with a repurchase of another Card and the cycle of that customer goes on. TSIG also makes a little over $1/CD. Multiply this process by millions of MusicCard holders.

The deals already signed and released along with the deals in process and to be released upon closure can generate extremely high volumes of card sales each. Look at the potential of just the Babe Ruth endorsement and multiply that by the dozens of deals that can be produced just this year.

The new site being produced for TSIG by Cohesive should be on-line to the waiting public within 1-3 weeks. Anticipation is for the first of March but the knowledge that these projects usually run into some minor form of delay causes the acceptance of a later opening to make sure the public gets what it deserves.

The structure of TSIG has just been divisionalized and a Sr VP hired to head each. Check the credentials of each and see if there is not evidence of anticipated success coming from TSIG due to the positions each held and left to join TSIG. They have seen the projected future of TSIG and decided to leave their comfortable positions of success to take the challenge of bringing TSIG forward into a market power.

The telecommunications division has signed the Signature Group now owned by GE Capital which in turn is owned by GE. The continued expansion of this division within the existing customer as was indicated in the PR and the addition of new clients, as is also in the wind, will generate this division of TSIG into a power of it's own.

Once the MyMusicCard Division is established and running strong, the anticipation is to expand the Card influence into other areas. MyBookCard, MyVideoCard, MyCigarCard, and many others are possibly in future.

With the business on the table right now and announced TSIG can make a profit in March or April. The to be announced business drives that forward into unknown territory known by none of TSIG's competitors.

Imagine an internet company essentially entering the marketplace making a profit.

The stock of TSIG has two effects in front of it. One is the move to take it to value. The other is the growth to take it along with the advancement of future positive growing earnings.

I hope this helps and the members can correct or expand the contents. I know it is brief.

Bob

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Reproduced by ztect