To: Zeev Hed who wrote (23688 ) 4/3/1999 10:55:00 PM From: REW Read Replies (1) | Respond to of 44908
The model of TSIG has been coming into fruition for quite awhile. There are now the elements coming together to make the model work. There have been several sponsorships announced and more on the way. These My Card deals result in revenues. The unique part of this model is the lack of using the advertising expense line item which others depend so heavily upon. This can become crippling. TSIG has decided to allow others to promote their product line by in essence splitting the profits on the front end with the purchase price of the Card. Look at the deals already signed. Babe Ruth has approx 900,000 children in the baseball leagues. They need revenue to run the teams and get supplies. They must obtain the funds through either fund raising or their parents. This causes a concerted effort to raise the funds through the fund raising efforts. Look at the marketing technique sponsored by the Lifetime Learning contract. There are approx 50,000,000 children asked to promote the My Card products for approx 100,000 schools in order to raise the additional funds to buy supplies for the students needs. Look also at the various charities. They will promote the My Card products to raise funds desperately needed to fund their various causes. The volunteers will hit the streets to sell these products in order to meet these needs. As all this goes on TSIG then fills orders for product as it is ordered from the allowed purchasing quantity of the Card. TSIG makes a profit from this action also. See the DD explanations I brought forward. I know you pay attention as your buddy doesn't. The steady Teleservices Division should just sit there and crank out the steady income needed to drive the expenses of TSIG.com. Don't think for a minute this Div is intended to be a one client hit operation. The Silicon Valley office looks to be the loose cannon. It has just been established and has already been staffed with extremely qualified individuals. Hwang has connections and abilities unknown to the investing market. As he unfolds his operation and brings his contacts into play, this Division can be projected to be the largest and most notable of the three. Don't discount the ability of further financing. There could be things in play or discussed or approached that could change the monitary outlook of the financing arrangements very quickly. We have all seen the growth and success of lesser ideas accelerate onto the scene and capture the market. I don't have to look at other companies. I have looked deeply into this one and have followed their every move for quite some time. I have watched for them to deviate from the path and have not seen any evidence of it happening. Timing has been the problem as it has taken longer than ALL wanted to get to this point, but ,like you said, an operation of this anticipated size and diversity takes time to develop. The volume of expected revenue should easily overshadow the items being discussed to death now. There is a window of opportunity available right now that allows the attempt to destroy investor confidence and it is being taken by a few with no apparent motivation except that it is there. I expect them to have a short term success, but even jerks like them won't succeed for long. There is too much coming. Check back in 3-6 months and see if TSIG has moved forward. I'll bet you will be surprised and, if you are on the side of success, happily so.