To: Andretti who wrote (25029 ) 4/10/1999 10:42:00 PM From: REW Read Replies (1) | Respond to of 44908
With the model TSIG.com has established with the My MusicCard Company, how will it be able to make profits when the competition in the CD business is losing so much? It has NO advertising budget to attract customers. Sounds kind of silly doesn't it. Can TSIG attract customers with no advertising budget and do it with a substantial volume? YES!!! How could such a thing be done when everyone else has to advertise their revenues off just to get someone to buy one of their products? Well let's see. My MusicCard Co obtains customers through the sale of the MY MusicCard. That process is done in several ways. Of course the most recognizable and most easily guessed by the normal street or internet user would be through contact with the My MusicCard site resulting in a My MusicCard purchase. Oddly this might very well be the least used method of initial involvement with the My MusicCard Co. TSIG makes $10 for the purchase of the Card and then $1+/CD purchased. Another primary method to be used to obtain customers will be through MusicCard sponsorships. These will be done by charities primarily but can also be done through corporations, events, those individuals and organizations performing a function for (normally) a charity, and many others. Using the charities as an example, there will be numerous volunteers that will support the charity in it's donation attempts. The use of the MusicCard will be a natural as the public will get something for their money. They get to make a donation to the charity and in return get a MusicCard. Now they can go to the My MusicCard site or call in by telephone to order CDs at the low price of $10.99 or less. That is much less than the stores which charge as much as $17.99. Yes, there was a donation of $10 made and the charity got $5 and TSIG got $5 (standard example-could be slightly different depending on the deal). The customer then got the privilege of purchasing 20 CDs at discount prices saving about $60-100. Yes the donor/customer made/saved money in excess of the donation by donating to the charity. TSIG made $5/Card and then $1+/CD purchased. The last and most intriguing method of attracting customers for the My MusicCard is the PromoCard. The PromoCard is a 3 CD purchase allowance card. It is used in promotional situations. The primary user would a corporation that wants to utilize a give-away instead of a price cut sale or a combination of the two. An example would be the attachment of the PromoCard to the 12 pack box of one of the drink companies. Once purchased, the customer would contact TSIG's My MusicCard Co by internet or phone to activate the PromoCard. He then can purchase 3 CDs at the discounted prices. Once the 3 purchases are made he then can reload (buy) into a regular MusicCard. The PromoCard primary customer purchases the PromoCards in volume for the promotion. This requires an up front contribution to TSIG by the customer. These purchases are in the millions of cards for national campaigns. If the PromoCard is let go for $.75 each and 10,000,000 are needed there will be a revenue return to TSIG of $7,500,000 for the PromoCard purchase by the client. TSIG made $7,500,000 for the sale of the PromoCard to the client plus $1+/CD purchased on those activated. TSIG then makes $10 for each PromoCard converted into a My MusicCard and $1+/CD purchased. Now add in the satisfied customer referrals, viral marketing and it is catching. Word of mouth advertising and promotion is very valuable and free. The cost is a functional conduit, adequate product selection, exceptional customer service, and competitive pricing. TSIG makes $10/card and $1+/CD purchased. Take this process throught the sponsorships and associations already made and the potential of the volume of them to come. TSIG.com's My MusicCard Co has quite a future. Bob