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Old 15th March 2008, 03:45 PM   #1
WizardJim
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Join Date: Mar 2008
Location: Shenandoah, Virginia
Posts: 4
Default Input On FREE Advertising Business

Hello everyone! I'm a new member here, and I would love your input/questions on a new business idea I've been beating my brains out over!!

The general idea is as follows:
A Discount Shoppers Club that provides area customers great discounts for aperiod of 1 year at approximately 40 different merchants. Advertising for the merchants is free AND the program will actually PAY the merchant to advertise!

How it works:
The Consumer:
a. Signs up for a 1 year club membership which costs $20.00
b. They receive a membership card that contains discounts at 40 local merchants and which is valid for an entire year.

The Merchant:
a. Provides a good promotinal offer and signs a contract to honor that offer.
b. Merchant receives not only free advertisingBUT also receives an equal share of 10% of the gross sales, which are paid out to participating merchants every quarter.
c. Merchant may alsosell the memberships for a generous commission

ME the business:
a. Markets the memberships through various outlets including website, local non-profit organizations, set ups at participating merchants, and other avenues.
b. Printesthe membership cards, maintains the website, which also has general information about each participateing merchant.

THIS is the general info. BELIEVE me I THINK I've thought about anything and everything BUT would like ya'lls input/questions!!!!

Thanks! Looking forward to exchanges!
Jim

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Old 15th March 2008, 09:39 PM   #2
Logan
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Join Date: Jun 2004
Location: Colorado
Posts: 8,046
Default

Sounds somewhat along the lines of the Entertainment coupon book that is popular.

I would consider setting up some rules how information is shared. For example, as a merchant would I receive the names and personal info of members?

Another slant, maybe not go so far with your emphasis on free/cheap -

It's Official: Cheaper Is Perceived As Less Good
http://www.smallbusinessbrief.com/fo...ad.php?t=16431

Why target low dollar/prices? Why not buy a membership for $200 (or something higher) that blows me a way with something of higher value? Why low dollar vs high.

It's going to take work, and easier said than done. But feasible. yes.

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Old 16th March 2008, 11:34 AM   #3
WizardJim
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Join Date: Mar 2008
Location: Shenandoah, Virginia
Posts: 4
Default Thanks Logan!

I agree with what you're saving about coupon books, but feel it more closely resembles the Discount Card programs for Non-profits that have about 12 merchants.

These programs allow non-profits to sell the cards for $10 all day long and are very popular.

Would I give the customers names and contact info. to the merchants? NO!!!
Privacy and spam issues that people are complaining about!
What I WOULD do for the merchants is allow them to give me periodic SUPER SPECIALS for members that I would send to the membership, or which would be available to members from the website.

As far as price I agree with you on too cheap, however, I also believe that there is too expensive! Maybe $20 is too low, but an $80 or $100 membership I feel would be too high.

Lets say a restaurant would give 15% off a total food ticket, or an oil change place $5.00 off an oil change, or bowling alley 1 free game with purchase of 2

Pricing should be low enough to make the average joe be willing to purchase,
and the overhaead for this isminimal.

Your thoughts???
Jim

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