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AM: RE: FW: "Gorilla Marketing"

To:     "'Mitch Arnowitz'" <>, "''" <>
Subject:     AM: RE: FW: "Gorilla Marketing"
From:     "David C. Frankil" <>
Date:     Thu, 31 Jul 1997 22:41:20 -0400


Can you provide any additional information on Microsoft's "Value Chain Initiative"?

David C. Frankil
the virtual compliance company

703 533-5550
703 533-5551 (fax)

-----Original Message-----
From:	Mitch Arnowitz []
Sent:	Thursday, July 31, 1997 1:28 PM
To:	''
Subject:	AM: FW: "Gorilla Marketing"


Enclosed is a recent post sent to the group by George
Atkinson of Trade Compass. I have heard George speak on 
Internet Gorilla Marketing- very interesting. I am reposting George's 
Gorilla Marketing experience and have added an experience of 
my own. The topic George writes on is of interest to many in the 
group; Gorilla Marketing. 

Anyway, please take a quick read & add your comments/thoughts or
an experience of your own. 


Mitch Arnowitz <>
Business Development 
The Netpreneur Program  
v 703.620.8971

George Atkinson, of Trade Compass writes:

>At Trade Compass (, the leading website and 
>Internet software company for global trade and transportation, we have found
>it beneficial to partner with a few select big companies in a strategy
>that I have dubbed "gorilla marketing."  By forming strategic alliances with
>such 'gorillas' as Microsoft (3 divisions), GTE's Enterprise Solutions
>group, Oracle, FedEx, and Sterling Commerce among others, we have been
>able to advance our marketing objectives beyond where we would have been 

>These relationships have helped us: (1) ATTRACT NEW CUSTOMERS through co
>-branded sales and marketing programs. For example, we're teaming with all
>of the above listed companies on our 15-city "Export America" conference
>series to jointly educate/evangelize the trade community; we're a part 
>of Microsoft's Value Chain Initiative 'dream team' in which our solution along with 
>those of other VCI members is being pitched to Fortune 500 companies; and GTE
>wants to resell our services to GTE's existing and new corporate intranet accounts 
>(2) ATTRACT ATTENTION through joint PR announcements and programs.Oracle,
>through their PR firm, regularly engineers articles in major trade magazines featuring 
>our use of the Oracle Express Server for our World Trade Analyzer product... free
>national exposure. (3)  GET A JUMP ON COMPETITION.

>Big companies seem to only want to work with a select group of alliance
>partners, and in our experience, only want to work with those which lead
>their 'sector.'  By gaining the alliance of the 'gorillas' at this stage in our
>development, we hope to add momentum to the lead in our niche to stay. 
>If I were to relay any keys to our success so far (time and cash flow 
>will the ultimate judge of these relationships), I would say that it's important
>to (a) BE SELECTIVE of alliance partners and try to pick the best to further 
>specific goals of your Marketing Plan, and (b) DRIVE THE AGENDA.

>Another Microsoft alliance partner--a small company like ours--passed along
>this advice to me at a Microsoft Small Business Summit.  Respect
>comes--and objectives are furthered--when you set and maintain the
>reigns of the agenda.

>*** I would be interested to hear from the group of any similar
>experiences and advice regarding 'gorilla marketing'.

>George Atkinson
>Vice President, Marketing
>Trade Compass
>1510 H. St. NW, Suite 500
>Washington, DC  20005
>Tel: 202-783-4455
>Fax: 202-783-4465
>"Gateway to International Commerce"


While at CyberShop (LLC start-up, the online department store), I developed
a revenue sharing relationship with Time-Warner's Pathfinder (consumer
orientated) site. This relationship placed CyberShop in Pathfinder's shopping
area. Being an Internet start-up, I realized early on that I would have 
to piggyback or develop "strategic alliances" to meet our objectives. My 
objectives for this relationship were branding, traffic and most important- 
generating customers (paying customers is another issue, for another post). 

If I was able to generate advertising revenue (a major if), I would buy banner
ads on netscape, etc. to generate traffic that in turn would lead to paying
customers. Again, this business was an Internet commerce model. I decided,
there was a quicker, much easier, more profitable way to get this job done.
That way was to offer value and piggyback onto an established partner's 

I was able to meet Pathfinder's need at the time (offer valuable discount for
affinity program being developed for new subscription service; Personal Edition). 
In return, website decision makers saw product value and agreed to enter into 
revenue sharing relationship. My branding rational to Time-Warner was that in 
order for them to make money, the relationship needed promotion. Logical web 
promotion included advertising. Pathfinder (generating 1MM users a day), 
agreed to run banner ads, free of charge, to promote the relationship. 

I agreed to pay them 5% + $0.50 per order. Little downside as revenues were 
paid on incremental business with average price points of $130.00
(at the end of the negotiate, they insisted on an annuity on ongoing business). 
In the end, I got $150,000 of free advertising on one of the more trafficked websites, 
major branding & credibility (customers also clicked through to a co-branded 
gateway) and hopefully some paying customers.

So what did I learn from this partnership? Well, I did build a model that we 
successfully used with others on the web. And... I did quickly learn the meaning 
of the term "level playing field." It was not so much what I learned 
as having traditional off-line experience confirmed... Confirmed was the value 
proposition, meaning that Time-Warner saw value in our product or service.
Big or small, if a partner sees value, half the job is done. Also, some things 
never change: key to the deal was the relationship developed. 

Lastly, I learned that (at least online) big established companies, are open to 
partnering with small, nimble organizations. Large companies seem to be 
anxious to learn from smaller start-ups, kinda like inexpensive R & D. 

**Does anyone have similar experiences they can share? 

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