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RE: AM: Customer Acquisition via the Web

To:     "'Linda Kolker'" <lkolker@erols.com>, ad-marketing@netpreneur.org
Subject:     RE: AM: Customer Acquisition via the Web
From:     Terry Steichen <TerryS@DataFocus.com>
Date:     Wed, 13 May 1998 20:38:57 -0400

Linda,

You are correct about the delay issue.  At the same time, keep in mind
that ad revenues are only the beginning.  The real payback is probably
in not only subscriptions, but even more importantly, in transaction
fees.  Once you have a 'community' that really likes what you provide
and (this is critical) trusts you to understand and look out for their
interests, you have a potential gold mine.  But you have to really work
at providing both value and trust.  Once you have that (and that kind of
implies that you have a very good focus on your target market and its
needs), you can negotiate much better ad rates, as well as kickbacks
(horrible word, but you get the point) from transactions conducted by
your community.

Though you are also very correct about the uncertainty of payment for
content in the traditional sense, these other forms of income can, over
time, become very very large.

Terry

> -----Original Message-----
> From:	Linda Kolker [SMTP:lkolker@erols.com]
> Sent:	Wednesday, May 13, 1998 7:30 PM
> To:	Terry Steichen
> Subject:	RE: AM: Customer Acquisition via the Web 
> 
> I think Terry's notion of using the unique properties of the Web as a
> medium, namely interactivity, is right on target. There is, of course,
> the
> issue of how quickly the community can be expanded in order to
> generate ad
> revenues. And the issue of getting end-users to pay for Web content is
> still a big unknown. But certainly Womens Connect Online serves as one
> model of a revenue-generating online community. 
> 
> Linda
> ____________
> LeapFrog Solutions
> Board of Directors, New Media Society of Washington     
> v. 301-593-8545  f.301-593-8058

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