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AM: Ad/Store rates

To:     ad-market
Subject:     AM: Ad/Store rates
From:     RLSmithNet@aol.com
Date:     Mon, 1 Jun 1998 23:55:23 -0400

I am not sure I have enough info to provide proper advise, but hear are some
reactions.

First, it is not clear whether virtual athelete is an advertising supported
information service or a store with editorial content.  If the former, then a
more aggressive advertising model is needed than 50 cents per thousand if I
read the inquiry correctly.  While most ad rates seem to be in the $20 to mid
$30 for thousand unique customer views, and these rates seem to be flattening.
For stores and manufacturers, they are less concerned about how often their ad
is uniquely viewed as they are how much sales actually result from the ad.

If virtualathelete is primarily a store, then all ads and other content are
designed to drive purchases.  It is the sale that counts.  For instance Garden
Escape is developing the web site for the 100 year old magazine Horticulture
in return for Horticulture's content on Garden Escape's web site and access to
their readers, all gardners.  A commission is also being provided to
Horticulture for all sales generated from the magazine.

It would seem to make sense to follow the model first established by AOL that
a commission from actual online sales be initially applied for a new online
store and site.  Only when returns are quantifiable would leasing space for a
monthly or annual fee possibly make sense. 

Also, might want to contact out of Annapolis Jeanine Delaney of Teamwork
Company that is putting together an excercise web site.  May be some
interesting synergies or may be a direct competitor.  Her e-mail address is
jkdelaney@erols.com.  Here is their complete address info: The Teamwork
Company, Inc., 1610 West Street, Suite 209   Annapolis, Maryland 21401

Phone (410) 295-7180  Fax (410) 295-0486   www.teamworkcompany.com.

Hope these thoughts are helpful.  The online retail market is still in its
infancy so that the business models are still being created.  The bottom line
is use whatever approach the market will support and will help you realize a
fair return over time.

Bob Smith
shop.org


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