The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
March 13, 2001
Barter Plays Major Role In ESPN Offer
ESPN.com, a part of the Walt Disney Co. Internet Group (a tracking stock), is busily putting together an ambitious renewal offer to the National Football League in which barter will be important factor.
To hold on to that coveted contract ESPN is vigorously pursuing the renewal of its rights to produce NFL.com, as that relationship has played a major role in establishing ESPN.com as one of the web's top sports sites. (ESPN has produced the NFL's site for the last three years.)
Substantial Barter Offer A Key Ingredient
ESPN's offer is valued by the NFL at about $250 million over five years. It includes $50 million cash upfront and an estimated $150 million in barter--promotional value--during the same five year period.
expected that other sports web sites will challenge ESPN
for the NFL rights, and predictably, barter once again
will play an important, if little-known role, in the winning
Strong Shareholder Message Delivered Trhough Barter Agreement
The top five executives at Centura Software in Redwood Shores (CA) are known as the "five-dollar management team." And they've sent a strong message to the shareholders regarding their unshakable belief in the company's future. The executives have each agreed to give up their six-figure salaries, from $150,000 to $250,000, for a $1 annual salary.
The group is betting
heavily on the 250,000 stock options they each received in place of
their considerable salaries, which will motivate them to expand the
company. Needless to say, they totally believe in what they're doing!
Popular Web Site Trades On Ability To Provide "Brand Exposure" To Build Profitable Business
Selling products, often at very high prices over the web, would seem like a doomed business model...yet CyberRebate.com is proving to have a winning business model. Joel Granik, 24, is the founder and CEO of the popular web site.
While the rebates often amount to 100% of the purchase price, according to Granik, less than 10% of the buyers actually take the time to collect their rebates! He also makes money on those that do because the customers, after filling out their paperwork, must wait 10 to 14 weeks for the rebate check. (All the while their initial payment is earning interest for Granik's company.)
CyberRebate also is an astute acquirer of merchandise. Granik says that some of the business inventory comes from close-out sales. But more often, he contends, suppliers are giving him very favorable terms in exchange for brand exposure and what Granik says is huge volume!
In February CyberRebate.com
was the 6th most visited web site with 7.7 million unique visitors.
And they've recently concluded a marketing deal with Yahoo.
Here And There. . .
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