The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
September 12, 2000
In this week's report. . .
BarterNet Acquires Majority Interest In BXI Exchange
BXI is the oldest and largest retail trade exchange in the U.S. having 20,000 businesses as clients in 85 markets. BarterNet was previously a minority shareholder.
The current issue of BarterNews has an extensive cover story on BarterNet, a company backed by Wand Partners, Alignment Capital, and the partners of Parthenon Capital. See our home page for (a look at) the cover and Editor's Note on BarterNet.
Airlines "Private Currency" Expanded Into Online Currency
Bob Crandall, former chairman and CEO of American Airlines (the airline that introduced frequent-flier miles), says a new program set to launch in October called MilePoint.com will be a winner. "This is the natural and logical evolution of the current frequent-flier programs," Crandall reports.
In short, the new program will enable frequent-flier customers to convert their "miles" into an online currency. For each frequent-flier mile customers will receive two-cents in MilePointMoney which can then be used to pay up to 25% of a purchase from more than 100 online merchants including Amazon.com, Sharper Image, the Wine Enthusiast, Brooks Brothers, Radio Shack, and others.
Delta Air Lines, Northwest Airlines, Continental Airlines, US Airways, America West, Trans World Airlines, and Hilton Hotels are all participants and equity owners in MilePoint.
Other Loyalty Programs Announced
Yet another loyalty model just announced is by Stockback.com. This new site will allow consumers to earn up to 20% cash back when they make purchases at any of Stockback's 85 merchant partners, including Buy.com, Dell Computer, and Land's End. The money "earned" will be invested in a group mutual fund, the Stockback Fund, which will be managed by Merrill Lynch. A new slant on loyalty programs is the one by UPromise. It offers consumers the opportunity to earn cash that can be placed in a tax-deferred savings account earmarked for financing a college education.
Radio Is Surprise Hit of Dot.Com Marketing
Radio has become the surprise marketing hit of the New Economy. Today, most experienced dot.com marketing managers believe radio is more effective than buttons or banners, according to a Forrester Research survey.
And a recent PaineWebber study found that 90 established dot.com companies planned to spend 50% or more of their overall ad budget on radio this year.
expects total dot.com radio ad spending to increase to $1.8 billion
in 2000. According to the Radio Advertising Bureau, that figure would
account for 10% of total radio ad sales this year.
Here And There. . .
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