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Revenue Model
Yes, free stuff can result in sizeable revenues. Those enjoying the games and entertainment are exposed to promotions and advertising. Now add the surveys and you know the customer’s interests, making that person significantly more valuable. Promotions and advertising can then be targeted to the interests of the member and response rates should be high. GameStakes has identified several revenue streams that it believes will quickly (6- 9 months) generate a very positive bottom line.
- Advertising Networks: Advertisers know when what they’re selling is being exposed to a large targeted audience (those already known to have an interest) then response rates increase dramatically. As the GameStakes data base grows, its value to advertisers also grows.
- Product Sales: Just as advertisers see the value of a targeted prospect list, so does GameStakes. The Company plans on benefiting from its targeted data base by directly selling goods and services to its members. Products with high margins and that are of interest to its members will be sourced for sale. Just think how effective it would be if someone completed a survey and they were interested in pop music and were then exposed a variety of teen merchandise like Brittney Spears new CD or tickets for the next American Idol tour. GameStakes will initially look at companies that drop ship to avoid costs of warehousing and infrastructure.
- Info Ads: Banners, Flash Ads and Video Promotions will be unobtrusively presented at the same time members are being entertained. Then when they click on the ad or promo, the person is directed to a more detailed explanation of the product or service. This very effective approach is similar to what many magazines do – they present content in a form so the reader thinks of it as an article or editorial rather than an advertisement.
- Electronic Content: Content that can be electronically delivered via the Internet is ideal since there is no warehousing involved. GameStakes will look for products that can be delivered electronically. Products like these generally have very high profit margins.
- List Buyers: The more people on the list that are known to have an interest in a particular subject area, the more valuable the list. For instance, just think how valuable a list of those that plan on buying running shoes in the next 30 days would be to Nike or a list of those that are currently planning a vacation with the locale they plan on going to would be to American Express Travel. Vendors pay a premium for lists like these and that’s just was GameStakes has. By knowing what people are viewing, what they’re buying and the surveys they complete, GameStakes is able amass a wide range of detailed data about its members.
- Affiliate Marketing: There are many organizations with a web presence that reward those sending visitors, subscribers, customers, and/or sales to their web site. GameStakes will become an affiliate of selected sites that it believes have a good affiliate program and share similar values. By directing its members to these sites, the revenue potential is sizable.
- Direct Sellers & BIZOPs: There are many organizations that recruit salespeople (called Distributors or Independent Business Owners) to sell their products. Their salespeople build a down-line by recruiting others who then recruit others and so on. Royalties are paid from those that join and from sales of those in their down-line. This is perfect for GameStakes. The Company will sign up as a Distributor for organizations that it deems trustworthy and have a valuable product line to offer GameStakes members. The Company benefits directly from products purchased by its members but also indirectly when members tell others that purchase. The Company has already identified two Direct Sellers organizations – Arbonne and StemTech. GameStakes will also stay up to date of new trends in this area and new companies.
- Licensing: Acquiring members and converting those members into paying customers can be a costly proposition. GameStakes has developed a unique business strategy to reduce the cost of acquisition, increase sales and add a new profit center for the companies. Companies are in dire need of marketing like this and GPS is an attractive and viable solution. In additions to using these strategies for its own site, GameStakes will licensee GPS to companies. These Companies will gain a whole new sales channel for selling their products and GameStakes’ profits should be significant from the associated licensing fees. Corporate licenses like Disney, American or Nike can elect to host a GPS site themselves. GameStakes will also offer a SaaS (software as a service) solution where it host the licensees’ GPS site. This is a very cost-effective option for small to medium sized business since there’s no hardware or technology costs.
- Vertical Market Partners: Vertical Market Partners (VMP) are organizations that understand their market segment and have an established customer base. Examples of these organizations are AARP for baby boomers; NOW for woman; or even the Salvation Army for charities. GameStakes sees such great potential in forming joint ventures with these organizations that it will provide its GPS technology free of charge in exchange for a revenue sharing agreement. The VMP is expected to bring its vertical market expertise to the joint venture and operate and manage GPS site. GameStakes will host the GPS site and provide the required technical expertise. This will expose GameStakes and its GPS platform to many different yet segmented markets.
- Mobile Marketing: The rise of the iPhone and other smart phones has supercharged the mobile gaming market. GameStakes has a mobile strategy to deliver its games and promotions on smart phones and handheld devices, and to keep its customers engaged wherever they happen to be.
- The Holy Grail: When you’re seeking a large membership base charging a membership fee is counterproductive. As such, few charge and instead rely on revenues from advertising. But GameStakes has found the Holy Grail of making money from the large memberships it creates way beyond just advertising. It works like this. The basic entertainment is free for all to enjoy. There will, however, be a Gold Membership where there is a fee. Being Gold, allows those members to benefit monetarily from those they refer. This revenue sharing approach is sure to make GameStakes really standout. Later a PLATINUM Membership level with even more benefits (and of course higher fees) will be introduced.
GameStakes will also continue to explore other viable revenue opportunities.
