Could this be TSIG? |
An oldie but a goodie by none other than "The Swordsman". I thought it appropriate since TSIG "seems" to be ready to embark on this vision and finally execute their unique business concept. Keep in mind this post was made after the John Hwang crew came onboard and as everyone knows got TSIG out of focus from the "Card" business. However, I feel the main points still apply...as Alyce would say...R U ready??? Enjoy...
To: +rbarsom (81 )
From: +The Swordsman
Reply # of 222
What a befitting name for all of us who believe so passionately in the future of E-commerce that we blindly forge ahead into the unknown following a hunch that we just may have found the investors Holy Grail of the 21st Century.
Nary a one of them making a buck, but what the hell, that'll work itself out later when all the dust settles. After all, this is only the beginning and we were all here early. Right? This gold-E rush may actually last another year or so. I mean it's not like McDonalds put Howard Johnson's out of the highway fast food business overnight. It took damn near 35 years. It even took Sam almost 20 years to bring down the mighty Sears Tower. And after all, HO JO's and Sears still have some horsepower left. It's not like they're out of business. Second generation E-commerce has to be more than a few years down the Ether highway right? There may not even be a second-generation E-engine right?
Maybe and maybe not. One thing's for sure; something's brewing in a tiny town on the west cost of Florida that may toss everything into the proverbial cocked hat. Right down the street from The Home Shopping Network. Remember them?
Now let's pause and reflect in-depth for a moment on what's happening. AMZN, CDNW, NTKI, EBAY, ET al have opened up shop, to the world, but without any of the traditional Bricks & Mortar trappings. Most of that payroll pffft, just gone. Rent? Rent you say? Almost non-existent. Financed receivables almost a thing of the past. Most of the product sold is paid for in advance by the customer. Inventory, virtually non-existent, at least until you've built up a substantial cash flow.
The web has allowed for the invention of a virtual store without any of the traditional overhead. Profitable right from the start. Well almost from the start, maybe in a few years after the marketing and advertising costs level off. Whoa there, I thought you said the Bricks & Mortar stuff was history. What's all this talk about marketing and advertising costs? That's traditional stuff, isn't it? And you say it's keeping them from profitability? Seems like an opening for a second-generation competitor to me.
The Internet will prove to be ruthlessly unforgiving. Like no other business has ever been before. Most of us are willing to give Bricks & Mortar some leeway when they disappoint us. Comfort levels with eye to eye contact. Familiar faces and surroundings. Leeway both in service and/or in pricing. Too much trouble to go to the next mall or store to get the best price on every item.
Not so the web!! We watch all these companies pay hundreds or even thousands of dollars for each new customer, betting on the come for profits. It'll take only one savvy marketer, with one little twist in the plan, and for the sake of pennies an item, or lower shipping charges, those customers are gone with the click of a mouse. And for a dollar or more... pfffft! Houdini couldn't make them disapper faster.
The only thing that will happen faster than building a customer base in an E-commerce business will be the loss of that same customer base. Very important we not lose sight of this critical difference between Bricks & Web commerce. Substantially overlooked. Do not underestimate its importance!
So to keep this short, I'll beg a few questions and then send you on a treasure hunt.
an E-commerce company Could get their name in front of tens of millions of customers without a marketing or advertising overhead?
This company had a physical presence in every city town and village throughout the country.
This company had face-to-face contact with each of their customers?
This company had millions of salespeople to do this work?
These salespeople did this for No-Charge?
This company could claim to have customer loyalty before the customer boots their computer.
This company could get paid by their customer before the customer even booted their computer?
This company could generate revenue from the customer before the customer purchased even 1 item?
This same company was the absolute lowest cost producer of any product they decided to market?
This is too good to be true right? Wrong!!
Just like McDonalds and Sam's there will be a second-generation E-Commerce business model. However, it will not take 35 or 40 years to make headway into its competitions markets. It will happen swiftly. A blitzkrieg so-to-speak that may take only 18 to 24 months. Possibly much quicker. And the established Amazons of this market cannot counter it They have an Achilles' heel. .
There is such a company on the horizon. It's in the infancy stage of development...
p.s. Oh Alyce...you can take a bow now...looks like you will be right about this one too.