We've started getting some feedback about our new ClubShop Rewards Cards policy and pricing. For some, I can see that the value for the new policy and pricing may not be understood or appreciated. So let me address this subject more thoroughly.
Certainly on the surface, it is easier to individually give away cards then sell them. And most chain stores that have their own Rewards Card program, do give their cards away. However, most buyer's clubs do charge a fee to be a member. What is the difference? An individual store can only offer rewards on what they sell. Whereas a buyer's club can offer discounts/rewards on a vast array of merchandise, products and services.
Currently, we still allow for free memberships for gaining rewards when shopping online at the ClubShop Mall. But the offline program is different for a number of reasons.
1.There is a cost involved for the card and for the postage (especially international) or shipping for the card. In some countries, there are also taxation costs when purchasing/receiving the cards.
2.The card has a much greater value in gaining rewards, if a large number of local Merchants are signed up to participate in the program. You can't get your haircut online, or get your oil changed on your car online, or enjoy a nice dinner online.
3.A Local Marketing program is only successful if enough local Merchants are participating to give the card value AND if enough cards are distributed to give the program value to the Merchants. You have to have both ingredients!
If you are concerned that you can't sell cards where you live, you should be....... under one condition. You don't or won't have many Merchants signed up to accept the card where you live.
The only value the card has for an area without local businesses participating, is to gain a membership to shop online. Which is why we will be announcing soon, that we will be offering a new, more affordable, sturdy paper card to give away, to gain ClubShop Rewards Members that are, or may become, online shoppers. These cards will not be numbered or have bar codes, and will not be able to be used when shopping offline.
So how does our new ClubShop Rewards Card policy help you to make more money in a Local Marketing program? The answer to this question is a simple one - it provides your best potential, mass distributors of cards (Affinity Groups and Merchants) with a new profit incentive AND a new motivational incentive to get cards distributed that have been purchased!
Our test study showed that almost all Affinity Groups that received a proper presentation, signed up to distribute cards, IF the cards were purchased for them by a VIP. Our study also revealed that most Affinity Groups that received cards, never distributed most of them! Why not? They are unable to earn any immediate income from their distribution, which is what most Affinity Groups desire. Funds need to be raised for new band uniforms, or new sports equipment or for a fireworks display,etc. They want to make money sooner, rather than later.
Which is why another study revealed to us that tens of thousands of Affinity Groups have been and will be, promptly raising funds by selling discount cards. Local residents, parents of students, neighbors and relatives, typically will help support local fund raising efforts. And do so many times, more to help out the charity than being too concerned with the value for what they are purchasing. Although discount cards do have value and have been found to be a good fundraiser, they won't have as much value as our card and membership can have, due to being able to use the membership to shop online and IF more than ten Merchants are participating locally (as that is about the average number of Merchants that provide discounts for a typical discount card). Which is what makes our cards a great fundraiser, as our pricing for the cards is the same or lower than for the competition's discount cards!
So here is the bottom line for the new card policy and for a Local Marketing program. The program will not work by signing up Merchants, but not getting enough cards distributed to give the program value. The Merchants will lose interest in providing a discount without volume sales. If a local community has 20,000 residents, most VIPs can't afford to make a $30,000+ investment (including postage) to get cards distributed. And it takes a very talented sales management type of VIP, to recruit and train a group of VIPs to sign Merchants up and make a collective investment to mass distribute cards.
However, one motivated VIP can sign up many local Merchants and Affinity Groups to get the job done! Ten local Affinity Groups and Merchants can readily sell 2,000 cards (and make a $16,000 profit!) each to get 20,000 cards distributed. What makes a card worth $10 or 10 Euros? If the discounts or rewards gained can equal more than the cost of a card in a reasonable period of time and that value is created by signing up a large number of local Merchants.
Is our policy change a good value for a VIP that wants to purchase and distribute ten cards or one hundred cards to gain new ClubShop Reward Members? No it isn't. But what value do 100 Members have, if that don't have any/many places to use the card? Their only value is if they shop online, in which case, they don't need a high quality, plastic, numbered and barcoded ClubShop Rewards Card - they just need a free membership. And that can be more affordably provided them with a lower cost card that does not have to be numbered or barcoded. They/you can fill in their ID on the card for reference purposes, once the online membership form is completed.
When a local area does have enough Merchants to give the card value, the local online shopping members that have been signed up, may decide to order an individual card to be used where they live. When this happens, the member's Glocal Income Partner will earn a nice commission percentage and Pay Points on their member's purchase of the card.
The more one understands the dynamics of creating a successful local marketing campaign, the more one will LOVE our new policy!
On a final note, we also plan to announce within the next few weeks, some new Merchant options to make the program even more attractive to a wider variety of Merchants, including local chain stores and restaurants, gas stations, convenience stores, etc.
Stay tuned..... because it just keeps getting better and better!
