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Marketing Program

Mon, 05/17/2010 - 19:03 — StevenZins
 
  • The basic idea of the LEDybug Marketing Program:
    • We pay commissions to people who demonstrate the LEDybug and generate sales.
  • How the Marketing Program works, briefly.
    • A person with a LEDybug Discount Code is called a Demonstrator.
    • A Demonstrator demonstrates the LEDybug and gives his Discount Code to prospective buyers.
    • The prospect buys a LEDybug at our web store using the Discount Code, which entitles him to receive a discount at time of purchase.
    • The Discount Code identifies the Demonstrator, who receives a commission.
  • Who can get a Discount code and become a Demonstrator?
    • The owner of a LEDybug (The Owner). 
    • Anyone who knows an Owner of a LEDybug and can borrow the LEDybug.
  • How to get a Discount Code, if you own a LEDybug.
    • A LEDybug Owner can sign in to a web site and opt in to the Marketing Program.
    • The Owner can then set up Discount Codes.
    • There is no charge to set up a Discount Code. It is completely free. Nor is there any other obligation.
  • If you want to be a Demonstrator and you do not own a LEDybug, but you know someone who does, that Owner can do it for you.
    • The LEDybug Owner signs in to a web site and opts in to the Marketing Program, if he or she has not already done so.
    • The Owner then sets up a Discount Code with your name and email address.
    • You become the User of a Discount Code.
  • Commissions for all Discount Codes are all sent to the LEDybug Owner who created them.
    • The commissions for Discount Codes that are used by other people must be distributed to them by the Owner according to whatever agreement there is between them.
      • The LEDybug company does not and cannot mediate or enforce these agreements.
      • The LEDybug company is only responsible for recording sales units and dollars made with each Discount Code.
    • The User of a Discount Code can sign in and see the activity for his Discount Code. This includes the unit and dollar sales for that Discount Code and the payments made by the LEDybug company to the Owner.
  • The role of the Discount.
    • The Discount is intended to increase the likelihood that a Demonstrator will receive a commission.
    • The Discount code is used like a coupon when purchasing; it causes the discount amount to be subtracted from the price when adding a LEDybug to a shopping cart.
    • The Discount provides a financial incentive to the prospective buyer to use the Discount code when purchasing.
  • If you want to allow people, say friends and family, to whom you demonstrate, to receive a discount, but you do not want your referral to be tainted with with a commission, you have the option of passing your commission directly to the LEDybug Education Fund. Alternatively, you could accept the commission normally, and then give the commission amount to the buyer, to further decrease their effective cost. You can set up one Discount Code that gives you a commission and one that directs the commission to the LEDybug Education Fund.
  • Why this program is good for everyone.
    • Good for customers:
      • The price markup required for this approach is significantly less than that for department stores or electronics stores. 
      • This approach also eliminates advertising costs. This includes not just print or other media costs, but marketing overhead required to plan and control those expenditures.
      • See Prices, Commissions, Discounts for amounts.
    • Good for Demonstrators:
      • This is an opportunity for people to earn money for their efforts and insights.
      • We expect only a small number of our customers to be Demonstrators. Of these Demonstrators, we expect
        • a small number will earn a lot of money,
        • more will earn enough to keep active,
        • even more will earn enough to partially or fully pay for their LEDybug, and then not spend more time at it.
      • There is no investment, no commitment, no recruitment, no pressure. See "Not an MLM" page, below.
    • Good for the LEDybug company:
      • This program allows the company to benefit directly from the unique attention-getting character of its product.
      • The visual impact of a demonstration is critical for this new product to be appreciated. It is far superior to print ads, for example.
      • It takes advantage of our diverse demonstrators' insights into new markets.
      • This program gives us experience with the LEDybug as an advertising medium.
        • In Silicon Valley there is a saying: "Eat your own dogfood."  That is, use your own product or service.
        • We are committed to eating our own dogfood.
      • Commissions are paid after customer payments are received.
        • There are no (advertising) expenses to be paid before sales materialize. Therefore, no working capital is required for advertisement.
      • Word of mouth referrals and gizmo web sites are certainly appreciated, but they cannot be counted on to drive sales volume.
  • Possible Objections
    • "This program looks like an MLM, get-rich-quick scheme."
      • This is simply not a Multi-Level Marketing scheme. For one thing, there is only one "level."  All Demonstrators are treated equally.
      • While a few insightful, energetic people could make a lot of money, they will probably not become "rich". No one should quit their day job.
      • See the "Not an MLM" page, below, for more.
    • "It will be offensive to tech enthusiasts. Financial incentives will taint referrals."
      • The default for a customer is to receive no commission. An enthusiast must explicitly opt in to receive a commission.
      • An enthusiast who has opted in for any reason can assign the commission, which would normally go to himself, to got to the LEDybug Education Fund.
      • Alternatively, a customer can receive the commission and pass it to those who buy it or any one else.
      • See the "Marketing Program Details" page, below.
  • http://intranet.ledybug.com/sites/default/files/color/garland-cf293d01/m...); background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; background-position: 1px 0.35em; background-repeat: no-repeat no-repeat; ">
    Who can become a Demonstrator?
    • http://intranet.ledybug.com/sites/default/files/color/garland-cf293d01/m...); background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; background-position: 1px 0.35em; background-repeat: no-repeat no-repeat; ">
      The owner of a LEDybug can opt in to become a Demonstrator.
    • http://intranet.ledybug.com/sites/default/files/color/garland-cf293d01/m...); background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; background-position: 1px 0.35em; background-repeat: no-repeat no-repeat; ">
      Anyone who knows an owner of a a LEDybug, and can borrow the LEDybug, can become a Demonstrator.