Re: Sample Board Decision: Candidates please respond

by simone(at)genesisnetwork.net (Demitrius)

 Date:  Tue, 20 Jan 1998 10:03:11 -0800
 To:  <cindy(at)raenet.com>,
<hwg-elections(at)hwg.org>
  todo: View Thread, Original
Hi,

>In summary, it seems each candidate was open to the concept of
>accepting a large donation from Giant Software Company in exchange
>for some level of acknowledgement/advertising. What level of
>such acknowledgement folks would be comfortable with seems to vary
>amongst the candidates.

I have a true story relating to this. Have you ever used GifWizard?
(http://www.gifwizard.com) It's an online utility that reduces the size of
your image files. Some time ago, the owner decided to utilize banner ads as
a way to generate revenues. Now, understand that GifWizard was *never* a
not-for-profit educational organization. Some people (few) were *furious*
that they "had to look at those" banner ads! Nevertheless, the owner (I
think his name is Tom) chose to keep the ads anyway.

Then, because ad revenues were not sufficient, he decided to start
*charging* on a per use basis for his service. His basic service is now
priced at about the cost of a good dinner with wine. (Am I allowed to quote
his pricing here, or is it still a no-no?) Well guess what happened? Yes, he
fielded his share of flames. Big time. "How DARE you charge for this
service!!!" they said (among other things ;). Well, the flamers tamed down
and now GifWizard's revenues are better than ever. People still use his
service and I understand it's still as popular as ever.

My point: I believe banner ads are a great idea. Yes, you will have those
individuals who will object, some very strongly. But after we weather the
storm, we'll be in a much better position. We can use the banner ads for two
separate reasons:
1) Build exposure
2) Build revenues

We could build exposure by bartering for banner ad space. We put their
banner on our site, they put our banner on their site. No money is involved.
The point was brought up last night in the chat session that we are already
pretty well linked all over the web and we get about 2,000 hits per day on
the front page. Be that as it may, I spend a considerable amount of time
surfing the web everyday (it's my job). I *might* see an HWG logo once a
week. Maybe. The only exception, of course, are the sites I see on the
critique list. I
believe we could benefit from more exposure as it would build our
membership. And if we are currently signing up 200 new members per day, then
think what getting more than 2,000 hits a day would do.

The other option for banner ads is to charge money for them. But frankly, I
don't believe that 2,000 hits per day to our front page is going to get us
an interested paying company no matter how targeted our audience is.  I,
personally, have a website that gets over 1100 hits per day and when I
prospected for a banner advertiser, I got laughed at. My little site doesn't
get nearly enough hits to be taken seriously. So in my opinion, selling ad
space is going to be a difficult prospect.

So why, you ask, would a company be willing to trade space if they aren't
willing to pay for space? Heck, I don't know. I just know that when you make
a proposal that involves bartering as opposed to cash, you get more takers.

The question was brought up to me:
>Part of the process of being on the GB is having some unique
>opinions and information to provide to the discussion. It's good to
>listen to other members' feedback, but each member needs to bring
>something to the discussion. What would you be hoping other members
>would ask/say?

I was mistaken about the process here on this list. I will correct that,
starting now. You see, I am currently Vice President for a local
not-for-profit board (Visions Center Church of Religious Science). I've
learned, from experience, that whenever an issue comes up, you *listen* to
what the more experienced members say and *then* offer your opinions or
ideas. I didn't change gears here and spoke like I would at one of those
meetings. Sorry. From now on I will state my ideas as clearly as I am able.

>Scenario One:
>
>Giant Software Company approaches the Guild, wanting to donate server
>hardware and software, as well as a $50,000 cash donation. In exchange,
>they are asking for a statement of donation (e.g. servers provided by GSC)
>and a logo to be placed prominently on the front page, and for "bragging
>rights" that state the Guild relies on GSC servers to conduct our virtual
>business.
>
>Should the Guild accept such a donation?

I would approve such an arraignment provided we could negotiate the terms we
feel would be in our best interest and yet meet the requests of the Giant
Software Company.


For example, I would be agreeable to placing a 90 x 30 ad on the front page
that states we rely on GSC servers. Small price if you ask me. Would some
members be upset? Of course they would. But the flames would taper off and
the Guild would continue on. I would make sure that our agreement with GSC
clearly state that this is the limit that we will entertain in terms of
"bragging rights".

I would also ask for a link back to our site from GSC's website. GSC could
state that we operate on their servers and could provide a link back to HWG.

Regards,
Demitrius >I<
------------------------------------------------A. Demitrius Lopez
       W  E  B  S  I  T  E     D  E  V  E  L  O  P  E  R
                   I'd appreciate your vote
               to the HWG Governing Board
http://www.hwg.org/election1998/lopez.html
------------------------------------>I<------------------------------------

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