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USPSA Email Newsletter: USPSA Down Range


wgnoyes

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Bill I agree there is nothing wrong with using the commercial vendor but let's not forget the larger question of what are we going to actually try to achieve? We have a new revenue stream. What are we going to do with the funds? I outlined a couple of ways we could broaden the offering for NROI and I am sure there are other's with ideas. My point is that USPSA has more to decide than just this issue.

The notion that this new product is *Free* is simply illusionary. While it is correct that USPSA is not paying anything for the service is correct. But it is also correct that we are sharing the revenue stream with a third party so most assuredly, we are incurring a cost for this item when we have the people and resources to produce it ourselves.

USPSA certainly has the headcount and if you look at the total salaries we are paying to staff the office, we should definitely have the talent to do so. To be sure we are moving forward with electronic media but saying we are moving forward now when everyone else moved started in the same direction 5 or 10 years ago is sort of a backhanded compliment.

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The point is you don't have the people and resources to do it yourself, and it makes no sense to re-invent what already exists in a number of different vendors.

Edited by wgnoyes
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Bill you may very well be correct on that. But if I want to do marketing for my practice I hire someone to provide that service. I do not agree to give them a percentage of the gross revenue that their efforts generate.

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I agree with that, which is why I'd rather them be using just a straight commercial email service like icontact or constant contact, pay for the service outright (cost varies based on how many email contacts you have uploaded), and avoid all the questions about who is getting what kind of under-the-covers kickback for clickthroughs.

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So you'd rather use member money to send emails by paying a commercial service, rather than use an ad agency to do it, not only for free, but to give us a significant amount of money back that can be used for other marketing efforts, like running Junior Camps, updating the USPSA website, new scoring programs, USPSA App, etc. Just want to make sure i'm on the same page here. Let's see, $113,000 in lost revenue, 22,000 members, Charles, go ahead and send in your $5.00 check now for the additional membership dues.

I'm not saying it's perfect, and I'm saying there are a lot of questions to be asked still, but I do think this will be beneficial in the long run. Why not give it a bit of time to get sorted out?

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The advertising revenue from the click count on the USPSA website was $113K. I don't have a number yet for revenue generated off the emails but I'm guessing it will be in the same ballpark. It's a bit over my head, but there are a couple guys who do know what's up who have explained it to me. I just need them to use smaller words. Basically it's money the advertisers and sponsors pay to reach USPSA members. The ad agency coordinates getting all the sponsors, billing them and making sure the revenue gets to USPSA. It doesn't cost the members a dime, and generates a good chunk of revenue that can be used for projects without taxing members. I have a really hard time seeing how this is a bad thing. Like I said, I have questions, but it's more about what portion of the money we receive, what we're going to do with it to better USPSA, and making sure that members who don't want it don't need to receive it (that's a 10 second process, just unscubscribe at the bottom of the page). For now the content is just OK. As we get more involved with this we'll be able to make better and more timely communication with the membership, but more importantly, people who aren't members yet. I've seen USPSA marketing the email to groups not traditionally involved with USPSA. If we can get them reading about it, that's one step closer to getting them shooting it.

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So you'd rather use member money to send emails by paying a commercial service, rather than use an ad agency to do it, not only for free, but to give us a significant amount of money back that can be used for other marketing efforts, like running Junior Camps, updating the USPSA website, new scoring programs, USPSA App, etc. Just want to make sure i'm on the same page here. Let's see, $113,000 in lost revenue, 22,000 members, Charles, go ahead and send in your $5.00 check now for the additional membership dues.

I'm not saying it's perfect, and I'm saying there are a lot of questions to be asked still, but I do think this will be beneficial in the long run. Why not give it a bit of time to get sorted out?

Let's be clear. I have not said this was a bad thing. What I am saying is that if USPSA did it all in house we would not be sharing revenue. Let's say the revenue off of this venture is $200K. Than analysis I would apply would be different if the contractor was getting 50% vs say 15%. Could you provide us that detail Chuck?

Under the shared revenue model if the total revenue is $200K USPSA is paying the provider $100K if it is 50% but only $30K if it is 15%. Based on what I know about dealing with these companies for clients, the minimum is 40%. So say it is 40%, the work of the contractor, which USPSA could do in house, is costing USPSA $80K. For that amount of money we can host it, task a staffer to do it, and after all included costs, and have enough money left to host a Junior Camp or additional RO classes or other matters that will serve USPSA.

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How do you know it's generating $113,000 in revenue for USPSA? It may have been mentioned here but I missed it.

I'm pretty sure it's no where close to that at this point (the ad rates are posted on the MultiView website). Note that the posted rates are for a quarterly buy (13 issues). Maybe $40000 gross annually, maybe.

Also according to the MultiView website it would appear that the list shed almost 20% of its subscribers in just this last week (from over 35,000 to under 29,000). If the initial ad rates were resonable last week they are a lot less so this week.

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