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Google
M-Commerce Twice the Cash Value of E-Commerce
by: Darren Yates
Do you even know what M-Commerce is?

Well you better learn fast. Predictions in Europe for M-Commerce, the second largest market behind Asia, are for a spend of €7.4 Billion in 2006 that's over $8 Billion. That's twice the predicted spend of traditional web services!

So what is M-Commerce?
It's very simple, mobile / cell phone based sales. Usually relating to content such as games, wallpaper, ringtones etc. But there's much more to it than that. Keep reading.

What's the big deal?
More people own a mobile phone than a PC, they're better integrated in to daily life. People are very comfortable using them. They are now in fact heavily relied upon, as the phone feature is only a small part of what can be perceived as a miniature multi-purpose multi-capable portable computer.

Mobile Growth
Mobile growth already outstrips all other communication channels. Half of all Americans are mobile phone subscribers. In the UK the ownership of a mobile phone is equivalent to 1.5 phones per head of population. According to research, mobile content services will be worth $121 Billion worldwide by 2008. White label distribution of ringtones, images, games and other promotions will drive up to 1/5th of the revenue generated. It's estimated 1.5 Billion people worldwide own a mobile phone.

With more and more technology add-ons to tempt the consumer these devices are now Cameras, MP3 players, game consoles, voice notepads, picture albums, diary organiser, PDF readers etc etc.

In fact I'm writing this article on my PDA / Phone whilst sat in the sunshine in the garden. With two taps on the screen I can hook up to my home wireless network and check my emails, browse the net, update my Blog or edit and publish article submissions on one of my sites all via broadband.

We are not that far away from always on Net connections. Once this arrives it will allow anyone to do this almost wherever they are. Certainly in the major cities around the world. When this happens there will be a third Internet boom as Joe public try's out the Net connection again that was always too shoddy to use in the past.

And what will they want? Content! ringtones, wallpaper, games, MP3's etc

But I'm getting ahead of myself. The real money isn't even going to be made via a Net sale. The real money will be made via SMS(Short Message Service), MMS(Multimedia Messaging System) and this ones a goldmine...Micro payments.

Recent research has shown a doubling of worldwide revenue from streaming TV and sports bulletin subscriptions. 380 million people worldwide are expected to subscribe to similar services in 2005. Including TV show bulletins particularly from 'reality TV' shows, News bulletins or Soap updates.

Big deal you're not a TV network how can you make some money out of this boom?
I'll go into that in a second but first I want to go back to those Micro payments I mentioned earlier. The real gold dust.

Micro Payment Profits
Micro payments have been around for a while here in the UK. A smaller land mass has allowed for a quicker rollout of mobile technologies here. Nationwide Network coverage is easier to achieve. I believe the first example in the US to take it mainstream was by the 'American Idol' show. Viewers voted for the acts on the show via their mobile phone. They where then charged a small premium for their vote on top of their networks regular SMS charge. Think of the millions of votes that the show attracted and the revenue generated.

That's micro payments in action.

The beauty of this is that people don't feel like they're spending money because they don't need to whip out their credit card, it's an easier payment method, usually involving a simple text to a small number and the payment is small. They also trust their mobile for making payments unlike an online transaction.

Any payments made will appear on their next phone bill. People are already used to paying in this way, they're comfortable with it. Whether it's to vote for an act on a TV show, for a game download or to grab the latest ringtone.

What have you got that you could take micro payments for?
You should be considering how you can utilise your current website network to tap into this market. Do you offer subscriptions? Is there a service you offer that you could convert to subscriptions.

How Can You Make Some Money?
Here's a quick example. Your newsletter. Would your subscribers be willing to pay a small premium to have your newsletter delivered directly to their mobile? Wherever they are, without the need to be sat in front of a PC. Thus bypassing the SPAM filter problem and guaranteeing they receive your valuable content. You could sell it as valuable service for your customers with added content not available on your site or via your regular newsletter.

Or offer them up to the minute breaking news in their industry, which they receive as it breaks and not when they check their email five hours later when it's to late to take action.

Digital artists sell your wallpaper designs direct to the consumer via the mobile phone. New bands forget the record company contract sell your music via MP3's direct to the consumer. Investment advisors get subscribers to your 'Hot Tips' bulletins. Store owners offer a sale bulletin service etc etc

The Future
The omnipresent Google are moving forward with major mobile initiatives. Spending vast amounts of money to stake a claim in this fledgling market. There's the mobile version of Froogle for one and they've also developed mobile business listings specifically for the potentially huge 'local search' market. They also offer a free SMS based information service http://www.google.com/sms/ and http://www.google.co.uk/sms/

Another major company Real Networks, creators of Real media Player, recently bought Finnish mobile phone game developers Mr Goodliving for $15M. Essentially buying a back catalogue of high profile mobile games.

NTL a cable TV company here in the UK recently streamed the Grand National, the biggest race horse meet here in the UK, live to Nokia owning subscribers.

This is early days and that's a small glimpse of the future.

The M-Commerce Market is very different from the online market in terms of what content consumers are currently paying for. The biggest revenue generators online, 70%, are porn and dating sites. A similar percentage via mobile is for games, music and video. Films, that's another one, Nokia are now distributing Hollywood movies via memory card!

The technology specifically 3G, an always on network with transfer rates of 384kbs a second, is here and trickling into mainstream culture. These devices are in fact capable of 1920kbs. Compare that to GPRS at 56kbs. You don't need these speeds to take advantage of this market but you should keep them in mind to realise the full potential of where mobile communication is going.

Here's a brief, eye opening, wish list from consumers for future mobile phone payment abilities:-

10 Use your mobile as a key
9 Marketing communications
8 Retail checkout payments
7 Vending machine payments
6 Flight check in
5 Credit / debit cards
4 Season tickets
3 Loyalty cards
2 Parking Meter payments
1 Mobile Coupon redemption

Getting Started How do you Accept Payments?
Reverse SMS is very popular at the moment. It provides the ability for you to direct consumers to secret download links on your site whilst taking payment through a premium SMS message. Another method known as 'WAP Push' sends a link via SMS that automatically launches when the message is opened. You will need to set up your own WAP / SMS Gateway on your server which will require server administrator access to use both these solutions.

But there are other easier solutions a number of websites are springing up that allow you to upload your content available for download, games, video, wallpaper, MP3's etc . A small fee is taken from each paid download by the SMS Gateway company..

I've compiled a list of useful links to a number of the above solutions and I've also thrown in a couple of links to 'mobaphile' websites were you will find some interesting predictions for the future development of mobile phones along with some real off the wall ideas for making money with mobiles. http://www.how-to-make-money-online.info/m-commerce-resources.php

To paraphrase a strap line 'The future's bright the future's mobile'.



About the author:
How To Make Money
Online
a site all about making money online and Internet Marketing.
Featuring, news, tips, resources, thousands of Internet marketing articles
and useful links.

This article comes with reprint rights. Feel free to reprint and distribute
as you like. All that we ask is that you do not make any changes, that this
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Tips to Build Your Email Address Database

WHY BUILD YOUR EMAIL ADDRESS DATABASE?

Gaining your customers' email addresses will:

  • Provide an additional channel for reaching your customers
  • Increase the ROI of your marketing investments
  • Significantly reduce your customer acquisition and marketing costs
  • Allow you to easily measure the impact of your marketing campaigns
  • Increase your customer participation and retention rates

With ongoing postal and telemarketing pressures impacting marketing budgets for many organizations this year, email marketing could become the "silver lining " for many marketers.   But how do you create a successful email marketing campaign if you do not have a substantial email database?  That question may be one of the largest Internet related challenges facing companies this year.

Research shows that the majority of organizations have email addresses for less than 10% of their postal files.  So how do you level the playing field and start to add quality permission - based email addresses to your database?

Here are some tips that you can use to cost effectively build your email address database and increase your customer participation and retention rates: 


START TO ASK FOR IT!  

Every communication or touch point with a customer should start or end with a request for an email address.   By utilizing the four points below, you should be able to add email addresses for 5% to 10% of your postal file over the course of one year.

1.  Direct Mail Collection

Think about how much time and money you spent for copy and design on your last new direct mail piece.  Most companies have started to ask their customers for their email address information within these mailings.  This is a great step forward. However, companies need to look at one major improvement if they want to increase their email address collection rates. 

To date, most requests for email address information have been pushed, shoved or jammed into whatever white space remains.  It should be no surprise that the success rate has been less than stellar.

To improve on these efforts, you need to provide your members with a reason to release their email addresses to you.  E-newsletters, purchase confirmations, petitions, and special discounts and offers are but a few of the benefits that will encourage your members to come on board.

2.  Web Page Collection

Many companies have an email address collection function in place via the web.  To improve your sign-up rates, add text below the email request box that informs your visitors of the special email benefits that they will receive (i.e. e-newsletters, purchase confirmations, delivery updates, etc.) upon registering.  You can also utilize a pop-up link to inform users of these special benefits.

Finally, your email address request function should be available on your home page. Don't make your users go and look for it.  Every click away from your home page reduces the chances of your users taking an action and providing you with their email address information.

3.  Existing Email Database Collection

Don't forget to ask the members of your existing customer base for email addresses of their friends, family and associates.  Viral marketing is a powerful tool to use and is extremely cost effective!  You could ask them either to provide you with additional addresses or simply to pass on your newsletter, email specific offers, or other information to others they feel have similar interests.

4.  Telemarketing Collection

Don't assume that your telemarketing agents are asking for email addresses from potential customers.  Ensure that your agents have an updated script, which outlines the previously described benefits to potential customers of providing their email addresses.

The suggestions above are a great start!  Yet they really should be viewed as a secondary plan for building your email database.  To exponentially and expeditiously grow your email database, please read on!


EMAIL APPENDING  

Utilizing an email appending service enables you to add email addresses for up to 25% of your postal file, all within 3-4 weeks.

Email Appending - is the process of adding an individual's email address to that individual's postal record in side your existing database.  This is accomplished by matching the postal database against a third party, permission based database of postal and email address information.

Best Practices - Email Appending is not a prospecting tool. The DMA (Direct Marketing Association) and its interactive arm AIM (Association of Interactive Marketing) have guidelines in place that dictate that email appending only be used to append email addresses to your existing opt-in postal record house file.

The Process - Your opt-in postal file is securely transferred to an email appending provider, who will do an initial gross email address match of your file against its opt-in database of postal and email address records.  Your appending provider will then send these matches a permission-based message prepared by you.  All bounces and opt-out requests will be removed from the list.  At that point a valid permission-based email address file of your customers will be delivered back to you. 

Cost - Less than the price of a postal stamp!


IN SUMMARY

The first step of any successful email marketing effort is to build a permission-based email address list of your customers.  The simplest, quickest and most cost-effective way to do this is through email appending, which will enable you to add email addresses for up to 25% of your postal file.  Secondary efforts of email address collection via focused direct mail, web, viral and telemarketing practices are also important and will enable you to add email addresses for an additional 5% to 10% of your base on an annual basis.

Best of luck in building your email address database.  As many companies have already learned, the ROI and cost savings to be achieved will far exceed your expectations.

Bill Kaplan
CEO
FreshAddress, Inc.

FreshAddress, Inc., The Email Address ExpertsTM, provides a comprehensive suite of industry leading database and email deliverability services to help companies increase their e-commerce revenues.  For more information on how we can help "Build and Update" your email list, visit http://freshaddress.com/biz or email biz@freshaddress.com.



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