dracozna wrote in news:463f5a5e$0$329$e4fe514c@news.xs4all.nl:

That's easy enough. It's called affiliate sales. Let's just for example,
give a possible model...

Let's call this market "Sedaction". Just an imaginary product. And let's
also say that a popular underground location for discussing this
"Sedaction" exists... on a newsgroup called "Alt.Sedaction.Quickly" or
ASQ for short. Okay...

You post about being completely new to this market. You act all intrquied
about it. Talk about how cool it is and how uderground it is. Then you
claim that you'd like to archive all the information about ASQ that's
ever existed. But, instead, what you do is take out a loan... and you not
only create an archive of ASQ posts... you also build a website that has
a seperate forum... you also add tidbits from others on a seperate
page... you offer access to the forum, provided they give an e-mail
address.

You use the e-mail list you develop to show to companies that you have a
built in market. Then, you get companies that sell Sedaction products to
agree to pay a "click-though" fee for purchases of their product made
through your site. Meanwhile, you also run a massive marketing campaign
to drive as much traffic as possible to your site. You get people
interested in reading about Sedaction to move off the old ASQ and onto
your site. You even claim that ASQ is old and dead. Perhaps even get
enough noise generated on ASQ to make it dead. And you also drive off any
potential opposition to this goal by volume posting.

Now, as your site grows... you can pay off the loan... and more
importantly, you add more services to the site. But, you maintain the
links to sites that sell products, provided that you get a click through
fee for all purchases that get made. Eventually, you can even develop
your own products. As your presence grows and expands, you can also
increase the demand you make on the companies that are now your
affilates.

Permit me to expand a bit, getting long winded a bit, with a company that
made a HUGE success with this concept.

Let's call it Wally's Mart.

Starting out with a small loan, a new store was opened. With a bit of
business, they company expanded. Instead of leasing the property the
store used... they started buying real estate. They could then rent the
lot from their own company, giving a tax break. They could also rent to
other stores in the same shopping area, ensuring that no stores would be
a direct threat to theirs.

They then could offer local governments extra revenue from sales taxes,
provided they simply allowed special concessions to this mini-mall
shoping area, such as always having a red light making access to the
property easy... reduced costs for utilities... and (perhaps rumored)
agreements to not allow competing business to be located within a certain
distance.

Then, they also could build their own distribution network. They could
have their own trucks and drivers, so as to not need to rely on
independant sources. But even more so, with their own distribution
network, they could then force companies that want to sell products in
their now large market stores to deliver directly to the distribution
center... and to do so on their dime. And, they could also force those
companies to deliever new product to them before sending new product to
competing businesses.

Next, they start making your own products. Dog food. Candy. Light bulbs.
Cereal. The products are nearly the same (but lower quality) as some of
the major brands already sold. They are, however, cheaper. They can then
place these products alongside the name brands. Their own product line
can then make an even higher profit margin than name brands, even though
they already force the brand name companies to give them discounts, pay
for shelf space, and offer special promotional sets in their stores, but
to refuse such deals for other businesses.

Even better, with this sort of growing power, they could also then force
companies to pay a fee for shelf space. If you have a product, like light
bulbs, you want to sell... you pay for each 4 foot sectional your product
takes. If you want to put a new product on an endcap, for the additional
visibility... you pay an added premium. They tell you what you will pay
for this and they also tell you just what you can put there.

Soon, you are opening stores in places that were long thought off
limits.. like Mexico, Eygpt, and even China.

Now, I know I'm sure I've got a dfew details out of whack. But then, I'm
not a marketing genius. I'm sure someone else on ASF can explain how the
marketing works much better than I could. Then again, if they did...
they'd risk someone else trying to do it themselves.