Business model

At present the organizing company offers two types of business models:

• “Partnership” business model is intended for partners whose main activity is mobile content distribution. This business model implies close cooperation between the system organizer and the partner, the profit being distributed upon the sale of cards and royalty payments. Profit distribution on a percentage basis in this scheme depends on many factors and is to be discussed with the partner.

  Possible scheme of distribution of funds:

  Nominal card value – $5, out of this sum the dealer gets 33%, the partner – 33%, the system organizer – 34%. That is the dealer gets $1.65, the partner – $1.65 and system organizer - $1.7

• “Promotion action” business model – when content on prepaid cards is used by the partner (mobile network operator, phone manufacturer, store chain) to boost his goods and services. For example, when a customer buys a mobile phone, the manufacturer gives him the most popular Java game of the season as a present or when getting connected to a mobile network operator, the client receives a prepaid service card as a gift. The card may have a certain value and give the client a possibility to choose content or buy a certain element of content.

  An approximate price of a prepaid card with the nominal value of $5 for this business model is $2 for a card, with the circulation of over 100000 (the price includes their issue) – in case of a non-exclusive cooperation scheme.

Each business model may include exclusive cooperation. In this case cards are designed according to the partner’s corporate style and demands and the partner is to buy a consignment of cards. Under this scheme the price of a card may constitute up to 50% of its nominal value for the partner, depending on the emphasis on certain types of content.

Whatever the type of a business model, the system organizer is responsible for the operating capacity of the central system, ensures provision of content for the system, makes payments to copyright holders, provides technical consultations to partner’s support service, produces prepaid cards. Organizer may also take upon himself the responsibility for installation, technical support and servicing of the partner’s server if agreed with the partner.

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* If the partner takes the responsibility to print the cards, cost of printing is deducted from the card circulation cost