“HELL NO” On So-Called “Rewards” Scheme At April 22 Board Mtg!

April 21, 2010 by admin.

(Posted with permission from the SCA-HOA web site.)

“Date: 4/21/2010

To: SCA Board of Directors

From: Steve Shubitz – Former member of WAG

RE: Proposal to SCA by Rewards Marketing & Sales, LLC - Jim Kaufman - Managing Partner

Thank you all for your service to SCA. This proposal should have been declined at the Committee Level. Please reject this proposal for the following reasons:

1.     Engaging in a relationship with a Mom and Pop start up in the middle of the RECESSION which Nevada is experiencing is far too risky. Subject LLC was only formed a few months ago. Subject business uses a home in SCA for its business address which may violate our CC and Rs. Subject business has no salaried employees and no third parties/investors appear as partners in the LLC records which are held by the state of Nevada.

2.     ANY resident of SCA may go DIRECTLY to http://www.ebates.com/ and sign up for free. Subsequent purchases result in cash back of around 4% (average) directly to the SCA resident. Compare that to the unaudited 1% revenue share on the table. The price of the goods can even be reduced further via the use of third party coupon sites.

3.     The Henderson/Las Vegas area already has numerous discount coupons available to any resident. Some appear in the print media and some are sold in a coupon book. This market is already saturated and unlikely to engage a Mom and Pop start up doing business from their home.

4.     The revenue projections in the proposal are false and may best be described as pie in the sky. The SCA Web Site is only used by around 4% of our residents. The majority of our residents are best described as computer challenged and do not engage in the same level of online purchasing as those individuals in their 30s or 40s.

5.     The allegation that this relationship does not cost SCA any money is false. The ebates part of the deal cost every resident at least 3% (average) of the purchase price. Who will audit the rev share? That takes time and effort. WAG is acutely aware of better ways to monetize sca-hoa.org which basically involves the SALE of advertising space to Realtors and other target markets. This produces revenue at the front end which is easily traceable. Forming a quasi ‘partnership’ which implies an ‘endorsement’ of RMS has the potential to ‘taint’ every single SCA Communication channel in the event of the ‘failure’ of a Mom and Pop start up which is in fact highly likely in our current financial climate.

Respectfully submitted,

Steve Shubitz

NOTE: I probably can’t make the meeting on 4/22. Don’t hesitate to use my researched thoughts as a foundation for your own comments if you concur.”

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