Monday, December 21, 2009

Guest Research



- The “Google of Shopping”

This page assumes you have previously watched a webcast. If you haven't, click this "Video Business Overview" link. 

DUBLI IS NOW A PUBLICLY-HELD CORPORATION!
Prior to September, 2009, we stated that "DubLi is a privately-held company, so any data they share is voluntary. Furthermore, releasing data may only harm their growth, by alerting competition to their success." But as of Oct. 1, 2009, DubLi is publicly-held, via a merger with MediaNet Group, a publicly-held company in Southern Florida.
·         The Aug. 12, 2009, merger announcement is here.
·         The announcement of the merger completion is here.
·         And the MediaNet Group website now displays the DubLi logo.
$1 MILLION BONUS TO ANYONE WHO REACHES THE TOP RANK BEFORE 2011
This is hard to believe, but DubLi posted this announcement in the back office, accessible to every rep, and the announcement was also emailed to every rep in DubLi's Aug. 21 newsletter.

CUSTOMER & REP NUMBERS
Below we have included documented data from active DubLi websites, with links, which provide the EU customer count and then we project the USA numbers. Of course, if DubLi put up fraudulent info and it was discovered, they'd be liable and worse, the company would fail as people found out they couldn't trust those who run it. Plus, their contracts with major name-brand companies, such as Yahoo, Apple, Gucci, Louis-Vitton, Sony, etc., most likely depend upon accurate reporting of customer traffic. So for several reasons, we're confident in the numbers being posted.
·         EU Customer Count: At the company's site, on the "Residual Income" page (a little more than half-way down the page in the paragraphs under the customer chart and math), you can see "... our customer to associate ratio is among the highest in the industry, a staggering 72:1 ratio." Also, at http://www.dublinetwork.com/1-22/e-conomy_booming, just posted April 1, 2009, the second-to-last paragraph says, "DubLi.com’s select test market in Europe saw 2.3 million customers come in just eight months."
·         EU Rep Count: Without much effort, you can then figure out there are about 32,000 reps in Europe (2.3 mil. divided by 72). The company announced way back on Oct. 17, 2007, that they had surpassed 10,000 reps, so to triple that 18 months later is highly likely. It's also probable that the customer count is now much higher than 2 or 3 million.
·         USA Rep Count: Tom Ashlock, DubLi North America's top income earner, in his back office showed growth to approx. 8000 reps from June 2008 to Sep. 2009. Tom has anywhere from 80 to 90% (possibly more) of the entire DubLi NA rep force in his network, so our current count should be a little over 10,000 here at the end of 2009. With compounding and some experience watching networking companies grow, we expect that number to reach the high tens of thousands in 2010.
·         USA Customer Count: 0! Well, we have a little trickle, maybe a hundred thousand, but at the beginning of 2010 we will open our Global Auction and we'll begin flooding the market with credits to attract customers.
For perspective, eBay started in 1995, grew to 2.1 million customers* by 1998 (3+ years), then exploded to 42 million customers* by 2001. That's 2.1 million to 42 million in 3 years! We expect DubLi to grow just as fast. (* Note that those eBay customers were "registered," not purchasing customers. DubLi's customer count of 2.3 million is people who purchased something from the DubLi.com website.)

THE DUBLI BUSINESS MODEL
Most people look at dubli.com and think it’s an auction site, in business to sell auction items to customers. This is not really the case. DubLi’s auctions are a strategic “means to an end”, and only a small part of the revenue model. DubLi.com is an early stage shopping portal that aggregates shoppers on its website, and then sells those shoppers to major search engines and online merchants for click-through fees and revenue-share fees. Aggregating and selling online shoppers is an established, multi-billion-dollar industry, led by companies like Google, Amazon, and eBay. DubLi is already a player in this industry with its largest customer for ecommerce services being Kelkoo, which is the Yahoo!-owned search engine in Europe. DubLi charges Kelkoo whenever DubLi shoppers click through to Kelkoo or purchase products from Kelkoo affiliated merchants.

The most successful shopping portals have “hooks” to draw traffic to their site. Google’s hook is search; Amazon’s has always been books; eBay’s is auctions. DubLi’s hook is reverse auctions and shopping games (entertainment shopping). DubLi uses reverse auctions and games to drive traffic to dubli.com. In an eBay auction, the seller is charged the auction fee. In a DubLi auction, the bidder is charged the fee
with each bid, in the form of a DubLi “credit” that costs 80¢. This auction fee covers DubLi’s cost of acquiring the customer and running the auctions and games, and it also covers the cost of reducing the auction price of the product by 25¢ with each bid, which makes the auctions exciting and drives traffic. In exchange for the 80¢ fee, the customer gets access to discounted prices at dubli.com, in the same way that a Costco member gets access to discounted prices at Costco stores in exchange for the membership fee. The DubLi customer also gets “entertainment” value in watching the price drop, which is critical to the viral growth of the customer base.

DubLi’s strategic focus is on expanding its customer base, because the value of any shopping portal business is directly related to the size of its customer base. DubLi uses a traditional
network marketing distribution model to launch its initial customer base in new markets, both because DubLi’s founder has had successful experience in network marketing, and because a network model can create large, loyal, initial customer bases faster and cheaper than advertising-based models. What DubLi gets with its network marketing model is initial customers fast and cheap (without having to raise millions of dollars for each new market launch); what DubLi gives up is a cut of its revenue stream, paid out in commissions to its Business Associates for the life of their customers.

DubLi’s Business Associates are paid commissions to create new customer bases and to sponsor new Business Associates (who, in turn, create
more new customer bases). Commissions are paid to Associates whenever their registered customers buy credits to participate in dubli.com auctions or whenever their customers generate click-through or revenue-share fees by clicking through to DubLi’s search engine partner. In order to create a new customer base, Business Associates buy DubLi credits in bulk (called “Product Packages”), and then give away the credits to prospective customers to get them to visit the site and try out the auctions. When a new Business Associate buys a Product Package, commissions are paid to the recruiting Business Associate, just as if a customer had bought the credits (and that is how Business Associates earn commissions from recruiting new Business Associates).

AMAZON'S PROFITABLE BUSINESS MODEL
The story of how Amazon turned the corner after 9 years of losing money is online in great detail at http://www.seattlepi.com/business/158315_amazon28.html, "How Amazon.com survived, thrived and turned a profit," where the Seattle newspaper explains that, "The company ... looked to bolster its offering online -- not by expanding its own warehouse inventory but by selling products in other companies' warehouses. Amazon transformed itself from a specialty retailer into an online shopping portal, taking a cue from auctioneer eBay, which set itself up as a mediator between buyer and seller."

WHY WOULD ANYONE PAY TO SEE A PRICETAG?
·         Do you use a Shopping Search Engine? If so:
1.    Find your lowest price.
2.    Did you save $10 to $20?
3.    Is the item offered in a Dubli auction?
4.    Is it worth 80cents (80cents for a DubLi credit) to see if you can save another 20%, 30% or more?
·         Costco: Started in 1983; by the end of 1989, its sixth year: “Costco became the first company ever to grow from zero to $3 billion in sales in less than six years.” Today, CostCo has: 50+ Million customers, $64 Billion total sales annually. “$50 annual membership fee includes one household card”: $50 x 50 million customers = $2.5 billion, before anyone buys anything in the store!
DUBLI'S COMPETITIVE ADVANTAGE
·         Find anything you can buy online, faster
·         Fun, entertaining shopping
·         50% to 100% off potentially savings on new items!
·         Free credits for referrals!
Never buy online without checking for potential savings at DubLi.com!

CORPORATE INFO
·         Revenue: No data is available. This is scheduled to change in Feb., 2010, when DubLi releases their financial data to the public.
·         Financial backing: Active Capital Partner Ltd. (Financing)
·         Business Registration: DubLi.com LLC (Holding), 702 West Street, Wilmington, DE 19801, Registration no.: 4153725
PRESS
·         Yahoo Finance: "MediaNet Group Technologies, Inc., operating the largest online mall and affinity program platform through its BSP Rewards subsidiary, today announced that it has further expanded its client base with the implementation of a new partnership with DubLi, an international e-Commerce auction site and direct sales marketer."
·         Obtainer Magazine, Oct. 2009: "DubLi is not only known for its exceptional and trend-setting business ideas, but also for top-notch strategic business decisions. Now, DubLi pulled off the non-plus-ultra in strategic management: as a large but privately-held company, DubLi merges with a smaller, but public company making its own IPO easier. This specific kind of company merger is called a reverse merger."
·         JordinSparkesCharities.com: DubLi.com partnered with Jordin Sparks, winner of the American Idol competition at 17, for DubLi’s first every charity auction in December of 2008. The Unique bid auction ran from December 1st to December 26th. Over 2,000 customers participated; netting $2,000.00. DubLi contributed 100% of the credits spent, 100% of the proceeds, and added an additional $3,000 to create a donation of $5,000.00 to Spark’s Charities. The ceck was given to Jordin Sparks by CEO Michael Hansen in Phoenix, Arizona in January of 2009." For more about this, see the DubLi press release.
·         JoeMorganYouthFoundationShop.com: Baseball Hall of Famer and current ESPN commentator Joe Morgan resides in the San Francisco Bay Area and is an inspiration to all who know him. His community interest, patience and love for children, family example, and general concerns make him an exceptional individual. He contributes personally and financially to the Young America Baseball Program, the Oakland Unified School District Sports Program, and is Founder and President of the Joe Morgan Youth Foundation, which provides college scholarships as well as financial support to programs that are instrumental in the development of youth.
·         American Red Cross, Orange County, CA, Chapter: On their page, click "Shop for the Red Cross" to see their DubLi Auction site. The site says, "Do you want to help the Red Cross by harnessing your purchasing power? Learn more by clicking here."
·         Blessings In A Backpack: Lists DubLi as one of their Corporate Partners.
·         DubLi Inside Magazine (pdf)
The Power of Compounding
·         A Penny Doubled Every Day Story.pdf (pdf)
·         A Penny Doubled Every Day Chart (pdf)
TIMING IS EVERYTHING
Combining the right trends with the right product leads to a tidal wave of growth that creates a vast number of wealthy entrepreneurs after they have worked hard at the right time. Those who make the majority of the money with a direct sales company, whether by purchasing stock or by becoming a representative, usually join the company sometime before or around the point it hits $50 million in annual sales. This has been illustrated so many times by so many companies that today this concept is common knowledge. As strong as the DubLi story is, we're not at the $50 million mark yet! Hardly anyone has heard of this company - the time is now, so don't miss it!

NEW NETWORKING HYBRID MODEL
·         No Weekly Hotel Meetings
·         No monthly orders or autoships
·         No monthly quotas
·         No other expenses, fees, charges
WEB TRAFFIC
You won't find any reliable traffic data from Alexa.com, since most people are visiting rep websites, not the actual www.dubli.com site, and Alexa can't add up total traffic to affiliate sites (we checked this before we joined DubLi). Even so, the Alexa traffic numbers for DubLi are growing rapidly, up 21% in the first quarter of 2009.

LEGAL
If you're like us, you may be somewhat concerned or wondering if there's a potential gaming element to DubLi's auction site, and you may also be concerned that regulators might obstruct DubLi's business. We certainly didn't want to invest a huge amount of time and effort, only to get shut down or derailed by government intervention. After researching DubLi, I found that it isn't gambling, isn't on the "edge" of legality, that DubLi has already been thoroughly reviewed by regulatory bodies and confirmed not to be a gaming site. Below we have one example of an independent attorney who wrote a review of DubLi.

Sometimes you may hear a comparison mentioned between DubLi and a lottery. The point is that people don't get discouraged when they fail to win the lottery and therefore keep buying tickets, and people for the most part won't get discouraged and will keep trying to win a DubLi auction. So it's not a comparison of products but rather a comparison of people's reaction to what results they get from spending their money.

Another thing that may be helpful: look at the DubLi.com site and think about how much money DubLi invested in it, along with the rest of their business operation. Isn't it common sense that if you spend a fortune on a website and business model, that you'll also spend a significant part of your investment on attorneys and consultants to make sure you're in compliance with regulations?
·         Independent Attorney's Opinion On DubLi and Gaming Laws (pdf)
·         Response-to-Negative-Press (pdf)
WHAT'S THE RISK?
A pragmatic approach to consider your risk: if you spend $800 (or $3200 if you're bold) to join DubLi, what do you get for your money? For $800, you get 800 credits, which can be used to shop and get many things of value. If you don't like the business, simply use your credits and you may break even or come out ahead, but you're really not exposing yourself to anywhere near 100% loss.

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