Newsstand - WEBMILES secures $34 million in 2nd round financing

WebMiles, the first to offer an unrestricted free travel rewards program to help businesses attract and retain long-term customers, today announced it has secured $34 million in its second round of funding from strategic and financial investors including Patricof & Co. Ventures, Inc., Maritz Inc., NBC, Sequel Ventures, Utah Ventures, Svoboda Collins, Star Vest, CMS, @WorkVentures and Staenberg Private Capital. The new financing will be used to fund an aggressive brand-awareness program and advertising campaign designed to attract new business partners and consumers alike. The company also has plans for rapid expansion of WebMiles' infrastructure to support the company's fast growth and increased demand for its services.

Launched in January 2000, WebMiles provides online and offline businesses with WebMile rewards- similar to airline miles- that are redeemable for free travel on all airlines, all flights at any time with no blackout dates or seat restrictions. Consumers earn WebMiles rewards for engaging in a variety of behaviors including shopping, joining programs, referring friends, etc., within the WebMiles partner network. In the second half of 2000, members will also be able to earn additional WebMile rewards by using a co-branded credit card, which allow them to earn WebMile rewards twice as fast. Membership is free and starting with as few as 8,000 WebMiles rewards, members can start to redeem for discounted or free travel.

This was first introduced to us by Beckles, I believe, last January. Free travel, without the restrictions of traditional FF programs. WebMiles rewards can be redeemed for free travel on all airlines, all flights, at any time, without blackout dates or seat restrictions.

They provided 1,000 FREE WebMiles rewards just for signing up and another 250 for doing a brief member profile! If you aren't yet a member, all you need do is click to join http://www.webmiles.com/pgMemberJoin?memid=234311642

and they will also provide 250 pts to the referrers, in this case me if you don't mind!

They will likely be around for awhile! http://www.flyertalk.com/forum/wink.gif

Apologies in advance for posting in the wrong forum! Sorry! http://www.flyertalk.com/forum/smile.gif


[This message has been edited by doc (edited 05-09-2000).]

There is already an ongoing thread with "conga line" for Webmiles.

This is pretty newsworthy in that I don't believe this concept has much of a future (you need to spend $8,000 to get to the first award level) which really amazes me that they won investments of $34 million??? For comparison, Netcentives (the parent of Clickrewards) market capitalization is $560 million, and that's for an established company with much more of a future I think.

Also:

WebMiles announced that James G. Clarke, a former Director of American Airlines AADVANTAGE program, has joined the WebMiles team as the Director of Partnership Marketing. In his new role, Clarke is responsible for developing marketing strategies to help build the WebMiles partner network, create new loyalty products and segments, and manage the company's channel marketing efforts.