Interesting developments at NetCentives (ClickRewards)
Aug 2, 2000 | 12:34 pm
#1
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Interesting developments at NetCentives (ClickRewards)
I was looking through NetCentives (parent of Clickrewards) most recent 10-Q, their SEC filing for quarterly results, for the three months ending March 31, 2000 (Click here for their SEC filings and select the 10-Q dated 5/5/2000 to view it in its entirety).
Anyway, two big developments that I hadn't known before ...
1) NetCentives bought MaxMiles for about $11.3 million in stock and options. MaxMiles is a about three years old and a company based out of Chicago, and if I recall correctly was started as a Business school project. I can't imagine they had more than a few employees, but it looks like someone made a good chunk of change off of this.
2) NetCentives bought UVN Holdings, Inc., SHC Venture, LLC, and the outstanding minority interest in UVN's majority owned subsidiary Universal Value Network, LLC for $23 million in cash, stock, and options. I had never heard of this company, but after reading the description of the company's business, I recognized it immediately. These are the folks who run SkyMiles Shopping and other similar programs.
This one is of particular interest, especially considering some of the horror stories about getting miles through these programs. NetCentives prides themselves on customer service (they even say so in their annual report), hopefully once they fully integrate these subsidiaries we'll see an improvement in these programs.
Of more importance the reason NetCentives bought this company is so they could use the technology to extend the ClickRewards program to offline merchants, something to look forward to in the future!
Anyway, two big developments that I hadn't known before ...
1) NetCentives bought MaxMiles for about $11.3 million in stock and options. MaxMiles is a about three years old and a company based out of Chicago, and if I recall correctly was started as a Business school project. I can't imagine they had more than a few employees, but it looks like someone made a good chunk of change off of this.
2) NetCentives bought UVN Holdings, Inc., SHC Venture, LLC, and the outstanding minority interest in UVN's majority owned subsidiary Universal Value Network, LLC for $23 million in cash, stock, and options. I had never heard of this company, but after reading the description of the company's business, I recognized it immediately. These are the folks who run SkyMiles Shopping and other similar programs.
This one is of particular interest, especially considering some of the horror stories about getting miles through these programs. NetCentives prides themselves on customer service (they even say so in their annual report), hopefully once they fully integrate these subsidiaries we'll see an improvement in these programs.
Of more importance the reason NetCentives bought this company is so they could use the technology to extend the ClickRewards program to offline merchants, something to look forward to in the future!
Aug 2, 2000 | 4:30 pm
#3
Join Date: May 2000
Location: Fairlawn, Ohio, USA
Posts: 292
One other very important note is that NetCentives' Click Rewards program is supposed to be integrated in one way, shape or form into the new AOLAAdvantage program as I was reading. With these new partners, this could make AOLAAdvantage very lucrative for us FFers! I am looking forward to see which new partners will be joining ClickRewards, their retailer list has become quite stale lately and I would like to see some better opportunities to purchase computers, groceries or more everyday purchases...Just throwing out some ideas!
Bob Linderman
Akron, OH
Bob Linderman
Akron, OH
Aug 3, 2000 | 6:38 am
#4
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I don't think we'll see an "integration" of the ClickRewards and AOL/AAdvantage program, but NetCentives is running the AOL/AAdvantage program for AOL and AA. I doubt you'll be able to redeem AOL/AAdvantage points for miles on another airline ...
Aug 4, 2000 | 7:08 pm
#5
Join Date: May 2000
Location: Fairlawn, Ohio, USA
Posts: 292
Thanks for the clarification, Beckles!
I think you are correct with your assessment. In fact, according to the press releases, NetCentives is developing some kind of "engine" for the AOLAAdvantage program. It certainly will be interesting to see what AOLAAdvantage really has to offer to the AAdvantage program. I think we are all hoping for something very lucrative. They are touting that it will be one of the largest marketing incentive programs in the world. In order to accomplish this, they had better make it "sticky" for the members of the program.
I think you are correct with your assessment. In fact, according to the press releases, NetCentives is developing some kind of "engine" for the AOLAAdvantage program. It certainly will be interesting to see what AOLAAdvantage really has to offer to the AAdvantage program. I think we are all hoping for something very lucrative. They are touting that it will be one of the largest marketing incentive programs in the world. In order to accomplish this, they had better make it "sticky" for the members of the program.