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2010 Product Review – Our Certificate Program “Star Rebates”

Over the next few days I’m going to send detail information on our products and invite you to review and see how these products could be used in your business. With our products, Video Presentations and documentation all your questions will be easily addressed.

The majority of the information below was compiled and provided by my associate and Franchisee owner Angela Smith of Direct Strategies, Inc.

Rebates:

The definition of a rebate is important for you to understand. If you do not understand it, then you will review the Terms & Conditions and think they are harsh. Rebates are our most popular program but they do require work. The definition of a rebate is that you need to do things in order to obtain your rebate. We offer other products which programs are much simpler, but the rebate program has the biggest “wow” factor. You have to decide what is best for you. I would like to outline below the benefits and possible challenges of rebates so that you can make a clear decision. Our site allows you to take a “Demo” tour of our system.

Benefits:

* In the rebate program the customer receives $100, $300 or $500 based on the rebate you select. The way that they receive this rebate is they either get a $20 visa gift card each month until it has equaled $100, $300 or $500 or by simply providing a credit card number, they can receive a $20 credit to that number every month until they reach the full value of the rebate.

* The customer enjoys their rebate by going to the web site www.MonthlyGiftCards.com and entering their pass code and expiration date. After they enter that information they simply fill out the registration form and send it in within ten days with a $12.95 registration fee. The registration process takes less then a minute.

* During the registration process they must select a brand that they plan to shop at in order to obtain their rebates. So if they select a fuel rebate, they have to select a gas brand like Exxon or Shell or any other brand and they must shop their each month and send in $100 in receipts from that brand in order to collect their $20.

* The two most popular rebates are food and fuel because most people can spend $100 a month in food and $100 a month in fuel so they are not being asked to do anything more then they would otherwise do. If they do not spend $100 a month or they spend it at the wrong store then they cannot submit those receipts for that month’s $20. But they are not disqualified from the program, they just miss that one month.

Possible Challenges

* Point #3 of the Terms & Conditions explains to the customer that once they register they have ten calendar days to send in their registration form along with a $12.95 cashiers check or money order. This is done so that the rebate company does not receive bad checks with no recourse.

* Each household is permitted to submit one rebate certificate per type per year. There are five types, so each household could have one food rebate, one fuel rebate, one dining rebate, one pharmacy rebate and one retail rebate.

* The redemption process is an online process which has worked wonderfully for both the rebate company and the customers. Each month the customer goes to www.MonthlyGiftCards.com and clicks on the button labeled “add a receipt.” They enter for example $50 at BP Oil. The reason this system is so successful is because the system will tell you if you made a mistake or if you are pre approved. So at the end of the month, simply print out your Pre-approval Form and send it in with your receipt and you already know you are pre approved so you will either get $20 credited to your existing visacard or a new $20 visa gift card – whatever you select. Because this is an online process, some customers may not be able to easily take advantage of the program – if they do not have access to a computer.

* Finally, if you get the $20 credited to an existing Visa, then there is no expiration date to use that $20. If you get a visa card, you must use your credit within 90 days or there is a $5 monthly charge to the card. Rebates have the “wow” factor that lots of businesses want but they also have hurdles as is inherent in the word “rebate.” Prior to our work with Star Rebate, which has been in business for 12 years and has an A-Rating with the BBB, there have been two other rebate companies that have gone out of business. Those companies that went out of business appear to have planned to go out of business from the beginning as they had no $12.95 registration fees, they charged small amounts of money for their rebates and they had no controls in place as does Star Rebate. For example, Star Rebate has advertisers on www.MonthlyGiftCards.com. These advertisers help support the program.

Rebates make their money on non-usage. In a way, it is sort of like the insurance business. Everyone buys homeowners insurance or even life insurance but if every home burned down or every person died the same day, then the insurance company would go out of business. In the rebate business, the company has been around for 12 years and they have a tried and true model where only 20% of all rebate customers redeem. Some register and forget to send in their $12.95. Others don’t send in their $12.95 because it is not worth it to only get back $20. A rebate program requires a lot of work by the customer and because “life happens”, the majority of people don’t follow through the length of the program. If you look at all of your membership companies today, all of those membership companies give away tremendous benefits that cannot be afforded with a $9.95 membership fee. How do they do it? They do it because only 3% nationwide take advantage of membership benefits. Those statistics can be verified independently. So if you decide to do rebates, now you understand how the model works.

Only the Best,

Michael Goulet – Team Leader
Direct Strategies, Inc. – “The Incentive Pros!”
http://incentivesgroceryandgas.com

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