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Affinity ISPs find their niche
(IDG) -- Last week, Network World Fusion wrote about the new affinity ISP service that the Republicans are launching. This type of program is not new, nor is it unique in the world of Internet marketing today. In fact, many of the smaller "special purpose" ISPs out there use the affinity model. The model itself is very simple. An existing ISP, with all the infrastructure and support fixings required, lets a third party, like David Bowie or the Catholic Church (there's a pair made in heaven) create a customized private label ISP service. So users pony up their $19.95 a month thinking David Bowie's at the other end of the line making sure their packets are getting through.
Of course, David Bowie is probably nowhere near his data center. The ISP provides everything from the customized home page that users see when they first log on, to phone support and billing. Some ISPs think this is a great way to add customers without all the fuss and muss of marketing and advertising. They charge the group that wants its own ISP a minimum upfront fee and a recurring fee based on the number of customers the group brings in. Sounds like a no-lose situation for the ISP. In fact, Concentric is doing very well with its private-label ISP service. However, the affinity group faces some pretty large risks. They have to pay for the marketing to bring on thousands of users to pay that initial upfront fee. They have to convince existing users of other services to switch, no easy thing when you consider such things as the inconvenience of changing your e-mail address or even just your browser and e-mail configuration files. Unfortunately, most private label ISPs have yet to figure out the right model for bringing on the volume of customers they need to be profitable -- whether it's information only subscribers can get or just belief in whatever cause the service espouses. Still, like affinity credit cards, look for affinity ISPs to continue popping up.
RELATED STORIES: Microsoft offers voice over IP RELATED IDG.net STORIES: Net-enabled elephants: The GOP gets into the ISP biz RELATED SITES: GOPnet
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