Message #26 From:
Stock News Bot Date: January 3, 2007 06:03:00 AM
PAYD News Paid Inc. Issues Corporate Update, Shares Vision for Growth
WORCESTER, Mass.--(BUSINESS WIRE)--Paid, Inc. (OTCBB: PAYD) today announced that it plans to expand its
celebrity services business product offering as part of its overarching
efforts to better serve existing clients, engage fans at all levels with
desirable offerings and interactive content, and attract a broader range
of fan communities as clients.
Working closely with the performing artists and sports entities and
incorporating feedback from fans, Paid creates enticing fan
environments, interactive web communities, special product offerings,
and ticket packages that brings fans closer to the celebrities they
admire. Paid’s celebrity services offering
provides greater access to celebrities and memorable experiences that
build fan loyalty and goodwill while providing a valuable service to the
celebrities and athletes.
New Business Development
As Paid builds its celebrity services business, its plans to expand
beyond musical artists and athletes to service a broad range of events
and online communities that attract large numbers of loyal fans on a
consistent basis.
Paid Celebrity Services President Keith Garde said, “Our
initial strategy was to attract major musical artists and sports figures
with well-established fan bases as clients, and we will continue to
pursue this market. In addition, as evidenced by our recent contracts
with mixed martial arts and professional bull riding events, we’re
looking beyond traditional sports and artists for potential clients with
large and growing fan communities who desire interaction with the
celebrities and fellow fans who share a common interest. These two
mushrooming activities, in particular, are rivaling traditional sports
for drawing highly desirable demographic groups. Additionally, they have
a large number of events that recur seasonally or run year round,
potentially providing a reliable revenue stream year after year. We will
look to develop new business opportunities with similar types of events.”
Technologies
Evolving technology is driving fans to the Internet to communicate with
their favorite celebrities and each other. The celebrities are faced
with the issue of how to effectively communicate and build loyalty with
their fan bases.
“Fans expect celebrity web sites to be cutting
edge, interactive and utilize the latest video and audio technologies so
they can experience some aspects of a celebrity’s
performance and persona from the comfort of their own home,”
Mr. Garde noted. “Paid has identified several
areas where it can acquire or partner with vendors who have technologies
or services that are desirable to Paid’s
existing and potential client base. As we move into 2007, we plan to add
several new capabilities and technologies to our offering and continue
to seek out additional ones that will further enhance our value
proposition. Some of the technologies we have identified solve problems
that have long challenged the entertainment and sports industries. We
believe that creating a relationship with certain technology providers
will provide us with a significant competitive advantage and will
enhance the fan experience.”
A differentiator for Paid is its strategy of having a broad array of
technologies and services in-house, rather than outsourcing, so as to
have greater control and provide a higher level of service to clients
and consumers. Currently, Paid’s in-house
technologies and services include:
E-commerce storefront software to enable online merchandising and
reporting;
Proprietary advanced ticketing module integrated into its back-end
ecommerce system. The system is capable of withstanding heavy traffic
and has had minimal downtime;
Proprietary patent-pending AuctionInc™
shipping calculation technology is at the core of Paid’s
ecommerce checkout module so shoppers can see real-time shipping costs
and choose the best shipping method. The system easily accepts changes
in product offering for huge time and money savings;
Proprietary content management software;
Paid Authentic – online authentication
verification for memorabilia provided by celebrities as part of a
broader effort to help them monetize their brands in innovative new
ways;
Video production, editing and broadcasting to provide streaming audio
and video on client web sites;
NFL player representation by agent Kristen Kuliga;
Brand management;
Special event management; and
Sports marketing, including negotiating speaking engagements and
endorsements.
K Sports founder and VP of Paid celebrity services Kristen Kuliga said, “Paid’s
K Sports business has retained high profile NFL and other professional
athletes as clients due, in a large part, to our devotion to personal
attention and our ability to strike favorable deals for clients with our
extensive network of contacts. Paid’s
services, such as Paid Authentic, Paid Sports™
memorabilia, sports marketing, event management and fan club management,
create synergies for an unmatched menu of off-the field support that is
in demand by professional athletes. Moving into the new year, we’re
managing more special events, such as the Doug Flutie Charity Golf
Tournament and the Sister to Sister Women’s
Heart Day, that provide excellent networking opportunities with
potential clients in both the sports and entertainment fields. Several
of Paid’s current contracts evolved from
contacts initially made through K Sports.”
Numerous online communities that offer a high level of interactivity,
such as secondlife.com, are experiencing phenomenal growth in their
traffic and paid subscription base. Consumers generally start with the
free, basic-level membership and, as their interest grows, they opt to
purchase a paid membership to access additional premium interactive
content.
Paid CFO and COO Rich Rotman observed, “Paid
has designed many of its online communities for clients with similar
free and paid subscription structures to meet fans’
varying interest levels. Moving forward, we are looking to acquire
and/or provide a broader array of technologies and services under the
Paid brand that enhance the degree of interactivity and ultimately
attract more fans to our clients’ online
communities.”
Mr. Rotman noted, “No matter how advanced our
technologies become, Paid is committed to keeping the personal touches
that make the fan clubs better organizations. This policy is exemplified
by our allocation of premium ticket inventory to bump senior fan club
members up to better concert seats at no extra charge. Additionally, we
are committed to maintaining our track record of providing proactive
communication with fan communities and excellent customer service. These
set us apart from other celebrity and community management companies and
remain key factors in attracting clients.”
Rotman added, “I’m
pleased with our year over year growth in the online technologies and
services we provide. We’ve increased revenues
and improved our bottom line, and our fan community services are really
starting to take off. This is an explosive growth area and we are in an
excellent position to leverage it for the benefit of all parties.”
Patent Application Update
In May 2006, Paid received from the U.S. Patent and Trademark Office
(USPTO) a verbal notification of allowance for online shipping
calculation processes used in its AuctionInc shipping calculation
technology. Paid and its attorneys at Hunton & Williams, LLP continue to
work with the USPTO and remain confident that they will receive the
formal notification of allowance and issuance of the patent. Pending
receipt of these items, Paid will pursue a variety of possible revenue
streams from its AuctionInc platform and patent which hosts a suite of
management tools and enhanced shipping calculator solutions for
ecommerce enterprises.
In the meantime, Paid’s list of registered
AuctionInc users has grown and Paid continues to enhance its AuctionInc
software solution to maintain its position as one of the most robust
shipping calculation solutions available. Full details on the AuctionInc
solution are available at http://www.auctioninc.com/.
Conclusion
Greg Rotman, Paid CEO said, “Keith Garde’s
appointment as president of celebrity services is a tremendous asset to
Paid, and his expertise in the entertainment industry will be invaluable
in helping us formulate and execute our business strategies. As we grow
our celebrity services client base, provide a broader array of services
and have more events taking place at any given period of time, we begin
to realize economies of scale and we will see our expenses decline
further in relation to the revenue stream generated from celebrity
services business.”
“We ended 2006 on a high note with several
new contracts coming in and a high level of activity for our existing
client base,” he continued. “With
the activities we are planning with our clients for 2007, we expect this
momentum will continue. We’ll soon be
launching our new corporate web site that will help us keep visitors up
to date on developments within the Company.”
Rotman stated, “Our celebrity services
business model makes sense and fills a very large market need. The
investment community has been watching us very carefully, as we are
about the only public company in this space that has traditionally been
occupied by private companies. Very recently, entertainment-oriented
funds and investors have started to buy into the stock based on our
business model, coupled with key appointments and client wins announced
in the fourth quarter. We expect to attract more attention as we
continue to execute our business plan and achieve our objectives. As
difficult as it is to patiently wait for the patent issuance, we believe
that when it arrives, it will create a substantial new revenue stream
for an already solid, growing business.”
About Paid, Inc.:
Paid, Inc.’s celebrity services provides
celebrities and organizations with official Web sites and fan club
services that include e-commerce storefronts, ticketing and fan
experience packages, and website content, such as news, polls, message
boards, contests, biographies and custom features to attract tens of
thousands of visitors daily, as detailed on its website, www.paidcelebrity.com.
The Company also sponsors autograph signing events and other sports
marketing services for sports clientele. Using proprietary
patent-pending technology, Paid's innovative AuctionInc brand shipping
calculation and auction management software and services are utilized to
streamline online auctions, ecommerce and website development and
hosting. The Company's common stock is traded on the NASDAQOTC Bulletin
Board under the symbol PAYD. For further information, visit http://www.paid.com.
Forward Looking Statements:
This Press Release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934 that are based upon current
expectations or beliefs, as well as a number of assumptions about future
events, including matters related to the Company's operations and
expectations about celebrity programs and fan club activities. Although
the Company believes that the expectations reflected in the
forward-looking statements and the assumptions upon which they are based
are reasonable, it can give no assurance that such expectations and
assumptions will prove to have been correct. The reader is cautioned not
to put undue reliance on these forward-looking statements, as these
statements are subject to numerous factors and uncertainties. In
addition, other factors that could cause actual results to differ
materially are discussed in the Company's most recent filings, including
Form 10-QSB with the Securities and Exchange Commission.
