AIFA kicks off referral marketing?!

[exit322]

Great, a pyramid scheme.

http://www.aifaprofootball.com/index.php?option=com_content&task=view&id=62&Itemid=1

DALLAS-(Business Wire)-March 6, 2007 - Expanding on an already extensive client portfolio of major and minor league sports teams, Smart Circle International(R) has announced its first ever, league-wide partnership with the American Indoor Football Association (AIFA). The Smart Circle's one-of-a-kind referral marketing approach, which is currently used by dozens of professional and collegiate sports organizations, including The New York Yankees, Philadelphia 76ers, Orlando Magic and Atlanta Braves will now help boost traffic and enhance brand loyalty while generating never-before tapped customers for AIFA's 15 teams throughout the country.

"Smart Circle International's long-standing history of successfully supporting major players in the sports industry speaks volumes to its unmatched expertise in this field," said Michael Mink, co-owner of the AIFA. "We want to introduce our league to a new segment of the sporting community and The Smart Circle brings the experience and professionalism we need to make that happen."

Through this unique partnership, The Smart Circle will develop team-specific special value offers - such as free and discounted home game tickets, luxury box seating, team memorabilia and other amenities - and introduce them to communities across the country in the form of its signature Smart Circle Cards.



"We've tried many marketing tactics in the past to raise awareness about our league and individual teams, but none have created that intrinsic fan interaction and loyalty we're looking for," said John Morris, co-owner of AIFA. "Through The Smart Circle's innovative marketing technique and experienced field teams, we're able to really cut through the clutter of less effective advertising and marketing tactics in a way that blends directly into our fans' lives."

The international company, which includes distribution offices in every major market in the United States, United Kingdom and Canada, harnesses the power of "referral marketing" to reach customers in their neighborhoods and in the workplace on behalf of its client partners. Now, local football fans will reap a wide range of benefits that they wouldn't be able to access from anywhere else.

For a consumer sale price of $29.99, the AIFA Smart Circle Cards will offer:

— Four free and four buy-one-get-one free $15 home game tickets

— $200 off of a "On-the-Field-Experience" or Luxury Suite

— Twenty percent off of a souvenir purchase

The Smart Circle's trained, professional field representatives will introduce these specially-designed promotional offers directly to consumers in their communities, whether at home or work.

In addition to supporting dozens of other professional sports organizations, The Smart Circle works with thousands of national and local businesses across North America and the United Kingdom to reach into communities and extend invitations to new customers on their behalf. The company's distinctive marketing approach allows clients to reach out to their target consumers in a uniquely personal way that provides a level of convenience unmatched by traditional retail advertising models.

"We have more than 18 years of experience supporting well-known clients in everything from sports and entertainment to hospitality and food service, but this is the first time we've had the honor of supporting an entire league with our referral marketing program," said George Graffy, president of Smart Circle International. "Our goal is not only to reward fans with great opportunities to see their local football team in action, but to create fun events that friends and families can experience together for far less than they thought possible."

About Smart Circle International

Established in 1989, Smart Circle International is the dominant force in referral marketing worldwide. Major companies turn to Smart Circle International to build traffic, enhance brand loyalty, fill unused capacity and generate new customers. Smart Circle International reaches consumers face-to-face through their community marketing networks which include the Public Sales Network, Private Sales Network and Fundraising Network to distribute promotional certificates on popular products and services on behalf of advertisers. http://www.thesmartcircle.com/ (The Smart Circle), http://www.smartcircleinternational.com (Smart Circle International), and http://www.smartcirclefundraising.com (Smart Circle Fundraising) are trademarks of Smart Circle International, Inc. These trademarks should not be confused with http://www.smart-circle.com/scinside.htm (Smart Circle), a United Kingdom company, http://www.nuvaring.dk/patient/smart_circle/ (Smart Circle) Germany, or http://www.outsmarttelecom.com/solutions3.htm (Smart Circles), a Centrex product.

More information about Smart Circle International is available at www.smartcircleinternational.com and www.smartcirclecentral.com/worldbusrevw2.cfm

About American Indoor Football Association

Established in 2006, the American Indoor Football Association (AIFA) was formed with the mission of providing a vision and environment that enables independently-owned companies and the organization's teams to successfully operate an indoor football league. With 15 teams located in cities across the country, AIFA strives to provide fans and community members with a unique and exciting indoor football experience. Current league teams include: the Canton Legends, Erie Freeze, Reading Express, Huntington Heroes, Johnstown Riverhawks, Danville Demolition, Pittsburgh Riverrats, Mississippi Mudcats, Tallahassee Titans, Florence Phantoms, Lakeland Thunderbolts, Carolina Speed, Baltimore Blackbirds, Montgomery Bears and Gulf Coast Raiders. For more information about the American indoor Football Association, visit http://www.aifaprofootball.com.

[TitanMisty]

Tallahassee Titans are not participating in this program. While it may be good for some teams, we are an independently owned Corporation and make our own business decision, this is not an opportunity we are looking to explore at this time. The AIFA should clarify who is participating as we are not the only team opting out of this.

[Sykotyk]

Good to know, it seemed very suspect when this announcement was made. It seems like the league is making decisions on behalf of the teams without their consent.

Sykotyk

[robertboyd]

Good to know, it seemed very suspect when this announcement was made. It seems like the league is making decisions on behalf of the teams without their consent.
Sykotyk
Actually it looks like just the opposite. Since not every team is participating (Three teams that I know of are not, Tallahassee, Lakeland, Mississippi), it looks like the AIFA is looking into options that teams may, or may not participate in depending on the team owners preference.

The promotion would most likely work in some cities, but not work in others. There would be various reasons why an owner might take advantage of such a deal.
1) Obviously it gets people in the door. While the profit to the tean owner appears to be very little, team owners could be making up the "lossed" revenue with percentage of things like parking and food vs the alternative which is an empty seat.
2) Some of the teams actually have a clause that says something similar to, if attendance goes above x per game, then rent goes down to x. Meaning that even though a team might be getting less revenue per ticket, their cost per person in the seat could drop drasticly if they get more people in the door.
3) Increased product sales, which means one more customer, wearing their shirts, hats, footballs, with one more customer doing the advertising for the team, with profit from those sales going directly into the budget of the team, vs the ticket sales, which is usually split with the arenas.

The AIFA is is looking into ways to help teams promote their teams, the teams are making independent decisions as to participate or not. Thas what leagues are supposed to do. Provided these promotions are not forced upon teams I have no problem with it.

[Tatonka]

I think the idea has the potential to work better in larger venues and when the particular team has alot of games, like hockey, basketball, or baseball.

With only six or seven home games, and giving away so many tickets, it's hardly necessary to come back and buy more tix at full price.

You are correct on the point about concessions, parking, etc., IF the team has a cut of that. In most cases, they do not. The only added revenue would be from merchandise sales.

I think the biggest problem most have w/ this is that the team is losing out on a very large portion of that revenue from the cards. Paying sales commissions usually runs from 10% to 25% depending on the team and what you sell... but Smart Circle is keeping 90% of the sales commission on the card. I think it's an interesting idea... but not on those terms.

[robertboyd]

I think the idea has the potential to work better in larger venues and when the particular team has alot of games, like hockey, basketball, or baseball.

With only six or seven home games, and giving away so many tickets, it's hardly necessary to come back and buy more tix at full price.

You are correct on the point about concessions, parking, etc., IF the team has a cut of that. In most cases, they do not. The only added revenue would be from merchandise sales.

I think the biggest problem most have w/ this is that the team is losing out on a very large portion of that revenue from the cards. Paying sales commissions usually runs from 10% to 25% depending on the team and what you sell... but Smart Circle is keeping 90% of the sales commission on the card. I think it's an interesting idea... but not on those terms.
Its actually fairly common to get a % of concessions, (albeit a small %) and parking depending if the parking area is owned by the arena, or an outside parking authority (or of course private parking lots).

Long as its a team owners choice to participate or not on an indiviual basis, and its not forced upon them, I have no problems with it. I would guess that if your purpose is to get people in the door, without "giving" tickets away, its an ok value for the team owners who are probably doing this with hopes of people coming back for the buy one, get one free seats, lower operating cost per seat, and increased "other" revenue. Without knowing how many people actually cash in on those buy one/get one free tickets, its impossible to analize if its a good deal or not.

I dont even think team owners can really analize the deal till the end of the season is over. I'll have to take a wait and see attitude to see if the marketing plan is repeated next year.

[AllTheRage]

Though it may be new in the AIFL, the Rage used it in the past with not a lot of success. That is not to say it can't work. It just didn't work for the Rage.

It may have raised the awareness of the team through more contact and word of mouth, but it did not translate into any sales windfalls.