Multimillion lure to cyber-shopping

By CHRIS BARTON

If collecting vast numbers of "sticky hits" is the mark of a successful web site, Global-e Investments has the perfect flypaper.

The company is betting that subscribers will want to visit its site every day for 20 years to check whether they've won the daily prize draw. - www.global-ebonds.com -

Part of Global-e's investment scheme is that buyers of each of its $US1060 e-bonds will also be offered $US15 options for 300 shares.

"They're options to buy stock in a global e-commerce company, and they get in on the mezzanine floor," said director Ron Ryan, founder of New York investment manager Ryan Labs.

Chief executive Damian Archbold said Global-e's plan was to sell one million bonds and create a private online community of about 300,000 customers.

Bondholders will be offered discount prices on goods and services, arranged through bulk purchasing deals, and will be encouraged to open an account with Global-e so they can buy safely through the Internet.

During the start-up phase - when the daily prize will be $US10,000 - the site will gather demographic and buying habit information about its users.

It will also offer personal account managers to search the net at no charge for the best price on whatever product or service bondholders want. Such searches could include finding products such as low-cost airfares, or information such as details of health treatments.

The concept is not unlike New Zealand's E-force (formerly Paynter Timber), which is also trying to build an online community on a smaller scale by issuing warrants for a parcel of 500 shares at 30c a share.

Similarly, Compass Communications' Freenet, launched a week ago, is creating a pool of online buyers by offering 10 hours a month of free Internet access.

Global-e's annual payout of up to $US39.6 million in prize money is its main marketing effort, although it will also be running a "multimillion" advertising campaign.

In its first year of operation, Global-e says it will spend $50 million building its e-commerce infrastructure.

The company has already spent $4 million establishing its New Zealand office and call centre.