“Pay For Performance” Business Model

Yesterday, via snail-mail, I received an Offering Brochure for UpSnap ... a new tech company that has joined the Mobile Search Revolution; that is, search via cell phones.

They presented the following information regarding SMS – the abbreviation for Short-Message Service or Text Messaging:

* There are now more mobile phone subscribers in the world (2.5 billion) than there are landline phone subscribers and that number is expected to double to 5 billin by 2009. That’s about 2.5 times the number of current Internet users worldwide.

* There are currently about 100 million cell phone users in the U.S.

* The cell phone is quickly becoming a primary means of communication, not only for voice, but also for digital services, email, digital photos, GPS navigation ... and advertising.

* It is estimated that worldwide over 350 billion text messages are exchanged across the world’s mobile network every single month.

* U.S. cell phone users spend $2 billion every year on directory assistance.

UpSnap’s Text-Based 411 Directory Assistance calls are FREE to consumers. Merchants pay only for performance, customers who call them for their products and services. Merchants don’t pay for “advertising”, they pay only for results – calls that lead to sales that generate revenues.

It’s a No Brainer

Step 1: Send a message to UpSnap on your cellphone.

Step 2: Enter what you are looking for (“pizza”, “bookstore”, etc.) and your ZIP code, area code or local airport code.

Step 3: Wait for the results and punch in A, B or C for the vendor location of your choice and get connected.

When you place an order, the merchant pays for the results – not the advertising.