PowerReviews Insider

As a second-time entrepreneur (the first company was Fogdog, an online sporting goods retailer), I have learned how important it is to be open-minded and flexible in tough times. At Fogdog, founded by Robert Chea and myself in 1996, we experienced the go-go Internet days of 1998 and 1999, as well as the unexpected and sudden downturn in the Internet economy, financing market and overall economy in 2000. Robert and I learned then that it’s critical to be proactive during economic downswings in order to minimize their effect.

Today, we are addressing the downturn in the following ways:

• First, we have moved from a “subsidized pricing model” (where Buzzillions subsidizes Clients who share content with Buzzillions) to a “paid subscription” model, with monthly subscription fees considerably lower than other players in the market.
• Second, we have created “PowerReviews Express” a lower-cost delivery model (starting at $80/month), aimed at the 200,000+ small and medium-sized online retailers and brands, with tools to make set-up and management of reviews much more efficient – for clients and for us.
• Third, we have significantly expanded our revenue base with the launch of three new products, all of which are meeting or exceeding sales expectations.
  • AnswerBox – a question and answer solution for knowledgeable customers and staff experts to address questions posed by shoppers not yet ready to buy.
  • In-Line SEO™ – a breakthrough SEO feature that sends reviews-based search traffic directly to the product page where it generates the greatest sales uplift.
  • PowerReviews Express™ – described above.
• Lastly, we are realigning our organization and reducing our headcount by seven people.

With the revenue enhancements, investments in our delivery model, headcount reductions and the continued growth of Buzzillions, we believe that we are doing what we need to ensure we stay healthy and not only weather the storm but thrive in 2009.