The Wall Street Journal Interviews AIS Media Regarding Its Unique Partner Program Model

Posted on October 12, 2007 by Bill Dube

The Wall Street Journal recently interviewed AIS Media CEO, Thomas Harpointner, for his expert advice on some of the pitfalls of franchises and how AIS Media’s partner program differs from the franchise model. His statements include:

Other companies see little value in creating a network that doesn't have physical locations or brand recognition. "We did look into franchising...and after a very thorough evaluation, it just didn't seem right for our business," says Thomas Harpointner, co-founder of AIS Media, a Web-services and interactive-media firm in Atlanta.

Potential franchisees would be working from home or a small office, and really wouldn't benefit from the association with AIS Media -- at least not enough to justify the territory restrictions, franchise fees and royalties of a typical franchise agreement, Mr. Harpointner concluded. "There isn't a McDonald's of Internet consulting," he says. "Why would they pay a fee for a name that's not well-known?"

Instead, AIS Media launched a "partner" program, essentially a looser version of a franchise business. Partners buy AIS Media's products and services at wholesale rates and then resell them to customers at retail rates, keeping all of the profits. A partner pays a deposit of as much as $29,995, but gets that money back as performance goals are met, Mr. Harpointner says. A partner isn't as vested as a franchisee, but the program is a way "to attract serious-minded individuals," he says.

About AIS Media

AIS Media, Inc. is an award-winning developer and marketer of proprietary Web applications and professional Web services aimed to meet the needs of small and medium-size businesses. Specific AIS Media products include Excerpo® Storefront and Excerpo® Mail, which enables businesses to conduct e-commerce and run permission-based email marketing programs, respectively. Professional services include interactive media, web site development, credit card merchant services, search engine optimization (SEO) and managed hosting. AIS Media markets its services directly and through its global network of certified partners.