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DIRECT STOCK E-COMMERCE OFFERING
July 12, 2000
Direct Stock has secured a seven figure venture capital investment from Stonehenge
Capital Corporation to reshape directstock.com into an operation that can compete with
Getty and Corbis for on-line sales.
They plan to launch the new directstock.com on January 15, 2001 with both online and
in print promotions. The site will have total e-commerce capability with automated
multi-level pricing, billing and collecting and hi and low-res downloads. They will
need images by November 1, 2000.
Photographers will be offered space on directstock.com in packages of 30-35 images (for
approximately $1,275 for two years--under $20/image per year). Catalogue promotion
will also available at the modest cost of $1,275 per page. Because print drives buyers
to the internet, catalogues will remain a crucial element in Direct Stock's promotions.
Another feature that will separate Direct Stock from the competition is that they will
offer free links to photographer's personal sites where they can promote other stock
images as well as assignment capabilities. This adds value for buyers seeking more
depth on a subject or prospects for shooting assignments.
Direct Stock intends to provide experienced staff support for high-end off-line sales,
and top editors to maintain image quality. They will also supply expert guidance to
photographers.
To promote the site they will have an ongoing ad campaigns in all major print media for
creatives (e.g. CA, HOW, PRINT, PIX etc.) plus direct mail and catalogue promotion.
They intend to distribute three catalogues per year, one per selling season (Winter,
Spring & Fall) as updates and subject specials.
They expect to pay higher royalties to photographers than most agencies. The royalties
will be on a sliding scale of approximately 67% on low-end sales to 78% on high-end
sales.