Last summer, a tiny Bahamas-based online travel agency named Travelzoo.com Corp. shook the marketing foundations of the Web. The company offered “free” shares of Travelzoo stock in blocks of up to 10 shares to the first 700,000 Web surfers who registered at its Web site. Registrants initially received an electronic credit for three shares and “earned” another share for each additional registrant who they referred to the site, up to a maximum of 10 shares. [FOOTNOTE 1]

The offer spread like wildfire. E-mail “chain letters” passed from person to person. An inaccurate “urban legend” sprang up among registrants that Yahoo! had done the same thing when it went public. [FOOTNOTE 2]In a matter of weeks, 700,000 Web surfers signed up at the Travelzoo.com Web site. As the number of visitors to the site increased, so did the site’s advertising revenue. For the quarter ending Sept. 30, 1998, Travelzoo.com reported its first profitable quarter ever. [FOOTNOTE 3]

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]