Flooz, AmericanGreetings.com Extend Pact
Under the agreement, the companies will continue to enable users to send Flooz online gift currency with AmericanGreetings online greeting cards. The deal also calls for integrated, co-branded offerings to remain on their Web sites through 2002.
There are no new terms to the partnership, according to representatives from both companies.
Formed in September 1999, the agreement was made in hopes of acquiring customers for Flooz while creating a revenue opportunity for AmericanGreetings.
"We've reached a place where the numbers work," said Robert Levitan, CEO at Flooz, New York.
Levitan did not reveal Flooz's customer acquisition figures, but he said the company has more than 900,000 Flooz accounts in its customer database. A small portion of those accounts was generated through the AmericanGreetings partnership over the past year, he said.
Nancy Davis, acting director of communications at AmericanGreetings, Cleveland, reported that users delivered nearly 12 million AmericanGreetings cards in October and are expected to deliver some 14 million in November. That Web traffic, she said, provides Flooz with good exposure to acquire customers.
"The nature of electronic greeting cards is that it is viral marketing, so you get two for one," she said.
Meanwhile, Levitan reported that Flooz is set to launch a holiday promotion Thursday that will allow users who send any gift of flooz worth $40 or more through AmericanGreetings to add $10 to that amount without charge.