MemberWorks To Invest $50 Million in Internet OfferingsMemberWorks Inc., a Stamford, CT, membership club and affinity marketer, yesterday said it will invest more than $50 million during the next six quarters to increase its presence on the Internet.
The company said the investments would have a negative effect on its earnings during that time period.
MemberWorks unveiled its Internet effort as part of a four-pronged strategy to grow its core membership business. Other components of the strategy include the diversification of its member acquisition channels and partner marketing base, the global expansion of its affinity membership marketing, and increased technology investments in its operating infrastructure.
As part of its more aggressive foray into online activity, MemberWorks said it will launch Web businesses in "areas of high consumer demand," including health, finance and personal information.
On Feb. 23 the company agreed to merge its ConsumerInfo.com Web site with eNeighborhoods to form a new company, iPlace.com, that will allow consumers to access their personal credit information and also allow them to investigate home valuations by neighborhood.