Internet Retailer: Shoebuy.com reports profits from favorable e-marketing deals

The two [Shoebuy.com founders] figured that the advertising market was about to shift, resulting in terms more favorable to buyers. So they set out to sign advertising contracts only if the terms let them pay for advertising that resulted in a sale.

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Shoebuy supplements its online advertising with e-mail marketing to a list of about 400,000 customers who have registered their e-mail addresses. "We find the most effective part of our e-mail campaigns is letting our members know when we area launching new styles of a brand they like to buy," Savitz says. He adds that e-mail is an essential tool for retaining customers. "It proves to be a huge complement to our other online advertising," he adds.