Parable Ups Online Profit Share as Incentive for Stores

New 50-50 Split for Online Sales Helps Stores Grow Online Presence

Monday, July 9^th—Atlanta, Georgia, CBA 2001—Parable Interactive announces a new 50-50 revenue split with all Parable member Private Label eStores. Parable Christian Store owners with a privately branded eStore will now enjoy larger revenue from online sales jumping from 20% of gross profit, to 50% of gross profit.

Steve Potratz, founder of The Parable Group, became convinced during regional meetings with storeowners that the previous revenue split hindered stores from fully embracing their eStore. “With the previous split, some thought they were making less on the Internet than they were in the store,” says Potratz. When one considers the cost of salaries, rent, and other overhead that doesn’t exist on the Internet, online sales are actually just as profitable. “The new 50-50 split now makes online sales more profitable than traditional brick and mortar store sales,” adds Potratz.

The 50-50 program also reinforces the importance that stores serve their customers well in every channel. Ron Johnston, president of Parable Interactive, explains: “Retailers like L.L.Bean and JC Penney have proven that customers who shop multiple channels—the Internet, the phone, and in-store—spend four to eight times more per year than customers who only shop one channel.” The 50-50 revenue split encourages them to use the Internet to grow their businesses, according to Johnson.

To continue helping stores grow their online store, Parable will also offer an HTML, a full-color, full-graphic email subscription service to stores this August, as well as in-store seasonal kits dedicated to promoting the store’s Private Label site. For the HTML subscription service, stores will choose which email promotions they want to send their customers each quarter. Parable will design and send the HTML email on behalf of the store. Johnston comments, “The email subscription service allows stores to keep in touch with their customers frequently and

-more-

E-Commerce Revenue Split, page two

inexpensively, in a visual and attractive way.” The in-store kit will change seasonally to match other in-store promotions and includes posters, stickers and bookmarks, each customized with the store’s Private Label web address. Both Potratz and Johnston believe the kit and email campaign will drive consumers to the store and the website, creating greater continuity between each channel.

Potratz believes the new revenue split, email campaign, and in-store kit to show Parable member stores that e-commerce is the future of full-service retailing: “The stores’ Private Label site is the most effective ‘catalog’ and really, the only complete catalog they can offer to customers, with over 110,000 items, many of which aren’t even available from other sources. It is a perfect vehicle for special orders in-store.”

Parable.com is consistently ranked higher by customers in overall ratings than barnesandnoble.com, borders.com and booksamillion.com, according to the e-commerce rating site, BizRate.com®. Parable Interactive is a Parable company specializing in privately branded e-commerce sites for non-profit Christian ministries and Parable Christian Stores. Parable is a California-based marketing and retail services company representing over $325,000,000 in annual sales of Christian products to consumers.

# # #

Parable Ups Online Profit Share as Incentive for Stores

New 50-50 Split for Online Sales Helps Stores Grow Online Presence

July 9, 2001