Typically, SurfGold.com ties up with affiliates and users are awarded points for browsing, registering, shopping or visiting their sites. These points can be accumulated and redeemed under various categories like restaurants, music and entertainment, gifts, travel etc.

With the new tie-up, SurfGold points can now be exchanged for tsn's own loyalty points - e-chips - and vice versa, widening the range of redeemable items for both parties. A tsnshop.com client could redeem SurfGold points at any of its 20 redemption partners like Adidas, Baskin Robbins, Bharat Petroleum etc, while SurfGold surfers would gain access to tsnshop's 4000 odd products and 70 brands. Similarly, SurfGold's database of 75,000 members in Singapore will be prospective customers for tsnshop. ``The arrangement is unique, as for the first time we have tied up with a company, where they are both our clients and redemption partners,'' says Mr Siddharth Reddy, general manager, SurfGold.com (India) Pvt Ltd.

Through the tie-up, tsn is also targeting the Singapore market, trying to draw more traffic and increase its e-commerce activity. Says Mr Biren Ghose, CEO, tsnshop: ``The tie-up will enable our shoppers to redeem/avail offers from as many additional channels and with various currencies at their disposal. This will also result in additional traffic, since customers would seek out shops that reward their loyalty.''

The tie-up is still evolving and may be extended to include giving away of points for registrations (any SurfGold member who registers with tsn) and other activities.

The revenues from the tie-up would come in from the conversion of e-chips to SurfGold points. The points would be billed to tsnshop at the standard conversion rate of $3 for every 1,000 points.

Tsnshop was set up in November 1999 and is projecting a sales turnover of Rs 1.5 crore by March 2001. Established in Singapore in June 1999, SurfGold.com develops and markets Asia's customer loyalty solutions and direct marketing services to online merchants, portals, click and mortar and brick and mortar companies and WAP service providers. SurfGold's products Private Label, Co-branding and Team SurfGold help both online and offline companies to retain their customers. It has designed customised solutions for Hewlett Packard, Novell, Epson, Tom.com etc.

Its focus areas and a source of maximum revenues will be co-branding and per usage ASP fees from clients who use its applications. ``Private label accounts will be a major revenue-earner. Big brands usually don't want to run a parallel programme with another brandname, and want to outsource the entire project, while concentrating on their core competencies. With each such account costing Rs 8 lakh, this is a steep product and will be a major revenue-earner,'' says Mr Reddy.