Buyandsell.net, the Internet service provider and second-hand trading site, is offering its customers free shares in the company in a move aimed at expanding its customer base.
Up to 25,000 existing and new customers have been invited to register with buyandsell.net and become eligible for 5 per cent of the company's shares in accordance with e-points they earn each time they use the site's services.
In all, 19 million free shares will be available to 24,995 participants. Each month the top 100 epoints earners will be entered in a draw, and at the end of each quarter one customer will be chosen to receive 750,000 free shares. After five quarters one of the previous winners will double that amount to 1.5 million. Because buyandsell.net remains a private company the shares will be worthless until the company is sold, or seeks a partial or full stock market flotation.
According to Ms Mary Mangan, buyandsell.net managing director, the company will pursue one of these strategies within the next five years, but not in the short term. Buyandsell.net currently employs six people.
To avail of the share offer, participants need to read the prospectus and register at www.buyandsell.net. Eligible applicants must use personal, not commercial, e-mail accounts.
By downloading buyandsell.net software from the Net they will each receive an e-mail address, and accumulate one share every time they earn 50 epoints for using buyandsell.net services.
Ms Mangan says buyandsell.net is hoping to capture 30 per cent of the Internet service provider market within 12 months. With current cash reserves of £1 million (#1.27 million), the company plans to extend the business model to two European countries this year. It plans to raise £600,000 this year to fund its sales and marketing campaign into new regions.
Buyandsell.net is 75 per cent owned by Buy and Sell Ltd. Telecommunications company Stentor holds a 20 per cent stake, and has incorporated its call card services into the buyandsell service with the launch of the Shout! call card earlier this year. Co-operation Retirement Benefit Fund holds a 5 per cent.
