Simple Business Model for
"Digital Guard"

Digital Guard provides a secure, visual home inventory for insurance and estate purposes for $99. Who benefits? The insurance companies do. So DG should ask the insurance companies to: a) promote the service to their agents and brokers, b) offer $20 off coupons for purchase of the DG service (50% paid by DG and 50% paid by the insurance company) to their agents' and brokers' clients who purchase DG services (note that the insurance companies only pay (50%) for coupons that are actually used), c) give their clients who use the DG service a one time $99 off either their premiums or, even better, $99 off their first deductible claim (better because unless they make a claim, they don't get the $99.)

So DG is really in the business of home visits or visits to businesses to take a whole bunch of digital photos and encrypt these on CDs, right?
Wrong Assumption!

Is this a scalable business?

Nope.

Well, how about comingwith an e-strategy. That is what everyone else is doing. So how about DG lets everyone download their software to their PCs and do their own digital photos using the DG format. That way DG becomes the international standard, right. It'll be like Napster- everyone will use it. Great, right?

Wrong. This business model doesn't make any money. It isn't scalabel, not really anyway. So what if DG is an international standard if DG loses money. It won't be around long and will join thousands of dot bombs in the waste basket of history.

So, what business is DG really in? try out this model- DG has agents or franchises in cities all over the place. DG agents go to the homes or businesses of its clients and customers because most people are too lazy or too busy to make a complete inventory themselves.

Now things get more interesting- how about DG offers claims processing? So when your car gets stolen or your house burns down, you go to the DG web site and you e-file your claim with your insurance company.

Guess what? DG has just harnessed one of the huge new powers of the web- they have successfully reversed out the work for claims filing to the customer- huge numbers of clerks are need to do this now.

Wait a second! This is a free service to DG clients; how does DG make any money?

Because now the insurance industry is willing to pay DG big dollars because their costs for claims processing are going to drop by one or two orders of magnitude.

DG is an internet insurance utility providing accurate and timely claims processing for the insurance industry at a fraction of the cost of what the industry currently pays. Faster more, accurate claims- better for the clients and for the industry too.

Now the free software downloads for those (relatively few) who are do-it-yourselfers and the army of DG agents makes sense- they are a feeder system for the DG claims processing utility, which is highly scalable and will create value beyond the hourly rate of a J.O.B. and will make money for shareholders while they do other things like, say, lie on a beach somewhere.

Simple Business Model for "Digital Guard"

Wrong. This business model doesn't make any money. It isn't scalabel, not really anyway. So what if DG is an international standard if DG loses money. It won't be around long and will join thousands of dot bombs in the waste basket of history.

Simple Business Model for
"Digital Guard"