Iconomy.com Unveils New Revenue Recognition Model; Patent-pending Method Provides Fairest Recognition of Revenue for Internet Companies.CAMBRIDGE, Mass.--(BUSINESS WIRE)--Oct. 6, 1999-- Iconomy.com, the leading provider of complete integrated Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the shopping solutions, today unveiled a proprietary methodology that enables the company's e-commerce clients to recognize 100 percent of the revenue derived from purchases made at their online stores. Iconomy.com recently filed for a patent on this unique revenue model that offers its clients access to a dramatically enhanced business methodology. Iconomy's accounting treatment has been reviewed by a "Big 5" accounting firm, and it has been deemed consistent with Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). Unlike previous methods for accounting for Internet merchandise sales fulfilled ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. by third parties, this new methodology enables Internet companies to realize the full amount of revenue on products sold via the Internet, a concept no other company has implemented to date. As the only provider to offer this competitive business advantage, Iconomy's revenue recognition model provides organizations with the fairest way to recognize revenue, thus helping to demonstrate to the industry and financial community the full value of the commerce flowing through their Internet sites. Under this model, Iconomy not only shares selected risks and responsibilities with the host site, but also allows the host site to serve as the merchant of record, since the store is operated on its site and under its name. The apportionment The process by which legislative seats are distributed among units entitled to representation; determination of the number of representatives that a state, county, or other subdivision may send to a legislative body. The U.S. of risks and responsibilities between Iconomy and the host site allows the host site to realize "top-line" revenue, rather than simply be paid commissions. While the client is responsible for driving all site traffic and creating the merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. opportunities, Iconomy serves as the wholesaler of goods as well as the provider of fulfillment ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. and operational services under this new revenue recognition model. "Internet companies selling products under affiliate programs must generally deal with some very significant restrictions on the benefits they receive," said Dave Treiger, Iconomy.com's chief financial officer. "Participating sites have no opportunity to collect commissions on their customers' repeat purchases made directly from the affiliate. In addition, under both affiliate programs and other third-party e-commerce programs, the company owning the host site is unable to show the financial community the full dollar volume of commerce flowing through their sites, since they can only recognize the much smaller amount of commissions they receive on product sales. At a minimum, we believe that Internet companies should be able to recognize the full revenue from online sales, since they are bringing in customers, promoting the products, and motivating customers to make online purchases. Iconomy's system more fairly reflects the true value of our clients' online sales." About Iconomy.com Headquartered in Cambridge, Mass., Iconomy.com (www.Iconomy.com) is the leading provider of complete, integrated Internet shopping solutions through an extensive vendor network and modular technology. Iconomy seamlessly integrates shopping environments into their clients' web site design to increase "site stickiness See sticky. ," a distinct advantage over banner advertising Banner Advertising A common form of advertising on the internet. The banner is an advertisement of 460x68 pixels, usually placed at the top of the page Notes: For an example, just look at the top of a page on almost any popular web site. and affiliate programs in which users leave the original host site. The Company has established relationships with more than 150 wholesale distributors, gained access to more than 3,500,000 products for the buying public, and developed shopping environments for major sites such as GeoCities, Embark em·bark v. em·barked, em·bark·ing, em·barks v.tr. 1. To cause to board a vessel or aircraft: stopped to embark passengers. 2. .com, iGive and E-greetings. |
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