A Lower Cost Way to Develop User Base

Andrea Wood | June 15, 2006, 10:36 AM

In an effort to attract cost-conscious and techno-savvy student set, Vonage Canada is offering a $1000 scholarship to five lucky Canadians. But wait – there’s a catch! The kids must sign up to Vonage to be entered into the contest. As further incentive, the company is offering a complimentary cordless phone and one month of free service. Not unlike many other contests aimed at developing a new network of potential users, the chances of winning increase for those students that supply the email addresses of five friends. So, Vonage is spending $5000 on scholarships, and some more on on advertising and complimentary service. Pretty sweet deal considering just how many names and email addresses the company can target after the promotion is complete. While the ideas isn’t new, it really preys on the student desire to save money. It almost seems wrong. But then again, so do the uber-expensive handbags I see many McGill undergrads carrying these days.