From: jkh@story.com
Date: Mon, 21 Nov 94 02:25:11 PST
To: cypherpunks@toad.com
Subject: 900 privacy ad op
Message-ID: <9411210154.D1227sq@bbs>
MIME-Version: 1.0
Content-Type: text/plain



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Cypherpunks: Agree to buy advertising for my 900-number privacy 
information service, and make money from your exclusive territory.

The actual number can't be 1-900-PRIVACY. That'd be too cool. We 
are checking the availability of appropriate names. Maybe SECRETS, 
CONFIDE, or some other 7-letter word will be open.

Some have suggested that a 900 number dispense digital money, but 
critics complained about cost and lack of privacy. 

The call information is recorded by the phone company for billing, 
a separate 900# service bureau processes up to thousands of 
simultaneous calls. They take their cut so value is lost.

The use of blind signatures, to insure privacy, will require that 
each end-user have a trusted computer. Computers will also be 
needed for encrypted remailers to thwart tracing. Despite 
convenient telco billing, the Internet (or equivalent) wins.

I don't see any reason why cypherpunks can't use a 900 number in 
the traditional way -- to sell information via audiotext. We could 
tell people how to fight new threats to their privacy. And make 
money for other projects, like this month's rent, as we do it.

"Dial An Insult" is a 900 number advertised with the slogan "Be 
Amused While Being Abused," illustrated by a silhouetted dominatrix 
with her mouth open. After the national ads are paid, the net 
profit on the 10,000 calls EACH DAY is $8,000. The doctor who runs 
this vital audiotext service has a full time medical practice. 
The service bureau handles an average of 416 calls each hour 
automatically. Yet the chances are slim you've even heard of it, 
unless you're a "be your own boss" seminar junkie or you watch late 
night infomercials.

My own research at the library shows many 900 services beyond the
"Psychic Friends" and "talk to a real girl" lines. Community papers 
give classified date ads away, but to contact someone you have to 
call their 900 number. Big city papers, radio, and TV networks are 
running opinion polls and celebrity messages. That's why they don't
slam them very hard -- they're making money with 'em.

Technical support is available from software companies like 
Button Ware on 900 numbers. The Pope records messages with proceeds 
going to the Catholic Church. The Better Business Bureau runs 900 
lines for reports in some states. Millions call time-sensitive 900 
weather information lines at $0.95/min., despite free sources.

Unfortunately, government agencies are getting smart and using 900 
numbers. A former expense is becoming a new source of funding. Our 
friends at the IRS answered only 21% of calls made last year. An 
enterprising individual runs a tax tip 900 number with the same 
information put out by the IRS to exploit the situation.

The content of my service will be, as stated above, how to defend 
your privacy against new threats. "Cypherpunks write scripts." I'm 
willing to sign joint-venture contracts with authors for parts of 
my nationwide percentage. But there are many restrictions. Send e-
mail to jkh@story.com for the Bozo no-nos. This service will cover 
1-New Threats and Tactics, 2-Lifestyle Risks, 3-Physical Security, 
4-Data Security, and 5-Communications Security. You'll notice I 
avoid the words "financial," "credit," "cash," and "money" -- those 
restrictions I mentioned (MCI is gun shy about past ripoffs). But 
don't worry, I'll sneak that information across somehow.

Lon Weber, an active Arizona Libertarian, e-mail: freedom4@aol.com, 
managed to buy a few 900 numbers, and was looking for ideas. I had 
this idea for a privacy 900 line and was looking for someone to 
fund it. Natural partners, eh? To pay for advertising, I proposed 
the following arrangement, and Lon agreed: Advertisers can request 
exclusive territories, by state. After the telco and service bureau 
take their cut for a call (will send breakdown of charges if you 
are interested), divide the money as follows: 1/3 to Lon, 1/3 to 
the scriptwriters, and 1/3 to the advertiser. Calls made in a state 
will be credited to that advertiser.

The price of this service will be $1.95 per minute, maximum 12 
minutes. A $1.95-per-minute call will have just over $1.00 per 
minute available to split the next month, and a reserve held 
against chargebacks will be released by MCI later.

The industry average call duration is 4 minutes, your mileage may 
vary. The maximum charge allowed by MCI is $5/minute or $25 total. 
One call per hour statewide, times 4 minutes at $1.00 available, 
times 24 hours each day, times 30 days gives a ballpark $2,880. 
Divide by 3 and your cut as an advertiser is $960 for the month. 

Divide the 416 nationwide calls per hour to "Dial An Insult" by 50 
states and you get over 8 calls per hour per state. Instead of 
$960, at that volume, your cut would be $7,680. That wouldn't be a 
bad return for paying $200-$300 to a media broker for statewide 
community newspaper ads. And nobody will stop you from getting more 
ambitious with radio, cable shows, etc.

We don't expect you to send us money, but we must insist on 
evidence that you are really advertising to some minimal standard. 
That's only fair to someone else who may want your territory. The 
FCC and other TLA's require certain disclosures on the advertising.

Lon is looking for other 900 service ideas, too. Feel free to send 
him e-mail at freedom4@aol.com. 

Interested? RSVP:
Kent - jkh@story.com

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