ConnectSource Inc. (a C corporation that was formed and based in July 2017 Wyoming) provides performance-based advertising and marketing services using a proprietary Closed Loop Payment System through its three Power of 10 Savings (P.O.T.S.) programs: Card Accounts, Referral Network and Merchant Network.
Power of 10 Savings (P.O.T.S.) program Overview
What is it?
It is made up of three (3) parts:
- P.O.T.S. Card Account: A prepaid online savings account with NO FEES that allows consumers to deposit as little as $10 into their account and:
- Earn 10% back when they Shop
- Earn 10% back when they Save
- Earn 10% back when they Share the opportunity with friends and family
- Plus, they can cash out their balances (Prepaid balance, Shopping Credits, Savings Credits, Investment Returns Credits and Referral Credits) at any time* (allow 90 days to process refunds requests).
- P.O.T.S. Merchant Network:
- A Closed Loop Payment System (CLPS) where P.O.T.S. Card members can purchase products and services using their prepaid online account and receive 10% back in Shopping Credits.
- Merchants enter into Advertising and Marketing Services Agreements with ConnectSource Inc. via Advertising and Marketing Consultants (Independent Business Owners) for ConnectSource Inc. to provide performance-based advertising and marketing services via it membership base of P.O.T.S. Card members.
- Merchants pay ConnectSource Inc. an advertising and marketing fee of at least 15% of the purchase amount when a P.O.T.S. Card member makes a purchase using their prepaid online account.
- The 15% fee payment is allocated as follows:
- 10% of the purchase amount to the card member in the form of Shopping Credits.
- 1.5% of the purchase amount to the Referral Network in the form of Referral Credits (10% of the Shopping Credits).
- 1% of the purchase amount to the Advertising and Marketing Sales Consultants (P.O.T.S. Service Providers).
- The remaining amount of at least 2.5% goes to ConnectSource Inc. to cover operational costs.
- P.O.T.S. Referral Network: P.O.T.S. card members can refer friends and family and receive 10% of whatever credits the people they refer earn.
- There is no limit to how large a card member’s referral network can become.
- ConnectSource’s maximum cost for Referral Credits no matter how many people join the Referral Network is 1.12% of the purchase amount of any purchase made by a P.O.T.S. card member.
How does ConnectSource Inc. make money?
ConnectSource Inc. makes money by charging members of its P.O.T.S. Merchant Network at least a 15% advertising and marketing fee. After issuing Shopping Credits (10%), Referral Credits (1.5%) and Advertising and Marketing Sales Commissions (1%), ConnectSource Inc. retains a gross margin of 2.5% to go towards operational costs, interest, taxes and profit. ConnectSource Inc.’s business goal is for operating net income (before interest and taxes) to be at least 1% of the total gross sales of the P.O.T.S. Merchant Network.
Another source of income for ConnectSource Inc. will come from the borrowing against of prepaid deposits to invest in Help Keep My Money LLC’s investment models. The business goal is to generate an annual net cash on cash return of at least 10% after taking into account interest costs (Savings Credits equal to interest costs of 10% per year and Line of Credit interest expenses of no more than 10% per year).
What does ConnectSource Inc. do with its profits?
ConnectSource Inc. is a high growth startup company, whose number one priority is to grow as quickly as possible (while managing and shifting risk) to become a source of quarterly cash payments for its dividend paying shareholders (Preferred Stock Shareholders). Below are the immediate priorities for its profits:
- Be able to return all prepaid deposits back to P.O.T.S. Card members within 90 days of all Card members requesting a cash refund.
- Reinvest all profits until the following milestones are achieved:
- Total P.O.T.S. Card accounts is greater than 8,000,000.
- Monthly Merchant Sales Volume is greater than $8,000,000/month.
- Total Prepaid Balances are greater than $80,000,000.
- Monthly Operating Income Ratio is greater than 10% for three consecutive months.
- Operating Income/Merchant Sales Volume is greater than 1% for three consecutive months.
- Total Owner’s Equity is greater than $2,000,000 and no less than 2.5% of Total Assets.
- Total Cash Position is no less than $3,000,000.
- The business has been in operations for at least 12 months.
- Once all of the milestones have been achieved, then minimum metrics will be established and as long as the business exceeds those minimum metrics, then a quarter dividend shall be declared that pays out the excess earnings that exceed the amount of cash required to meet the minimum metrics.
Click here to view the report “Why Americans Use Prepaid Cards”.