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Sanjay's Blog


Tea Connexions News: Issue #3 - June 2003

There is one thing stronger than all the armies in the world, and that is an Idea whose time has come.
- Victor Hugo -

Great works are performed not by strength but by perseverance.
- Samuel Johnson -

Enthusiasm…. Nothing great was ever achieved without it.
- Emerson -

If you can constantly focus on the things that you want and close your mind tight against the things you DON'T want lo' a hopeful future will open up to you.
- Napoleon Hill -

It is not because things are difficult that we do not dare; it is because we do not dare that they are difficult.
- Seneca -

"To accomplish great things we must not only act but also dream not only plan, but also believe".
- Anatole France -


Inside:

  1. Introduction
  2. Vision
  3. Education
  4. Guarantee
  5. Growth Management
  6. Payment Acceptance
  7. Member News
  1. Introduction

Six months has past since the last installment of Tea Connexions News. Much has happened. Tea Connexions is growing at an impressive rate. Presently, we are 12 months ahead of schedule and will be moving into our new office and warehouse facility on June 12, 2003. This is a very exciting move for us and we are very hopeful for the future.

Inside this issue of Tea Connexions News, you will learn more about my long term vision for the company. To date, I have been a bit hesitant to reveal all my plans, but now that the buying group is established, I believe that it is prudent to let our members and prospective members know what I have planned for the future.

Other sections in this newsletter include:

Education provides you with access to articles that we have produced to further educate you about business, and the merits of the tea business in particular.
Money Back Guarantee explains why less than 1% of new members have used it.
Growth Management outlines Tea Connexions's growth, including important changes to the pricing structure of our memberships beginning July 1, 2003.
Payment Acceptance highlights the new payment system that Tea Connexions has implemented.
• Finally, Member News contains specific information designed for our existing members.

Drink Tea and Prosper!

Yours sincerely,

Sanjay Gupta
Sanjay Gupta
President/CEO
Tea Connexions
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  2. VISION

There is one thing stronger than all the armies in the world, and that is an Idea whose time has come.
- Victor Hugo -

Many members have asked me what is my vision for Tea Connexions. Simply put, where do I think Tea Connexions will be in 5, 10, or 20 years? My vision and goals for this company are simple:

TO BECOME THE BEST AND MOST VALUE ADDED SPECIALTY TEA DISTRIBUTOR IN THE WORLD!

In the second issue of Tea Connexions News, I outlined the humble beginnings that Tea Connexions had.

Tea Connexions started as an Idea. My idea in 1998 was to develop world wide distribution of "Gourmet Teas Beautifully Packaged." In 1998, I did not know how this idea could be made a reality, but I did believe in this dream. As Anatole France stated: "To accomplish great things we must not only act but also dream not only plan, but also believe."

Lofty dreams, planning, and most importantly, the belief that this vision could be accomplished motivated me during the period between 1998 and the pre-launch of Tea Connexions in August, 2001. I must admit, this was not an easy period. My wife, Suruchi and I, endured much personal and financial sacrifice. Rather than starting our family, we decided to put this off to "Give Birth To Tea Connexions."

During this period, I was also a fond and avid listener of Anthony Robbins. I encourage everyone to listen to his tapes. They work. One of the most important lessons learned from his tapes: ASK EMPOWERING QUESTIONS.

I asked myself many questions, but the two critical questions I asked included the following:

How can Tea Connexions become the best and most value added specialty tea distributor in the world?

How can I help other entrepreneurs with similar dreams and goals such as mine become a part of my vision and benefit from it?

The answer - "Opportunity is Brewing"

STRENGTH IN NUMBERS

The "Opportunity is Brewing" program is based upon the concept of building a powerful tea buying group. The whole purpose of the buying group is to increase group purchasing power so that our individual members are able to purchase the products at below wholesale prices. The buying group is built by offering our products through existing members only. Tea Connexions does not wholesale or retail the products. Rather, our purpose is to refer customers to our members. By joining, our members gain many privileges and benefits which are documented in great detail.

Now that Tea Connexions is maturing, here are some other goals that Tea Connexions plans to achieve.

VERTICAL INTEGRATION

Tea Connexions will make strategic investments into ownership of tea gardens that supply our members exclusively. At present, several estates are supplying us exclusively. But through investment ownership, this will further solidify our ability to manage quality control and ensure steady supply to our members.

Investment in country specific tea gardens will also correspond with the setting up of Purchasing Offices in each country that we begin importing from. At present, we have an office set up in India and hope to expand into China and other tea growing regions in the near future. In fact, our next Purchasing Office we are looking at setting up will occur in China which will correspond with the hiring of a TEAm Member with a knowledge of the Chinese language.

STRATEGIC RELATIONSHIPS WITH OTHER TEA SUPPLIERS

Membership in the buying group does not limit our members from purchasing teas from other suppliers. Through increased distribution, other tea suppliers will want to tap into this distribution on a permanent basis. With this in mind, Tea Connexions plans to negotiate special pricing with other suppliers who wish to supply our individual members. At present, we are initiating talks with many tea wholesaling companies, in an effort to increase the range of products to our members dramatically.

CONSOLIDATE DISTRIBUTION

We plan to offer our TOP DISTRIBUTORS an opportunity to become Master Distributors, meaning they will control a territory and benefit from all sales in their territory. The offering of Master Distributorships will enable Tea Connexions to rationalize and consolidate distribution in each Master Distributors' territory, meaning the members in that area will be able to pull from a local warehouse and fulfillment facility.

Other programs we are considering developing for our Master Distributors include the following:

- Franchise Tea House Concept. Master Distributors will benefit because they will be the exclusive supplier to the franchises.
- An Elite tea branding program designed specifically for all Master Distributors to benefit from.

WORLDWIDE DISTRIBUTION

Presently, Tea Connexions has strong distribution in the United States and Canada, markets which we can easily manage. Our office in India is working with prospects from Asia and Africa. Recently, Tea Connexions began working with a Distributor in the United Kingdom, who will be developing the European market for us. We would also like to form a strategic distribution alliance with a Distributor in Latin America to deal with these interests as well.

NEW GOURMET PRODUCTS

As the buying group increases, Tea Connexions has been approached by manufacturers of other gourmet foods, such as chocolate. To increase the market reach of our Members, we are studying the possibility of adding other gourmet product lines that would compliment a focus on specialty teas.

STRATEGIC ALLIANCES

Recently, Tea Connexions was approached by a company that has a very interesting concept supported by a licensed product line. Presently, discussions are under way to see how our Distribution model can support the launch of this product line, supported by an extensive online and television presence.

NEW BUSINESS OPPORTUNITIES

It is very interesting to note, that because of the growth of the buying group, Tea Connexions has been approached and is considering other non-tea related business opportunities that will further revenue streams for our members. For instance, since many of our Distributor members have their own websites, one project under consideration is a web hosting program that would give our members the opportunity to sell e-commerce services through their own brand specific website.

MEMBER OWNERSHIP

Many members have been asking how they can invest and own equity in Tea Connexions. Taking the company public is something that we are considering and would be beneficial to our members. Our hope is that shares can be offered to existing Members prior to the public offering, through a member only stock offering.

In the meantime, and through the encouragement of some of our existing members, last year we launched an Advertising Co-op that enables our Distributor members to benefit from the long term growth of the company. Revenue is generated for Ad Co-Op participants by paying back 10% of membership fees and 2.5% of tea re-orders. In 2003, Tea Connexions is considering offering Distributor Members Only, an opportunity to participate in a 24 month advertising campaign scheduled to begin January 1, 2004. Details of this program will be posted in the online training, July, 2003, at which time, units in the Advertising Co-Op will be offered for sale.
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  3. EDUCATION

Over the past two years, we have received many questions and requests for specific information from prospective members and existing members. To ensure that you can access this information, and print it from your computer, we have stored the articles on our server. To gain access to the articles, all you have to do is click on the link and send an e-mail to the e-mail address specified, and you will receive an immediate response.

What are some of the tax advantages of starting a business?

What are the most common reasons, people decide to start a business?

Who is Tea Connexions?

What are some of the key market statistics about tea?

What are some of the key health statistics about tea?

What is so special about Tea Connexions teas?

How will distributing tea enable me to achieve financial independence?

How do I market tea?

Why do I need a website?

What is private labeling?

What are the top five reasons I should consider investing in the Tea Connexions business opportunity?

I still have questions, what should I do?

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  4. GUARANTEE

When research was being conducted on the launch of a business opportunity, the Federal Trade Commission in the United States informed me that the maximum Money Back Guarantee period that must be offered to new members was 10 days. Frankly, I do not think this is enough time to evaluate any opportunity. For this reason, and because we have such a strong belief in the value of this program, Tea Connexions offers all new members 30 full days to evaluate the program.

Our opportunity is so credible and of so much value that to date less than 1% of the members that joined have ever took advantage of our Money Back Guarantee.

Several reasons explain this.

First, the online training. Training, I think is the key. Think of Tea Connexions as your introduction to the tea business. Our online training, not only provides you with a 30 day quick start plan, but detailed business and marketing guidance. Most importantly, the online training provides extensive Tea Education to ensure that you have all the knowledge to properly market your business to consumers.

Second, tangible goods for investment. All new members receive tangible products and marketing materials to promote their tea business. Providing start up inventory and marketing materials enables our members to quickly recoup their investment. To date, the majority of our members have re-ordered product and taken advantage of the below wholesale costs. This means the start up products we provide with the initial membership fee are being sold and subsequent re-orders placed.

Third, e-commerce solution. It is a fact, if you plan to have a business in today's world, you better have an online presence. Tea Connexions makes it easy for new members to obtain the online presence by offering a turn-key e-commerce solution.

Finally, service. Our goal is to exceed the expectations of our members through outstanding service. To date, the feedback we have received has been very positive. Tea Connexions tries to respond to all phone and e-mail questions within 2 business days, if not the same day the inquiry comes in.
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  5. GROWTH MANAGEMENT

Since launching the program, August, 2001, Tea Connexions has grown tremendously. In fact, we have grown so fast that we are moving into our new location one full year ahead of schedule.

Effective June 16, 2003 Tea Connexions will be in our new location. Our new location is three times the size of our present one and has a warehousing capacity for about 100,000 pieces. Presently, we have 30,000 pieces, including 18,000 tea cartons (450,000 tea bags) coming by sea, which are scheduled to arrive this summer. The upstairs level in the warehouse will enable us to accommodate the storage needs of our Private Label customers. The expanded office space will empower Tea Connexions to add more staff to accommodate the growing needs of our members.

To effectively manage this increased growth, as of July 1, 2003, the value of a membership in the Buying Group will increase with the following changes:

DISTRIBUTOR MEMBERSHIP

Presently, the cost of a Distributor Membership is US$999. Effective July 1, 2003, the cost of a Distributor Membership will increase to US$1794. New Distributor Members will receive start up inventory, marketing materials, online training, priority on referrals, an opportunity to participate in the Ad Co-Op, promotion through our contest site, and a US$250 gift certificate good towards their first Private Label Order.

E-COMMERCE SET-UP

Presently, the cost of E-Commerce Set-Up is US$500. Effective July 1, 2003, the E-Commerce Set-Up will increase to US$995. Included with this fee will be 12 months of hosting, valued at US$420 and a link on leaftea.com valued at US$500 if sold separately from this E-Commerce package.

RE-SELLER MEMBERSHIP

Presently, the cost of a Re-Seller Membership is US$149. Effective July 1, 2003, the cost of a Re-Seller Membership will increase to US$409. New Re-Seller Members will receive start up inventory, marketing materials, online training and a US$100 gift certificate good towards their first Private Label Order.
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  6. PAYMENT ACCEPTANCE

Effective immediately, Tea Connexions now accepts Pay Pal. This means that existing members and new members can send payments to Tea Connexions via Pay Pal. Adding Pay Pal enables new and existing customers to deposit funds to their Pay Pal accounts using AMEX, VISA, DINERS, MC, and their Checking accounts. We believe Pay Pal to be a reputable payment acceptance system. Click here to learn more about Pay Pal .

Payments for services can now be made through Pay Pal, VISA, MC, International Money Order, and Wire Transfer.
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  7. MEMBER NEWS

Several announcements for existing members:

NEW MEMBERS STORE

In the first week of June, Tea Connexions will be launching our new Members store. For the past couple of months we have been testing the use of an online ordering system. Members will be able to gain access to the new store with their existing username and password. Check the online training between June 2nd and June 6th for further details and the launch of the store so that you can view our new ordering system.

SHIPPING POLICY

After two years of shipments to the United States, Tea Connexions has determined a formula that will empower our US customers to determine the cost of their shipments. Our new US shipping policy will be posted in the Members store that will be launched between June 2nd and June 6th.

Tea Connexions is also actively seeking other shipping alternatives to cut some of the fulfillment costs to our members. Further details will follow in a Members Only e-mail.

INCREASED EFFICIENCIES

With the implementation of our new ordering system, Tea Connexions hopes to reduce the time required to process, invoice, and ship out an order. This new ordering system will also enable us to focus time and energy on serving you better.

MARKETING TOOLS

- In response to rising demand, Tea Connexions is working on the design of a new fund raising tool that is scheduled for launch this summer.
- New online marketing tools will be offered to our members including an e-mail catalog and a .pdf catalog, both of which can be customized.
- Also, after much study and research, we decided to create a brochure style catalog presentation with sell sheets that can be put inside. This empowers our members to market any products they choose.

PRODUCT DEVELOPMENT

- 30,000 products, including 18,000 tea cartons will be arriving this summer.
- Later this year, Tea Connexions plans to launch our bulk tea, 5 gram, and 50 gram tea products.
- Tea Connexions is also investigating the possibility of introducing some limited edition products for Christmas season only.

Product development is moving ahead at a much faster pace now that we have our office set up in India.

PAYMENTS

Effective immediately, all payments for Ad Co-Op and Online Credit Card order processing will be made through Pay Pal. Some Members may have noticed a delay in payments. Payment delays from previous pay periods will be initiated in July through the use of the Pay Pal payment sending feature.

MONTHLY HOSTING

Effective immediately, all monthly hosting clients, must make their hosting payments with Pay Pal. We are implementing the use of the Pay Pal system to ensure automatic monthly billing of all hosting payments. Members that wish to save charges on hosting can opt for our 12 months for the price of 9 feature, which accounts for a saving of US$105.

MARKETING MATERIALS

Effective July 15, 2003, the following price changes will be in effect for marketing materials:

MM002 (Gourmet teas….beautifully packaged) will now cost US$0.40 per unit.

MM003 (Tea…the beverage of choice) will now cost US$0.25 per unit.

PRIVATE LABEL AIR FREIGHT SURCHARGE

Effective July 15, 2003, all rush Private Label orders that must be imported through UPS Air Freight will be subject to a surcharge of 8.5%.

This surcharge does not apply to orders that can be brought in by sea so we encourage Members that are planning to order Private Label stock to place their order soon to allow for sea delivery times which is about 6 weeks.
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Remember:

Gourmet Tea + Beautiful Packaging + Superior Service = Exceptional Value!