MyPoints.com Creates Loyalty Network for Small Sites

Loyalty marketer MyPoints.com Tuesday took the wraps off a new rewards network, which allows smaller Web sites to use “points” to keep customers, but doesn’t saddle them with the costs of a custom system.

Web sites that join the “Instant Loyalty” network — SkyDesk, MyFlowerShop.com, and Games2Learn are among the first to do so — are able to install rewards systems on their sites for under $30,000 in around two weeks. Consumers who sign up at these sites can then earn points on any site in the network, but they must go back to the site where they signed up, to check their account balance or redeem the points.

“A large-scale private label loyalty program is simply not right for most leading-edge Web businesses, who cannot spend tens of thousands of dollars and wait months and months to implement a loyalty program,” said Steve Markowitz, chairman and chief executive officer of MyPoints.com (MYPT).

“The e-commerce environment is simply too competitive for that.”

MyPoints.com developed the program after seeing companies blanch at the price of its private label service — $1 million. It hopes smaller start-ups will begin with the entry-level “Instant Loyalty” service, then upgrade as they grow.

The company’s competitor, Netcentives (NCNT), does something similar with its ClickRewards program, which gives users frequent flier miles.