Smart USA hires Internet Brands as the exclusive provider of smart USA's internet marketing and lead referral services for them and their dealer network. Zap and the "gray market" Smart car group back in 2004 had charged clients $1,000 to reserve a Smart why is smart USA was only charging $99.00?…Now we know

 Diana T. Kurylko of Automotive News reports --"Paying the fee -- the maximum permitted without violating state laws -- won't buy a place in line for the ForTwo. But it will give Smart a better idea of the specification packages and colors that potential buyers want.

A post by Chris Haak on carsandtech.blogspot.com says what many are thinking "Although the reservation fee is refundable at any time, and the company claims that the fee and reservation system are there to "gauge interest" in the car, it sounds to me that it's arrogant at best, and a scam at worst."

He continues "How does committing $99 - in what is not even really a commitment, because you can get your money back, and they don't have to sell you a car if they don't have enough - really gauging interest?

Plus, the "deposit" is less than 1% of the $12,000 base price of a Smart. So basically, Smart expects buyers to pay $99 for the privilege of being contacted if a Smart car is available for purchase.

We're not sure about all his comments? Perhaps by compelling the buyer to pay for the marketing and brand consciousness for the cars will keep the Smart car cost down for the end user?

I agree that by now they should have a good gauge of the cars marketing facts!However, Jerry Marks of Seeking Alpha (2006) had some interesting views.

He said "If all reservations are filled, it works out to 333 to 444 Smart vehicles per dealership." and says "Now I don't know what Penske Automotive Group will make on the sale of each Smart vehicle (through the distribution agreement).

We can all try to guess ($200/$300 per unit?) but we just don't know." "So if I put these numbers on a pre-tax basis, we're talking about $3.0 million to $6.0 million bucks in expenses associated with Smart."

Mr. Marks continues "They may have more expenses when they actually go live (distributing to the 74 dealers), they may have less. We don't know.

But based on the expenses we know right now (the $3.0 to $6.0 million), what it tells me is that at 20,000 Smart unit sales; Penske needs to make $150 to $300 per vehicle to break even."

But here's the fly on the wedding cake - The Smart Car reservation process which started in April of 2007 and continues, now has 44,000 reservations.

Smart USA hired Internet Brands as the exclusive provider of smart USA's internet marketing and lead referral services for them and their dealer network.

Many Americans who have placed their deposit on a Smart car do not know that Internet Brands, a provider of online automotive research and marketing services, is responsible for providing all Internet leads(with and without advance deposits ) from consumers.

All leads generated from smart USA's website and the 800 number are maintained by Internet Brands and they will sell all smart Car leads to smart USA during their (36 month) agreement.

So, all the calls buyers are making, are not being monitored by smart USA' but to a Internet Brand customer service person.

Other online marketing services that Internet Brands will be in charge of include:

• Handle all customer care center service
• Manage all aspects of the $99 reservation program on behalf of smart USA (Advance reservation program)
• Be the exclusive telephone resource for Smart Car information
• Create & administer a customer satisfaction survey program for smart USA
• Distribute periodic e-mail campaigns and monthly online newsletters

Also, manage all in-bound consumer calls to the 1-800-SMART-USA Number and e-mail inquiries through a customer service e-mail address displayed on the Smart USA website and other duties.

When the sales network has been established, dealers will be given lots of leads," said Mr. Kettenbeil of smart USA.

The agreement between Internet Brands and smart USA states Internet Brands will supply no less than 36,000 leads (which is mission accomplished) and smart USA has agreed it will purchase all smart Car leads generated by Internet Brands up to 100,000 leads per year.

Plus, the agreement between Internet Brand and smart USA Distributor LLC does not prohibit Smart Car Dealers from accepting leads from offline sources at their dealerships, including leads generated from their dealer websites.

We believe Smart dealers will generate a very sizeable number of in house leads and once again I say that a good customer who buys top end and expensive cars for one of the authorized Smart dealers might just have the clot to get a Smart through his connections at the dealer?

This tells us if they (smart USA) are willing to purchase up to 100,000 leads per year for 3 years and have known they would only be alotted 20,000 units the first year there is more to this campaign than finding out what colors the potential buyer wants! All this could and will play a part in the cars future. With the possibility smart USA Distributor LLC, will have over 100,000 leads very soon.

So, don't be shocked if many hopeful smarties are driving something other than a Smart before they get to the front of any line.

The question is how many Americans will get a smart car and when?

One reader wrote "I'm fairly sure of one thing…A shiny new Smart Cabriole around $17,000...the agreement between Internet Brands and Smart USA big bucks...the marketing strategy and confusion factors priceless!"

This is a summary of the agreement between smartUSA and Internet Brands regarding Internet Brands marketing and lead generation for Smart USA.