Mozeo looks to capitalize on text-message craze

* Key players: Nicholas Fruscello and Greg Lisnyczyj, cofounders

* What does your company do? Mozeo, LLC provides its customers with a mobile-communications engine to distribute local and national savings, discounts, commercial and noncommercial alerts, and promotions.

* How do you do

that? Mozeo's users register on the company's Web site for free. They then have access to the firm's network of advertisers, who offer special promotions, discounts, and coupons for Mozeo members. Users can elect to be alerted to new promotions or information via text messages to their cellular phone, or they can simply search the Mozeo site for information and then send coupons to their devices. The company has also been adding other features, including weather alerts and an Internet search engine.

* What need does this service fill? "People don't carry laptops around," Fruscello says. "You barley get students from 18 to 25 who carry anything close to a BlackBerry. Those are people looking for a small, concise, little thing that they can put in their pocket, but it's always with them all the time." Mozeo attempts to integrate the capabilities and advantages of larger, mobile-communications devices with smaller cell phones that, while less advanced, are much more widespread, Fruscello says. "We said 'Why don't we design something that can add value to a [cell phone] people have with them all the time anyway?' "

* How do you generate your revenue? Companies pay Mozeo to be part of its network and have access to its community of users. The firm, launched in August, currently has 250 users and 15 businesses, which are concentrated in the Syracuse University area and Armory Square. For businesses, Mozeo offers an entirely new method of marketing. "This lets you market directly into the hands of [consumers]," Fruscello says. "It's a new form of marketing. It's not putting up a billboard where you're going to have 100 people drive by and get maybe a 1-percent to 5-percent return. This goes directly into the hands of someone. They're going to read it directly and your chances of a return are much greater because of that." For example, if a local pizza shop knows its slow times, it can run a promotion for those specific hours and notify Mozeo members directly, Fruscello says. The company, however, has strict policies against spamming and members only receive the messages they want. If they don't want any messages sent to their phone, then they don't get any, he explains. Eventually, Fruscello says members will be able to search businesses from their phone and learn whether there are any deals or promotions available for Mozeo members instantly. "Let's say they're in a restaurant and they don't know if it's part of Mozeo," he says. "They can text the name of the restaurant to Mozeo, and it will let them know whether there's a coupon there. Maybe they'll get a 5-percent coupon or something."

* How do you market the company? Fruscello says he and his partner, Greg Lisnyczyj, are both from Syracuse and so that was a logical place to launch the company. They focused on the SU campus because of research they did before launching that found people in the 18-to-31 age group to be the prime users of text messaging. They plan to start marketing Mozeo on other campuses in New York, Pennsylvania, and Ohio within the next year. As the network expands, Fruscello says the company will likely explore broader marketing tactics such as online advertising. They also want to make large, national companies, like Starbucks or Netflix, part of the Mozeo network. Fruscello says they are in discussions with some larger companies now, but could not comment on details. "Once you get those enterprise-level companies, it really becomes something you can use anywhere,' he says. "if Starbucks is running a promotion on Mozeo, you can use that in LA or Memphis or Syracuse." One of the strengths of the company, however, will continue to be its ability to allow small, local businesses to reach users in their specific geographic areas, Fruscello says. The technology also works across multiple carriers, including Verizon, Cingular, Nextel, Sprint, and T-Mobile.

* What is the background of the company? Fruscello and Lisnyczyj were friends prior to starting the business and came up with the concept during conversations, Fruscello says. Fruscello has a degree in industrial engineering from the University of Buffalo and Lisnyczyj has a master's degree in business administration and a bachelor's degree in mechanical engineering from Syracuse University. They currently run the business out of their homes.

* What is the company's growth potential? Fruscello says the company has the potential to be generating $15 million or $20 million in revenue within five years and possibly even more. He is projecting sales of at least $100,000 for the company's first year. Eventually, they may look at expanding internationally. They have already secured rights to the Mozeo name in the United Kingdom. Currently, Fruscello and Lisnyczyj are the only two employees, but the company is looking to hire another three people.

Mozeo, LLC

4465 E. Genesee St.

PMB # 164

DeWitt, N.Y. 13214

Phone: (315) 278-1654

Web site: www.mozeo.com

E-Mail: info@mozeo.com

Year founded: 2005

Employees: 2

Annual sales: Projecting $100,000 in first year