SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : DRIV (DIGITAL RIVER). Get in on internet IPO.
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: RikRichter who wrote (2230)6/21/1999 12:23:00 PM
From: Don P.  Read Replies (1) of 3198
 
Fiberman and all,

There has been much discussion and many frustrations vented on this thread concerning the avalanche of small contracts Digital River has been signing of late. I would like to encourage everyone to consider these small deals from a slightly different perspective.

I would be the first to agree that these small deals do not give investors the instant gratification that has become the norm in the Internet sector. A deal signed with Dell or 3Com for instance would of course make a lot more noise than a deal with T-bob. That being said, deals with small companies do however have some marked benefits:

First is security. Hypothetically which companies customer base would be more secure, one that has only a few very large customers or one that has a very large base of smaller customers. I feel that diversity is the key to Digital River's business model and the key to being diversified is signing contracts with these small companies.

Second is profit margin. I see this as being a factor from two perspectives. 1) Larger companies can demand more of the pie from Digital River just from name recognition alone. 2) Smaller companies are more flexible, have lower overhead and can usually operate on much less profit. This obviously makes the smaller companies even more attractive partners.

Third is scope. As an outsourcer and service provider (not a retailer), Digital River will live and die by the success of its partners. It follows that DR's best interest will be served by having as many deals as can possibly be maintained. That would include both small and large companies. The more deals DR signs, the more revenue sources it has to draw from.

Let's give Mr. Ronning the benefit of the doubt. The big names will come in time. We should be content to know that our management is dedicated to its business plan regardless of the fluctuations of investor sentiment.

Don



Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News