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Technology Stocks : General Magic

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To: Austin S. who wrote (2883)7/22/1998 6:47:00 PM
From: Darla  Read Replies (1) of 10081
 
Have it your way Austin. Keep thinking GMGC can add 400K users to this service by spiffing coin-operated sales reps. Think that Satchi loaned them their good name knowing they didn't have a budget. Do the math on the commissions and spiffs - to make a lousy $50K, each commission only rep needs to sell 1000+ contracts.

The bottom line is that you can't develop service customers for free, nor can you depend on an army of pimply faced retail reps to do it for $30 spiffs. It costs hundreds of dollars per customer, so you can either reduce the number of subs or increase your marketing budget.

To prove my point, next time you serve a customer try asking "Portico with your burger?" You'll see it's a little harder than you think!
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