To: REW who wrote (34973 ) 9/22/1999 10:38:00 PM From: johngmack Read Replies (2) | Respond to of 44908
Bob, A few thoughts on TSIG's participation in the premium show, and about premium shows and the variety of people that attend them: These types of shows are held in many big US cities throughout the year. If this one was held in Chicago's McCormick Place, it may have been the biggest of the year. What type of people attend? These shows will draw marketing/corporate incentive types, established incentive sales and consultant services, and little mom and pop shops that cater to the local community. This represents about a gazillion people. These people come to this show for two specific reasons. One to get snookered, and two, to find out what's new and exciting in the premium and incentive world. The corporate types want to leave with ideas that will hopefully motivate their organization. The others want to leave with something new that sells and will personally make them lots of money. Pretty straight-forward stuff. Now to TSIG. Probable cost of participating as a vendor between $15-22,000 (depending on how much snookering transpired). What were the specific items needed if the company did a reasonable job of preparing and exhibiting?: acquired reuseable 8x10 foot show booth, graphics, handouts, airfare,hotels, meals for at least two company staff members, hire at least one pretty model (sorry ladies, but this is how it works) to call attention to the booth, a fishbowl for the lead cards that also serves as the bowl for the drawing for the Palm Pilot III giveaway, and finally, let us not forget the cost of the unions who very efficiently setup the booth and electricity. If any is wondering why I went through all this detail, the answer is coming up. Companies generally don't mind spending lot's of money to look good at trade shows. The problem is that most (read MOST) companies do an abysmal job at following up and converting leads into new business. If you don't understand this, PLEASE reread the previous sentence 10 times. Now let's focus on TSIG. Using their number, 1,000 leads were acquired at ($20K best guesstimate cost of show) $20 per lead. Those of you with some business experience will probably find that number very inexpensive. But here is where most companies get into trouble. Leads have both a potential new business value and a time value. If leads are not "cashed in" within 90 days tops, they have as much value as expired puts and calls. Too many times the leads get back to the corporate offices and not followed up on in a timely manner. Let's look at Mr. Gordon's commitment to personally follow up on the leads. I've have never met, spoken to, or emailed Mr. Gordon. But I do know a little bit about human behavior. As the CEO of a fast growing company, he will have neither the time nor inclination to personally follow up on 1,000 leads. He will probably select 6-10 of the biggest opportunities and follow up himself. Anybody starting to see the correlation here? What happens to the other 990 leads that cost the company $19,800. Is one of TSIG's potential new hires a marketing/sales type? Let us hope so. Okay, another episode of "Let's Pretend". Within the next 30-45 days, the right kind of staff is hired and in place. January 1, 2000 - December 15, 2000 1. RG makes and announces and begins a few new large deals. 2. The marketing departing, after careful analysis, recognizes and recommends special programs for direct corporate sales, and second, using established independent premium resellers as TSIG distributors. 3. Maybe establishing retail distributors. (In my opinion, this will bring the copycat leeches storming out of the swamp. (Telephone cards come to mind). 4. A whole bunch of other stuff that nobody has thought of yet. Suzanne, if you read this, I suggest holding off on income projections until specific programs are announced. IMHO they will be, and a lot of stuff we don't even see yet will be contributing revenue toward the end of the fiscal year you have previously discussed. John