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Microcap & Penny Stocks : TSIS: WHAT IS GOING ON? -- Ignore unavailable to you. Want to Upgrade?

To: Jim Johnson who wrote (6572)	10/17/1999 2:05:00 PM
From: John S. Baker	Read Replies (4) \| Respond to of 6931

"Could someone please explain to me just what this says? What is this channel we are selling?" I'll try. Here my take on it (from a biz-to-biz marketing perspective).... For some time now TSIS has followed a strategy of being a wholesale supplier to its clients, who in turn resell the TSIS services to their customers (the end-users), presumably at a marked-up price. For example, when a company uses AT&T's teleconferencing services for a quarterly update to financial analysts, and when the company subsequently makes a recording of that call available to all who would dial in and listen, the actual recording and replay is done by TSIS. But the company is billed by AT&T. The benefit of this strategy is that it keeps down the cost of sales and marketing efforts because TSIS does not need to have loads of sales reps, regional offices, national advertising programs and the like. A single sale ... say, to AT&T ... can result in a lot of business; in contrast, to close a sale to the same number of companies by contacting them directly would require a lot more sales reps (who cost $$$) and a lot more time and effort. And TSIS has reduced invoicing and credit-risk costs, as they invoice AT&T directly and receive one payment from AT&T. This sales strategy means that TSIS pitches its services primarily to national and international telecommunications companies, rather than to end-user companies. This then determines how and where TSIS does its marketing, advertising (if any), prospecting, and selling. In sales and marketing terms, TSIS's "sales channel" is to the eventual end-user company through TSIS's prime clients, like AT&T". Now moving to the automated survey business, when one of TSIS's telecom clients signs up for the automated survey program, it really means that TSIS and the telecom company have agreed that the company is permitted to pitch its clients to use TSIS's survey capabilities. But merely granting that permission doesn't result in serious revenue to TSIS. In essence, it's just a reseller agreement. And TSIS has discovered that its telecom clients, taken as a whole, are not very skilled at ... or perhaps aren't even comfortable with ... the idea of selling automated surveys to their customers (perhaps because they are being asked to sell an application, rather than a basic telecom service). So TSIS has created a channel partners program which will assist/facilitate its telecom clients to sell automated surveys to their end-user customers. (A more typical model of a "channel partner program" is when a manufacturing company uses independent manufacturers reps or independent distributors to sell its gizmos to other companies (often stores) which sell the gizmos to the general public.) FWIW, I applaud this step by TSIS. My opinion is that, properly done, TSIS's program will show significant results within a few months and really significant results within 2-3 quarters. And the automated surveys are a high-margin product for TSIS. I hope this helps. JSb