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

To: jmt who wrote (3141)	7/16/1998 9:01:00 AM
From: John S. Baker	Read Replies (1) \| Respond to of 6931

I was told by Don Cameron, admittedly some time back now, that each deal was negotiated on its own merits to fit the needs of the client company ... he's big on this flexible-offer thing ... but that generally there is a monthly basic fee plus a fee based on usage. My interpretation is that the monthly basic fee is sufficient to cover the sunk cost of pursuing and establishing the account plus any specialized programming, and to ensure the client company is serious. As pointed out by someone else, the fact that most of the revenues come from the variable costs will make it quite difficult to generate realistic predictions of future revenue immediately upon signing a contract, because nobody can predict how much usage it will get. JSb.