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Technology Stocks : General Magic -- Ignore unavailable to you. Want to Upgrade?

To: Darla who wrote (2880)	7/22/1998 2:37:00 PM
From: Austin S.	Read Replies (2) \| Respond to of 10081

Darla - among many errors in your analysis is your assumption in advertising. There will be virtually no money in GMGC's budget towards this effort, to begin with. This is why GMGC is paying its resellers an aggressive 10% commission for 4 years on each activated Portico account. After 4 years, the 10% commissions revert back to GMGC. Moreover, GMGC will pay up-front cash (spiffs) to the resellers for each newly activated Portico account. (Remember that GMGC will charge each customer a $50 activation fee which will bankroll the spiffs). Activation Spiff...........Package.........Per Min Charge $20.............................$19.95...............60 min... >20› $35.............................$29.95..............150 min... >18› $40.............................$49.95..............300 min... >17› $60.............................$99.95..............750 min... >15› $80............................$149.95.............1300 min... >15› Since the average user is using between 450 and 650 Portico minutes per month, it is likely that GMGC will be modifying the above packages and thus the corresponding spiffs. Nevertheless, you can see how aggressive GMGC is being in paying its resellers. The spiffs essentially enable the resellers to hire Portico sales representatives on a straight commission basis. Not bad, eh? As to new resellers, GMGC requires that each authorized reseller have a minimum of 8 sales persons dedicated to hitting the road and selling Portico. Demo Portico accounts will be provided to the authorized resellers, but not for free. There will be a nominal per minute charge to each reseller for each (demo) Portico account for sales reps. to use in their work. (This nominal fee will cover GMGC's cost of each demo Portico account.) Each authorized reseller must (is supposed to - exceptions will be made) also have at least two locations with store fronts and sell a minimum of 1000 new Portico accounts per year to remain as a Portico reseller. Incidentally, GMGC is still actively signing up resellers, and they will not be officially announced until July 30th. What else?