Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Austin S. who wrote (2883)	7/22/1998 6:47:00 PM
From: Darla	Read Replies (1) \| Respond to 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!

To: Austin S. who wrote (2883)	7/22/1998 7:30:00 PM
From: CanynGirl	Read Replies (2) \| Respond to of 10081

I agree with your assessment Austin. Channel programs will be heavily relied on. GMGC doesn't have the money that a new IPO does. Therefore, they have to be careful in their growth plans and not get ahead of themselves. Just to put advertising expenditures in perspective: AMZN: spent ~$25m in '97 on all Marketing (advertising included) EGRP: spent ~$20m in '97 on Advertising AMTD: expected to spend ~$20m in Advertising this year AOL: spent roughly 24 cents of every revenue dollar on all Marketing in it's 'formative' years '94-'96 INTC: spends roughly $120m per year worldwide on Advertising If sales are strong over the next few months, that might allow them to spend $20m next year. Hopefully we'll all get a warm fuzzy feeling when they announce the reseller list. And, who knows, maybe they'll say they already have a significant number of subscribers. Personally, I'm anxious for Oct earnings report. Then, I think they will have a good feel for the business.