Q: What's black and white and apparently not red a
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Posted On: 06/11/2020 11:17:43 AM
Re: gobears1985 #19895
Q: What's black and white and apparently not red all over?
"However, we currently intend to use the net proceeds to us from this offering primarily for broad-based market awareness of our existing and forthcoming products, including verbLIVE , and for general corporate purposes, including working capital, research and development, and capital expenditures."
A: S1
Yup, you read it. Answers a lot of questions.
Now why would any company need to market their products and when is the right time to do so?
There is a right time, right place and of course, the opposite
I've posted links to how to start and grow SaaS companies. Most of say the same thing, more or less
First of all, you have to have a great product or series of products. Product need to be different and solve some significant problems.
You have to work out the kinks of those products. Get feedback from customers, Figure out the pricing model. Too expensive and it won't sell. Too cheap and you won't be in business long
Next you have to be able to scale. It's easy to develop a solution. Much harder to scale it. This is shark tank 101 stuff. It's one of the first things they asked themselves. Wonderful product, but is it scaleable?
Scaleable means two things to me.
Is there a large market for your product?
Can you fulfill that demand and with good margins?
That old joke of, we are losing money on every sale, but we'll make it up on volume, isn't a really a joke to some companies.
We know Verb has great margins. Now we are about to get into the customer acquisition cost side of the equation.
Great product, unique, solves a problem, can scale, what's left?
Marketing...
Brian David Kinstlinger
Alliance Global Partners, Research Division
"In terms of VERB Live, we’ve seen huge demand for Zoom and Microsoft Meets. And I guess, I think about your balance sheet, yes, you raised money, it’s still limited, and you don’t want to increase losses too quickly. How do you market that? How do you weigh marketing that and using dollars for that to this piece of technology you have that is highly differentiated and has valuable functions that Zoom and Microsoft Meets maybe don’t have , so you’re trying — just how do you market, how do you weigh marketing that product with their capital?"
Rory J. Cutaia
Founder, Chairman, President, CEO, Secretary & Treasurer
"Okay. Great question. And look, if we just developed that product, and that was the first thing we’ll go in to market with, yes, it would be tough. You’d have to have a serious cache of money to go and try and market that. But about what I just talked about with respect to our new in-app purchase capability. We have an existing user base now. These are people that have the device in their hands — of now over 1.4 million of these people. Those are the first people that we’re going to go to. We’ve already got 15 of our existing enterprise clients that have signed on for it. So as soon as we release it commercially, we’ll have all of those people. But then all of those individual VERB live will be behind the pay wall for all of those people so that they could put their own credit cards up if their company hasn’t subscribed for it yet for them. They put their own credit cards up and immediately subscribe for it and marketing to those people is simple. We don’t have to spend zillions of dollars with TV commercials to reach those people. It takes us about 5 minutes to send a notification right to their device, notifying them, “Hey, check this out. Cool new feature, combination of Zoom and Shopify. Think about what that means for your business. People can click right in your live video and buy your products.” Yes, a big, big, big differentiator for us is the fact that we already have such a large user base that we can market to."
Let's see, the Q call talks about marketing, the S1 says the funds are primarily going to be used for marketing.
Just a wild guess, but I think they are going to use some of the money for marketing.
But notice "forthcoming product s "
Could it be more is coming beside Verb Live?
Yup, we already know there is more coming.
When I saw the $11.5M I was thinking maybe some of that would be used for an acquisition. Buy a company that is profitable, but can't grow because they are missing the secret sauce. I think that will happen, whether it's still year or next.
Keep in mind the biggest cash outlays are now. Developing and marketing the products. Once you get through that, you can throttle back on both or double down depending on how fast your products sell.
For those that want, take a look at the link I posted below. The charts make it very easy to figure out what is going on and where VERB is at.
Hint: "Pour on resources for growth"
The Stages Of A SaaS Company: When To Scale For Success
https://www.chargify.com/blog/the-stages-of-a-saas-company/
For fun you can read AirBnB's journey.
https://inc42.com/resources/airbnbs-journey-f...n-company/
"However, we currently intend to use the net proceeds to us from this offering primarily for broad-based market awareness of our existing and forthcoming products, including verbLIVE , and for general corporate purposes, including working capital, research and development, and capital expenditures."
A: S1
Yup, you read it. Answers a lot of questions.
Now why would any company need to market their products and when is the right time to do so?
There is a right time, right place and of course, the opposite
I've posted links to how to start and grow SaaS companies. Most of say the same thing, more or less
First of all, you have to have a great product or series of products. Product need to be different and solve some significant problems.
You have to work out the kinks of those products. Get feedback from customers, Figure out the pricing model. Too expensive and it won't sell. Too cheap and you won't be in business long
Next you have to be able to scale. It's easy to develop a solution. Much harder to scale it. This is shark tank 101 stuff. It's one of the first things they asked themselves. Wonderful product, but is it scaleable?
Scaleable means two things to me.
Is there a large market for your product?
Can you fulfill that demand and with good margins?
That old joke of, we are losing money on every sale, but we'll make it up on volume, isn't a really a joke to some companies.
We know Verb has great margins. Now we are about to get into the customer acquisition cost side of the equation.
Great product, unique, solves a problem, can scale, what's left?
Marketing...
Brian David Kinstlinger
Alliance Global Partners, Research Division
"In terms of VERB Live, we’ve seen huge demand for Zoom and Microsoft Meets. And I guess, I think about your balance sheet, yes, you raised money, it’s still limited, and you don’t want to increase losses too quickly. How do you market that? How do you weigh marketing that and using dollars for that to this piece of technology you have that is highly differentiated and has valuable functions that Zoom and Microsoft Meets maybe don’t have , so you’re trying — just how do you market, how do you weigh marketing that product with their capital?"
Rory J. Cutaia
Founder, Chairman, President, CEO, Secretary & Treasurer
"Okay. Great question. And look, if we just developed that product, and that was the first thing we’ll go in to market with, yes, it would be tough. You’d have to have a serious cache of money to go and try and market that. But about what I just talked about with respect to our new in-app purchase capability. We have an existing user base now. These are people that have the device in their hands — of now over 1.4 million of these people. Those are the first people that we’re going to go to. We’ve already got 15 of our existing enterprise clients that have signed on for it. So as soon as we release it commercially, we’ll have all of those people. But then all of those individual VERB live will be behind the pay wall for all of those people so that they could put their own credit cards up if their company hasn’t subscribed for it yet for them. They put their own credit cards up and immediately subscribe for it and marketing to those people is simple. We don’t have to spend zillions of dollars with TV commercials to reach those people. It takes us about 5 minutes to send a notification right to their device, notifying them, “Hey, check this out. Cool new feature, combination of Zoom and Shopify. Think about what that means for your business. People can click right in your live video and buy your products.” Yes, a big, big, big differentiator for us is the fact that we already have such a large user base that we can market to."
Let's see, the Q call talks about marketing, the S1 says the funds are primarily going to be used for marketing.
Just a wild guess, but I think they are going to use some of the money for marketing.
But notice "forthcoming product s "
Could it be more is coming beside Verb Live?
Yup, we already know there is more coming.
When I saw the $11.5M I was thinking maybe some of that would be used for an acquisition. Buy a company that is profitable, but can't grow because they are missing the secret sauce. I think that will happen, whether it's still year or next.
Keep in mind the biggest cash outlays are now. Developing and marketing the products. Once you get through that, you can throttle back on both or double down depending on how fast your products sell.
For those that want, take a look at the link I posted below. The charts make it very easy to figure out what is going on and where VERB is at.
Hint: "Pour on resources for growth"
The Stages Of A SaaS Company: When To Scale For Success
https://www.chargify.com/blog/the-stages-of-a-saas-company/
For fun you can read AirBnB's journey.
https://inc42.com/resources/airbnbs-journey-f...n-company/
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(0)Verb Technology Company, Inc (VERB) Stock Research Links
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