The...
...we need to market more
...we need more customers
is valid feedback, but it is a challenge almost EVERY company faces.
This is why Google, Facebook and other companies make a killing on advertising.
Part of bring in customers is on the influencer. Part is on the company. I like that it's not 100% on the company. Would be better if it was 100% on the influencer and they had the ability to do it.
If you watch Share Tank or understand the sales funnel and conversion process, customer acquisition cost (CAC) is a big part of every business. What does it take to acquire a customer? If the cost is too high compared to the net profit they will bring, the model fails and it's not a good business.
Blue Apron and many other companies live or die by CAC and repeat customers.
If we go back to the news Verb released, you can see that they are working on it. I'll paste it again as reference. Any future acquisition should be structured where there is shared risk and reward. If the acquisition results in a lot of revenue, then reward that company.
...we need to market more
...we need more customers
is valid feedback, but it is a challenge almost EVERY company faces.
This is why Google, Facebook and other companies make a killing on advertising.
Part of bring in customers is on the influencer. Part is on the company. I like that it's not 100% on the company. Would be better if it was 100% on the influencer and they had the ability to do it.
If you watch Share Tank or understand the sales funnel and conversion process, customer acquisition cost (CAC) is a big part of every business. What does it take to acquire a customer? If the cost is too high compared to the net profit they will bring, the model fails and it's not a good business.
Blue Apron and many other companies live or die by CAC and repeat customers.
If we go back to the news Verb released, you can see that they are working on it. I'll paste it again as reference. Any future acquisition should be structured where there is shared risk and reward. If the acquisition results in a lot of revenue, then reward that company.
Quote:What this means for Team VERB moving forward is that we have a much leaner organization, a smaller team of professionals, laser-focused on MARKET.live, together with the resources needed to implement and execute the growth initiatives that for the most part, have been put on hold over the past 6 months while we were in capital preservation mode.
As I referenced above, and as disclosed in the Form 8-K we filed today, on June 12, 2023, we executed a non-binding letter of intent to acquire certain assets of an e-commerce company (the “Target”) that we believe are not only highly complementary to our MARKET.live business, but could serve as a major catalyst for growth (the “Acquisition”).
The Target’s unaudited financial statements indicate that for the year-ended December 31, 2022, the Target generated transactions totaling approximately $9.5M in gross merchandise value (“GMV”) and was cash-flow positive. It was represented that the GMV was generated by the Target’s approximately 70,000 current active subscribers, each of whom receive daily auto-generated communications from the Target about the preferred brands and products the subscribers selected at sign-up, available for sale each day. Subject to the successful completion of the Acquisition, it is our intention to incorporate the Target’s technology and operations into MARKET.live, so that the transactions that comprise the Target’s GMV will be facilitated on and through our MARKET.live platform, potentially at higher margins. Potential corollary benefits of the transaction include the exposure of the MARKET.live shoppable entertainment programming to the Target’s 70,000 subscribers, possibly driving additional sales, among other benefits, including paid ads and sponsorships. Consideration for the proposed Acquisition will be a combination of cash and stock, structured as a seller note payable over 24 months; payments are subject to actual cash receipts as represented by the seller.
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