GrooveVC Community Update – October 1, 2009

October 1, 2009 at 9:03 pm 4 comments

GrooveVC Community Members,

A quick note to update you on our progress and a few things community participants might find to be of interest.

As of September 30, 2009 GrooveVC  Community participants have now increased to a level (541) that our research suggests could be adding over $4,ooo per day to Vertro’s bottom line during the fourth quarter if the averages are in line with what we experienced with control group #2 in the experiment we undertook during the due diligence process.   During a quarter where management is projecting marginal EBITDA profitability, the importance of the Groove revenue stream should not be understated.  If the numbers above prove out, the searching/shopping of 500+ Groove participants would be adding more than $400,000 to VTRO’s bottom line during the fourth quarter.

The reported share holdings of community members is now well over 1 million shares and approaching 4% of Vertro’s outstanding shares.  We should note that the majority of the new Groove participants have chosen not to disclose their holdings.

We have grown our ranks by more than 400% over the past 30 days through simple word of mouth/viral marketing.  Please continue to encourage your contacts to join us and keep spreading the word to friends and business associates – the earlier in Q4 that we get more people involved, the greater the impact our aggregate “searching/shopping” power will have on Vertro’s financials.   Do not forget, when Vertro reports those fourth quarter numbers that will be impacted in a big way by our participation – the attention that will be thrust upon Vertro by the investment community should make expanding our ranks much easier.

The GrooveVC concept seems to be gaining traction, if the trend in new participants (more added in last two weeks of September than in the first 6 weeks of our existence) and the inquiries we have received from several notable small cap technology investors and hedge fund managers is any indication.   Keep up the good work!

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Entry filed under: Uncategorized.

The Upside of a Vertro Reverse Split Comment on Recent Form 4’s

4 Comments Add your own

  • 1. Allen  |  October 2, 2009 at 2:08 pm

    hi,I have Q for you
    I choose home.alot as my homepage but I usually check my e-mail first when I login.
    how I check my e-mail yahoo ot msn or aol at home.alot ?
    company should place all e-mail providers in front page.
    now later my wife get pissed off and change home.alot to msn.com because of not access to e-mail at front page.
    please let company know that checking e-mail should be easy and in front page ready woth icon.

    Reply
  • 2. don anders  |  October 2, 2009 at 2:11 pm

    You are so far off it’s hilarious. Do you think Google would be ok with you driving up their costs by 4k per day? Is this waitingitout?

    Reply
    • 3. jwbuffett  |  October 4, 2009 at 5:46 am

      Not sure where you think we are “off”, but your comment seems to suggest that Google might take issue with Alot users who click Google ads. You must be unaware of how the Vertro/Google partnership works. When a searcher uses the Alot.com toolbar or homepage to search the web, any click of the ads presented by Google results in revenue paid to Google. Google collects the bid amount from the advertiser and remits some portion (we believe its around 80%) to Vertro. Thus, if Vertro/Alot users clicked ads that generated $4,000 for Vertro, it added $5,000 to Google’s top line. Google then books the amount paid to Vertro ($4,000) as Traffic Acquisition Cost (TAC), which is an expense on their income statement. The remaining $1,000 is income to Google. Thus, Google’s revenue increased by $5,000 from those clicks and it contributed an additional $1,000 to their bottom line.

      I think you will find that Google is actually a pretty big proponent of people researching all of their purchases online before choosing which merchant to buy from, particularly when people use either Google or one of their partners like Alot.com. Despite all the really cool Google products and services (Google Earth, Google Maps, Google Apps, Android, YouTube, etc., etc,), people clicking ads is still how they make over 90% of their income.

      Reply
  • 4. jwbuffett  |  October 4, 2009 at 5:16 am

    Hi Allen,

    Good question – there is actually a way to set your homepage up where it will allow you a quick link to several of the most popular email systems – currently Yahoo, Ggogle, MSN Live/Hotmail and AOL. From your home page, click the “+ Add Content” button on the far left side of your screen near the top. You will then have a menu on the left margin that will include many options starting with “Business” and “Entertainment”, but you will want to look farther down the list and choose “reference”. When you click the Reference option, you will have several new options to choose from including “Web Tools”. Click “Web Tools” and Email will be one of the first choices you will see. Simply click to add it and it will appear at the top left of your home page. From there you can drag it to the spot you prefer on your home page.

    Reply

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