Groove VC Community Update
A quick note to update you on our progress and a few things community participants might find to be of interest.
As of October 31, 2009, GrooveVC Community participants have now increased to a level (722) that our research suggests could be adding over $6,400 per day to Vertro’s bottom line during the fourth quarter if the weekly click revenue averages are in line with what we experienced with control group #2 in the experiment we undertook during the due diligence process. If the numbers above prove out, the searching/shopping of 720+ Groove participants would be adding more than $500,000 to VTRO’s bottom line during the fourth quarter.
The reported share holdings of community members is now over 1.5 million shares, which is slightly more than 4.2% of Vertro’s total outstanding shares. We should note that the majority of Groove community participants have chosen not to disclose their holdings.
We have now been active for a little over two months and our ranks and percentage ownership in Vertro have grown significantly. We have added 180 new community participants over the past 31 days and the momentum we currently see may allow us to achieve our original goal of having 1,000 active community participants by the end of 2009. As discussed in our original due diligence report on Vertro, if we can get 1,000 investors/consumers to use one of the Alot services (toolbar, home page or desktop) to search/shop all of their purchases online, we could (based on the numbers achieved in our experiment) add several million dollars to Vertro’s bottom line over the course of calendar year 2010.
In the meantime, we fully expect to see the hundreds of currently active users make a significant impact on Vertro’s fourth quarter revenue and earnings as our existing members continue to use Alot for all of their searching/shopping and continue to show friends, relatives and business associates how invest in and use Alot. While the soon to be reported third quarter will be impacted very little by our community (given that we only began in the last few weeks of the third quarter), we do expect to see some impact on the metrics reported, particularly in any updates that include the month of October.
A special thanks this month to the Alot development team for adding a tool to help us spread the word – see the “tell a friend” button just below the big ALOT icon and to the right of the “add content” and “tutorial” buttons on your Alot home page. Move your cursor over the “tell a friend” button and see how easy they have made it to use social networks, bookmarking services and email to spread the word about Alot.
Keep searching/shopping and spreading the word!
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