GrooveVC Community Update – December 1, 2009
A quick note to update you on our progress and a few things community participants might find to be of interest.
As of November 30, 2009, GrooveVC Community participants have now increased to a level (885) that our research suggests could be adding over $7,800 per day to Vertro’s bottom line during the month of December 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 885 Groove participants would be adding more than $550,000 to VTRO’s bottom line during any given quarter.
The reported share holdings of community members is now over 1.6 million shares, which is slightly more than 4.5% of Vertro’s total outstanding shares.
We have now been active for a little over three months and our ranks and percentage ownership in Vertro continue to grow substantially each month. We have added over 160 new community participants over the past 30 days and we remain on track 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.
Last month’s quarterly conference call should be quite gratifying for all current members of Vertro as Management reiterated their expectation for achieving EBITDA profitability in Q4, segregated reporting of tool bars and revenue by region and generally provided a level of transparency not provided prior to our requests for such. Further, all GrooveVC participants should be pleased to note that our word of mouth marketing efforts are working quite well and we fully expect to achieve our goal of having a group of like minded participants 1,000 members strong to help drive further revenue gains for Vertro and to continue spreading the word about ALOT. Our efforts are really just starting to make a substantive impact on Vertro to a degree that we should have a material impact on Vertro’s numbers when the report for Q4 is released. We believe the Groove’s impact will be well into the six figure range and should allow Vertro to exceed analyst’s revenue expectations of $8.3 million for the quarter.
Keep searching/shopping and spreading the word!
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