GrooveVC Community Update March 5, 2010
As of February 28, 2009, GrooveVC Community participants have now increased to a level (1524) that our research suggests could be adding over $13,000 per day to Vertro’s bottom line during the month of March 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 1,524 Groove participants would be adding more than $1,000,000 to VTRO’s revenue during the first quarter of 2010.
Each month we report the number of active community participants so that we can see the potential impact of our viral marketing campaign, which allows each person that our members introduce to this concept to get a feel for how important each new searcher/shopper can be in the big picture. While we have no way to track actual searching or toolbar/homepage usage by our participants, we do believe that the metrics from our original control groups are quite reasonable and may even understate the impact that our users can/will have on Vertro’s results going forward. We believe that the active community members have grown to a point where we are now having a material impact on Vertro’s numbers each month. This may be best evidenced by Vertro CEO Peter Corrao’s recent comments at the AGC West Coast Conference earlier this week, where he mentioned the impact of “organic/viral” marketing at an investor conference for the first time. He made a point during the conference to point out that organic/viral marketing was a growing part of the company’s growth when he said that”we are doing more and more ” viral/organic marketing and emphasized the value of this channel because “..they tend to be stickier and stay with the product longer…. and they do not cost us anything.”
Congratulations to all GrooveVC community participants. Your consistent use of the Alot.com toolbar and home page for searching/shopping has reached the point where its signficant enough to be mentioned to potential investors as an important channel and driver of Vertro growth going forward. Given the growth we have experienced the last few months, we should expect to see our efforts having an even greater impact on Vertro’s results in the first quarter of 2010 than we did in Q4. As the results of Q4 are reported sometime over the next few weeks and investors get to digest Vertro’s first profitable (EBITDA) quarter, we should start to see an increasing recognition of Vertro’s potential from investors, which should give us an even bigger opportunity to increase our ranks among investors who will be able to see our actual impact on Vertro’s financials. Let us be diligent in spreading the word to other friends and business associates over the last few weeks of this quarter and enjoy the ride in April and May as more and more investors discover Vertro. Keep searching/shopping with Alot.com and spreading the word!
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