Revenues can come from two other main areas apart from phone service revenues which are not currently self evident to you and many others on asx i would imagine.
1/ Advertising revenues
2/ Capital Revenues
Now you may ask what capital revenues i might be talking about and how a free service can actually increase your wealth without increasing NOR immediate revenues. Its a fair questions to ask but you should know the answer already
descerningstarter.
How many phone Apps have been purchased for $billions and they were losing money at the time ? Why would a buyer pay big money for a company losing money?
Ok so WP to WP is being offered free to Iphone users and hopefully later to Android phone users and there is no immediate revenue true but it just so happens that I'm having a website constructed for
www.guardianestates.com.au which will be advising potential sponsors from overseas that they will be able to contact us for free if they download the WP App.
Now I don't know how many people will read our Facebook ads or look into our website but whatever number that is and if some download the App it will have cost Norwood Systems
nothing, whereas not long ago NOR had to raise money to pay $1 pr download.
Now if all WP customers do something similar as
www.guardianestates.com.au the exponential multiplier effect could be enormous if the WP service quality is better than the others in the same space.
Ok so some who download might call us for free and later they might call others and pay the rate and if some of those people tell their clients the same deal, how many downloads and quality customers might download the WP App over any given period?
What I'm implying is that if NOR does not make a profit for 5 years but keeps building its free downloads to 20 million then someone might pay $20 billion to buy out NOR shareholders because they might assume the demographics to on sell other ads might be worth all of the $20 billion.
Now i have Viber but i dont consider it too highly because most of my bad ex tenants are on it too and that's not a demographic i would want to try selling anything to unless its prepaid. WP might be different because if downloaders can afford to travel, they can afford to buy other things and their friends are unlikely to be down and out. Just saying...but more to this game than meets the eye.
Look at Facebook...free service now makes a fortune from ads, Google Free ..now makes money from ads. Twitter free..starting to make revenue from ads...
Look on the smile on face of P.O... quietly confident i would say....
All comments agreeing or disagreeing welcomed.
(20min delay)