Hi @PharmD, I really don't know where to start. You can call me a negative nancy if you like, but I am cautious about calculations especially when the true details are not known. I mean, looking at the b2B stuff, Spenda has a solution that simply makes invoices between disparate companies easier (Excuse me for over simplifying)
So, what is Spenda's attraction? Supposedly saving a crapload of man hours invoicing etc. OK, so, are you in sales or have any experience in sales? How will Spenda get into a company so they will agree to use the software. There MUST be a value proposition. I have posited previously that POSSIBLY everything will be revenue neutral until the 'spokes' kick in, WHY? you may ask
OK, Lets say I already estimate my expense doing invoices is 'x'
To change to 'y' will need to be a value proposition, being a substantial saving to the existing 'x' - don't you agree?
SO - Making up figures, say today costs are 1 billion per annum, New company wants me to change to 'y' by (Perhaps) saying - "we will implement our method into your system and save you 50% on your current costs" Go with this for the sake of constructive discourse
I, my lawyers and and board discuss things and think 'what a great idea, but lets screw them down as tight as we can for OUR shareholders"
Is there a possibility (In your mind using this scenario) that the final agreement will save my company money, and due to the extra functionality (That we might use at some point) will also be cost effective compared to current arrangments?
I see the above scenario a relevant consideration and further feel that real revenue will only be generated (After costs) when the 'Nodes' are fully operational.
So. To get the business the initial pitch is to be cost competitive for a net future gain. The percentages are 'fluid' - if everything is taken up we will see 1% or 2% of all B2C - but B2B not so much. Does that make sense?
I am making up the figures to try and get my perspective over, insert your own and come up with the proposition that Spenda put to Cap.
Cheers,
AIMO - Ballsup by name and by nature
SPX Price at posting:
1.4¢ Sentiment: None Disclosure: Not Held
(20min delay)