And their value proposition, as even they realized later, was pretty unclear.

We should be charging for it from day 1, or Wait a minute.

How big is this and what's the percentage marketshare realistically you could get?

Not really, because the next thing we want to look at is, what we call the served available market.

Sell, sell, sell.

So, you're selling costs were embedded here, this was the commission or direct sales costs or whatever you were paying your direct sales people and you made 37 selling directly.

In other words, how are we going to make money?

Now, when companies first started, there were essentially manufacturing concerns and they hired agents, outsiders to be their sales channel, and the first types of companies we had made physical products and therefore, had physical channels salespeople, stores, etc., but with the emergence of the web, we now have web and mobile channels.

You are going to start thinking about, well, if I have a direct sales force, how much can they sell in dollars, or if I'm using an indirect channel, what's realistic number they sell for other customers?

But remember, our costs were lower.

Our sales organization for Gamma is not strong.

Output Channels

But this is, of course, an optimistic scenario. Let's think of other scenarios.

Now what's really interesting is pre 1990s, the only channels to get to a customer was at physical channel.

Sold

PHOTO RELEASE

What do you sell?

But it wasn't until the mid 1990s with the emergence of the Internet that we were able to distribute physical products through a virtual channel.

So you might be selling hundreds or hundreds of thousands of cases of toners, but you might be doing ten large system integrations a year.

The aggressive salesman urged me to sign the contract right away.

We call it a select opportunity .

In a physical channel, a direct sales force are sales people that work for you directly and typically sell directly to the end user.

He sold you the roofilin?

You partnering with a much larger company means you could take advantage of their supply chain or their volume discounts or the massive sales force they have.

He's like, you know what, we have to match his prices.

My dad sells tractors.

And the marketing complexity, would simply just say toner for you printer.

Competitors, by definition, they are many.

And so therefore on the x axis, we see increasing complexity of what each channel can actually have.

This is the PC guy over here.

I'm a salesperson.

I had to break a machine open.

Our liquor license!

What's so awesome about a queensize futon sale?

This guy is a Bible salesman.

And they thought their value proposition was going to provide a cheaper way to officially license sports jerseys to a game, eliminate the risk of owning a player whose jersey is traded, and to provide alternatives to purchasing counterfeit jerseys.

So the first thing when you sell a widget is you make it and you just sell it.

And the reason why they're the sell side is because they're always selling you stuff.

And that's better than what you get out of treasury bonds.

So that's what sell side means.

So now they're in it together.

October is inventory time.

Anything from the trolley?

Cell phone salesman.

He could also be a Bible salesman.