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.

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

Sell, sell, sell.

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

So as you could see, we still have the same cost of goods to manufacture the product as before, 33.

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

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.

Make it 50 and you've got a deal.

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

But remember, our costs were lower.

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 know, that actually might make sense.

Sold

PHOTO RELEASE

What do you sell?

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?

never to be sold or developed.

We call it a select opportunity .

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.

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

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.

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.

But the growing dominance of the market economy, where the products of our intellectual labors are bought and sold, produced an unfortunate side effect.

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.

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

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

uncle Ian is gonna have a big launch party for the new CD.

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.

He sold you the roofilin?

They get the exclusive property rights to control the drug selling.