Titan Medical Inc (TMDIF)

[RockoTaco]

Another advantage of forming distributors to sell product initially is they are incentivized to do so. When hiring an internally sales/marketing team, there is incentive for them to sell but they are also paid a nice base salary to offset the ramp up time (whereas distributors are not). There is some of that "collecting a check" mentality while ramping up manufacturing (if done inhouse) or worse a shift in direction from one product platform to another.

By hiring distributors, as soon as the product is ready, Titan can unleash it to all of Asia/Pacifica immediately and any other countries where they have distributor agreements. If we tried to hire an internal Sales/Marketing personnel, we would only be limited to sell where we have someone hired - which would greatly slow the adoption of SPORT.

An example, say Titan wanted to hire sales people - they will need money (i.e. $50M - which will be raised by issuing stock) - PPS goes down - even when we finally get the cash - it will now take 12-16 months to get a sales team in place - have to start at the top with a VP sales - that will take 3-6 months - especially if they are going for a good one - they can't move forward until they get the VP in place b/c that person will want to hire a director and regional/area personnel who will then want to hire local sales people. If Titan were to begin hiring sales/marketing personnel TODAY - they won't have a complete sales team in place for 18 months and that is just a US Sales team.

If Titan were taking this strategy for a sales team, being a startup robotics company, I would probably run for the hills and would certainly reduce my position significantly.