Verb Technology Company Inc (VERB)

[Nspireaction]

Verb Direct

Justin Butler: What kind of plans does Management have to increase the average revenue per user of Brightools’ taggCRM application?

Rory Cutaia: As you know—you’ve heard me talk about this in the past—it’s all one platform now. There’s not a separate VERB product and a separate Sound Concepts product, it’s one company, it’s one platform. Within that platform, there’s different products, and we can’t talk about that. For the most part, we’re selling to enterprises, large enterprises that have thousands of individual users, and the monthly subscription is paid by the enterprise. However, in an upcoming release, which we’ll probably see this summer—in fact, there’s going to be several releases this summer, but we’re adding in-app purchasing for individual users. So, while the Company is paying for them to use the app with the basic feature set, individual users will be able to add on certain kinds of features, such as video filters, stickers, the video template store. Even the interactive video itself will be an upgrade for some of the customers that we’re using—that we’re working with, rather. So, we would expect to generate substantially more revenue from the existing customer base than we’re generating at this moment.

Nathan Winfree: With inheriting a large sales team as part of the acquisition, does VERB have any of the former Sound Concepts sales team members now solely focused on the other verticals, such as the education and non-profits?

Rory Cutaia: No, we don’t, and the reason is this. The direct sales network marketing space is huge, it is a massive market, there’s very little competition in that space, and while we are, I believe, the dominant player, we still have a very small percentage of market share there. I think there’s enormous growth for us and I want these guys, who are experts in selling that to them, I want them focused on that, and we’re incentivizing them in certain ways and doing some things that I believe will help us get—or capture a much larger share of that market.

Now, we have brought in outside sales reps that are focused solely on those other sectors that you mentioned. They are success fee-based, so they don’t get paid unless they actually close a transaction in those particular sectors. We are adding people that will focus on those sectors, but the former Sound Concepts sales guys, who are really amazing, talented people, that are experts in that field, I want the experts focused on that. I hope that answers you question.