Radioio Inc (RAIO)

[rasta48]

Revenue Growth...

So now that we are on the advertising model along with IO for Business, IWDM will have to grow advertisers in order to grow revenue. For every .01 increase in PPS we get a $1.6 million increase in market cap. To keep a very generous 10x multiplier (which is unheard of in a penny stock) and currently IWDM will need to increase revenue by $166,000 and maintain that. That means for every penny increase IWDM must add and maintain a 10% revenue increase. IWDM is projecting less than $2 million in revenue for 2011.

Word on the street, after a very candid interview with Mel Karmazin is that the advertising model is the most difficult to maintain revenues with.

"The advertising business today is not as good of a business as it used to be. The main reason is the Internet has made so much content available and so much supply available it's difficult to have pricing power," said Karmazin.

What other avenues does IWDM have to generate revenue with out increasing expenses?