PowerLinx Inc (PWNX)

[Golfnut]

BigBiz: Normal agency commission on a $2MM advertising budget is $300K. It's highly possible that not all of the $2MM was run thru RLM Assoc; Trade Show fees, airline tickets and hotel rooms, for example, are part of an advertising budget, but often companies are billed directly. Even at that, I remember Rich saying Seaview paid RLM Assoc. somewhere in the neighborhood of $65K, and that's a real bargain. It means they got $2,288,000 worth of advertising instead of $1,700,000 for their $2MM

I have to agree with Bill B. though, on the size of the budget. With very little product being produced, and very little money coming in, SOMEBODY should have said WHOA!

Having seen the $9,000,000 worth of backorders at the open house, I don't think the $2MM was responsible for generating more than $1MM of that. The other $8MM were the result of telephone solicitations, which were amassed, IMO, by asking "Would it be allright if we sent you $6000 worth of cameras if you don't have to pay for them until you sell them?" And the cost of that $8MM of orders would come out of salesmen salaries, which I doubt is part of the $2MM advertising budget. (And it should be really obvious that this type of "Consignment" order should be the very LAST to be filled!)

Anyway, all of this is JMHO, and the numbers I've used are just generalities. So don't quote me and don't sue me!

Golfnut