Replies to post #28275 on Red Giant Entertainment, Inc. (fka REDG)

[rickn23]

I would define a flawless execution as getting all ad spaces filled at the maximum CPM (that REDG is asking) for enough months to reach a full quarterly report, if not a whole year. This would not depend on Benny pre-announcing anything. We can see the revenue, gross profit, and net profit, allowing people to calculate what the company is worth.

A less flawless execution means any one or more of those are missing, and all bets are off. The company needs to be profitable, it doesn't need to fill all the ad spaces to do that, nor does it need a fully competitive CPM rate. These thing would reduce the profit potential of the company.

I'm guessing some advertisers are signed up for a single month, maybe for more than one book. Some might be signed up for more than one month. I doubt any are signed up for a year. I don't think it would be prudent to sign a long term contract with an essentially new and untried company, especially at competitive CPM rates.

REDG doesn't need to hang on to all the advertisers for a year, they need to continually add advertisers. Studios with new movies coming out, can buy ad spaces for a month before (and maybe after) their movie comes out, not all year. Same thing with networks and new (or continuing ) TV shows. REDG just needs a big pool of advertisers to circulate between as they have need. It's one of the reasons I though they should go with a lower CPM rate, rather than a competitive rate.

[imhereforthehaul]

Just for the ease of it you can look at it another way. look at the common denominator, the price. Each projection is higher then where we are now, better yet each is showing over .02 cents. Well, except one, Freddy is gone and another took his place to show that we are going nowhere.
Anyway, that is a very valid point and the only one I see as an issue of what happens after the holiday and advertising is at a lower cost or lack of advertisers.

The answer? simple, they bust their balls and look for more outlets and refine the product. Find more outlets and advertisers will find you. How about making the giant size regular size for airlines like Spirit air that doesn't want to pay for anything and have the person in the seat pay for everything? Can you imagine going to an airport and having free comics going out to everyone buying something in anyone of the stores at the airport? Or sitting on a plane and seeing the regular sized Red Giant comic in the seat pocket in front of you? That's how many a day? Or how about going on a cruise and seeing a free red giant comic on the bed? And there is always getting a free comic while walking out of Great Adventure at night. Or better yet, how about walking down the strip in Vegas and picking up a comic from some guy slapping a comic on his hand or from paper box instead of cards for strippers and prostitutes? That's a family area now and millions of kids are through there each month. Think of just the media they would get and the promo from that When Wayward Sons the movie is coming out?
I think Benny knows how to think out of the box, the boys just need a kick in the ass and work it, It can be done.

[Stevo 22]

Really good question gimme.

I have been wondering the same thing.
How long does the TRU deal go for?
I remember making a note during the presentation where it sounded like TRU had a really quick exit if this doesn't work but then Benny referred to this being more like a partnership which leads me to believe that even a less than stellar start will not get them tossed.
However I do don recall how long the TRU deal will run for.
Any help?