Subject: Competitor sample contract
From: "Neil Callahan" <[email-masked]>
To: <[email-masked]>, "'Michael Andrews'" <[email-masked]>, "'Curt Hastings'" <[email-masked]>, "'Rob Mitchell'" <[email-masked]>, <[email-masked]>, "'Devon Archer'" <[email-masked]>, "'Eric Schwerin'" <[email-masked]>, "'Hunter Biden'" <[email-masked]>, "'Chris Heinz'" <[email-masked]>
Date: Tue, 14 Sep 2010 11:28:01 -0400

Hi team:

Attached is an actual live competitor contract.  Take a look.

Their approach is a  "wide & shallow" one and they are asking for short
money - similar to a software company:  their goal is to keep you mildly
dissatisfied - and because it's not a lot of money a year and someone gets
some value out of it somewhere in your company - you renew your subscription
each year.

To model out Eurasia and assume that this contract represents an "average"
client:  

-          $72k annual revenue = 1 client  

-          $5m annual revenue = 70 clients  

-          $100m annual revenues = 1,400 clients

Their model assumes having scores of "analysts" on staff and/or on contract
to meet the needs of potentially 1,000 or so clients.  

And a commercial content delivery product/technology that is easy to build,
but a lot of work to maintain and support clients (i.e., I forgot my
password, I can't find my report, etc.)

So a fairly robust operation is needed to support such a "retail" offering.
Not a bad business, but one with many moving parts and lot's and lot's of
client service.

Best,

Neil

 

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Neil Callahan

Rosemont Seneca

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