SNIPP CEO on 16 Quarters of Consecutive Growth
Atul Sabharwal on the “huge multiplier effect” of the Snipp sales model
February 1, 2016 — In a special InvestorIntel interview, Publisher Tracy Weslosky speaks with Atul Sabharwal, Co-Founder, CEO and Director of Snipp Interactive Inc. (TSXV:SPN | OTCQX:SNIPF) on Snipp’s sales performance, which has led to an impressive 16 quarters of consecutive growth. Atul explains the impact of Snipp’s “huge multiplier effect” on sales and their commitment to technology and strategic advertisement programs that quantifies advertisement dollars for the overall benefit of client brands and the consumer.
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Tracy Weslosky: Atul you just put out a news release that was particularly impressive (also, please note the news release last week: Snipp Interactive Selected to the 2016 TSX Venture 50® for Second Year in a Row) and I think it reflects your sales model. If I understand you correctly this is one of your competitive advantages for Snipp and your shareholders. You announced seventeen new promotions — base programs just this last month for nine unique clients and sixteen unique brands across the U.S., Canada and the UK, and eight of which were repeat clients expanding their promotion efforts through Snipp. Now is this is one of the many benefits for Snipp and your revenue model, is that once you get into the company, these Fortune 500 advertisers, you start expanding into other products?
Atul Sabharwal: Right, sure. You know, all of our clients are Fortune 500 clients, like Johnson & Johnson, L’Oréal, Clorex, household names and some non-household names, but basically we focused our company on building out a platform that can help these multi-brand companies get really consolidated and work the data across the promotion spend that they have. We have a huge multiplier effect in our business where if I break into someone, like a Procter & Gamble or a Unilever — think of a Procter & Gamble, it’s nothing but a collection of over 200 brands or L’Oréal or an Anheuser-Busch, you know, they have multiple brands of beer, right? By definition, the minute I break into one brand that has its own budget you suddenly qualified yourself with other brands and the sales process becomes much easier because you just get a reference into the other brand manager and that’s how our business keeps multiplying. Also there’s a second multiplier effect that happens because we only work with really large advertising agencies. Take Omnicom for example, the second largest advertising group in the world, you know you start working for one of the agencies and that agency basically has relationships with other agencies within the world of Omnicom and they don’t compete for the same client. So by definition when I break into one agency of Omnicom I’ve broken into multiple agencies of Omnicom, but the beautiful part is that agency of Omnicom will probably have multiple clients so if I do work with one client and one agency suddenly not only do I have a multiplier effect on the brand side, but because other brands see what we do and they work with different agencies, but then other agencies see what we do within that same group so it just becomes a vicious circle of, you know, more and more work comes our way without much investment in sales and marketing once we’ve broken in.
Tracy Weslosky: Okay so I love this sales multiplier formula that you have. Am I correct to understand that you have $15 million plus in your revenue pipeline right now and about $9 million in the bank?
Atul Sabharwal: That’s true. We do have USD$9 million in the bank…to access the complete interview, click here
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