nitzan
Premium,VIP
join:2008-02-27
 ·ViaTalk
 ·Comcast
| reply to RockyBB
Re: [Lingo] Is it time to move on?
said by RockyBB  :Coincidently, just today I received a solicitation to be a selling agent for Lingo -- with huge commissions. Perhaps your fears are not so justified. see attachment That should make you more worried about their financials, not less. 
Most VoIP providers operate as a total bubble. They use today's revenue from new signups to pay for operational, advertising, and debt service costs for past subscribers. This works great when your userbase is growing, but the minute it stops growing - they're bankrupt. This is essentially what happened to SunRocket and what will very soon happen to MagicJack. (call me pessimistic but mark my words- they'll be gone before the end of the year)
Solution? there is none. They're stuck in an endless cycle where if they stop spending huge amount of $ on advertising they're dead meat, but because they're spending so much money on advertising they're making no profit and no progress.
The only providers I've seen so far who are not playing the catchup game are VoiceStick, CallWithUs, and of course Future Nine. In FN's case, instead of taking a bunch of loans and starting said cycle, we just financed it privately (family) and are building the service profitable from the ground up - without all the advertising costs. It's hasn't been long, but I'm glad to say we are profitable already! 
--
Nitzan Kon, CEO
Future Nine Corporation |
