In the future, additional sales are likely to be derived from corporate services, custom searches and e-commerce. For the same reason people buy prepared dinners rather than preparing their own time and convenience. With the SEC s regular data base, there is a delay of several days before filings become accessible. They also are entitled to a new service called IPO Express. Management says it is adding 40 to 50 new paid subscribers every day and that the retention rate is very high.
Most users don t pay.
Advertising pays the freight for these users. They are an upscale, highly desirable audience for on-screen advertising. In addition, the names constitute a valuable data base that can be sold other services. All this has been accomplished without any substantial advertising. The company has the funds to promote its services, is beginning to do so, and should be able to increase its reach.