He has increased the remaining staff's budgeting responsibility, based bonuses on meeting or beating Wall Street's profit projections, re-priced stock options to compensate for the sinking stock price, and overhauled the company's rebate program. The online prospecting service and other Internet-related products are such ideas, Mr. Kinnear says. Such companies also pay software suppliers half of their money upfront. Investing its scarce resources in selling through warehouse clubs or pursuing international sales will doom the company, Mr. Kinnear says. Lucy Rosen Build brand identity, says Ms. Rosen, president of Business Development Group, a Garden City, N.Y., consulting firm specializing in business development and marketing.
Visibility is important.
ClickAction risks diluting its identity through the pursuit of numerous new strategies, such as the online prospecting service, Ms. Rosen says. It seems like they're throwing things against a wall until something sticks. Such a response is common among small firms confronted suddenly with a decline in their main business. Moreover, Ms. Rosen doubts ClickAction has the funding to expand into new areas. She also questions whether it has the time.