Comments on: ReachLocal Grossed $147 Million in ’08, Projects ’09 Growth http://staging.blog.biakelsey.com/index.php/2009/08/14/reachlocal-grossed-147-million-in-2008-sees-higher-growth-for-09/ LOCAL MEDIA WATCH. The Nexus of All Things Local Mon, 01 Jun 2015 22:23:47 +0000 hourly 1 https://wordpress.org/?v=4.2.39 By: Insider http://staging.blog.biakelsey.com/index.php/2009/08/14/reachlocal-grossed-147-million-in-2008-sees-higher-growth-for-09/comment-page-1/#comment-482614 Sun, 20 Nov 2011 14:19:59 +0000 http://blog.kelseygroup.com/index.php/2009/08/14/reachlocal-grossed-147-million-in-2008-sees-higher-growth-for-09/#comment-482614 You have the right idea… Redo your calculation with the correct figures, here they are….

Gross Margin 49.7%
sallary: global average 58k per/rep
commission: global avg: between 10% here in the USA and 6-7% globally

Then factor in about 5-10 million in executive salaries each year at least.

]]> By: A Competitor http://staging.blog.biakelsey.com/index.php/2009/08/14/reachlocal-grossed-147-million-in-2008-sees-higher-growth-for-09/comment-page-1/#comment-375389 Mon, 17 Aug 2009 06:49:28 +0000 http://blog.kelseygroup.com/index.php/2009/08/14/reachlocal-grossed-147-million-in-2008-sees-higher-growth-for-09/#comment-375389 If you do the math, you’ll see that they are very upside down in their cost structure.

Imagine if the average salaries are $50k/year for these 800 people. A fair and relatively low estimate.

Also, imagine that they pay out 5% commissions to their sales people of the gross revenue. I’ve heard that this number is closer to 7-11%, but let’s be conservative and say 5%.

Let’s also be conservative and say that they earn 30% gross margin on each customer. The other 70% would go to Google/Yahoo/MSN.

That being the case, here’s how the numbers sort out:

Total Revenue $147,000,000
Number of Employees 800
Avg Annual Salary $50,000
Total Salaries $40,000,000
Commissions 5% of revenue
Commissions (amount) $7,350,000
Margin 30%
Gross Margin (amount) $44,100,000
Overhead 25% of Salaries
Total Employee Burden $10,000,000
Total Expenses $57,350,000
Operating Profit/Loss -$13,250,000

Am I wrong?

]]> By: A Marketer http://staging.blog.biakelsey.com/index.php/2009/08/14/reachlocal-grossed-147-million-in-2008-sees-higher-growth-for-09/comment-page-1/#comment-375345 Sun, 16 Aug 2009 20:44:52 +0000 http://blog.kelseygroup.com/index.php/2009/08/14/reachlocal-grossed-147-million-in-2008-sees-higher-growth-for-09/#comment-375345 Lots of information I have encountered about ReachLocal is inaccurate. I sought out a rep to learn how they work, he’s been there 2+ years. Been impressed with service and results ever since.

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