Beyond Commerce (OTC BB: BYOC) Talks Sales, Progress, and Innovation

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Beyond Commerce
(OTC BB: BYOC)
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bob
Robert McNulty, CEO

Beyond Commerce, Inc. www.beyondcommerce.com, provides best in class products, services, and solutions by being the low cost provider in its market sector. i-SUPPLY, www.i-SUPPLY.com, offers easy to use, fully customizable E-commerce services, and revenue solutions for any Web site, large or small, and hosts local ads, providing extensive reach for our proprietary advertising partner network platform. LocalAdLink, www.LocalAdLink.com, is a local search directory and advertising network that brings local advertising to geo-targeted consumers. BOOMj, www.BOOMj.com, is the leading niche portal and social networking site for Baby Boomers and Generation Jones.

TRANSCRIPT:

WSR: Good day from Wall Street. This is Juan Costello, Senior Analyst with the Wall Street Reporter. Joining us today is Bob McNulty, CEO of Beyond Commerce. Beyond Commerce trades on the OTC Bulletin Board, their ticker symbol is BYOC and the company is an advertising and e-commerce provider, formerly BoomJ. Thanks for joining us today Bob.

Bob McNulty: Thank you, Juan. I appreciate the opportunity to talk about Beyond Commerce.

WSR: Start off by telling us about how the company is going to integrate SMS text messaging into the market?

Bob McNulty: We are going to set up technology for text messaging to the market, it’s really through out to the customers that can take advantage of text messaging or coupon. So, since we are out with LocalAdLink selling customers in the market, this gives us opportunity to do an add-on sale or transaction for the customer. And through our research, we found that text messaging actually is a very potent force for coupons. In other words, if you send a coupon out, you can usually get a 20% to 30% bump in your revenues nearly from that. So we are going to deploy that and what we are doing within each market, we are creating a network within the network by allowing each of the small businesses within a market — let’s say we are talking about Henderson, Nevada for a second. So let’s say we have 100 to 150 small businesses in Henderson and they sign up for the text messaging and optium program. So, Joe’s Pizza, who would only usually dial into his small base of customers, now has the opportunity to dial into a larger base of maybe those 200 or so businesses. So, we think it’s a winning strategy and we are really going to get this underway in the next 50 to 90 days when we launch it.

WSR: Talk about the company’s three main subsidiaries or platforms; Ad Link and BOOMj, talk about that and some of the applications in the market, and as well as i-SUPPLY?

Bob McNulty: Let me kind of go back just a little bit. When we started the company, we were actually a social network focused on Baby Boomers and Generation Jones business. And then when the advertising markets slowed down about 14, 15 months ago, we started looking at different avenues of driving business or transactions or revenues for the company. Then we started looking at our own e-commerce platform, which is lot like Amazon.com store and started thinking about how could we integrate that into a full phone ad network. So, we developed LocalAdLink as a directory of, our small business directory with a large direct sales force taking those ads and then populating that throughout BOOMj and then throughout i-SUPPLY, which is our e-commerce platform. And we send the e-commerce platform around virally with a widget, so you just copy and paste some code. We have demand right now for around 40,000 to 50,000 websites to launch our i-SUPPLY store into that carries all of our advertising. So it’s a unique strategy and it is working. LocalAdLink last month had over 10 million pageviews, so we are happy with the performance on a very early-stage company. The company is cash flow positive. In the last quarter, we had significant up-tick in our revenues.

WSR: Talk about the value drivers behind the company’s Q1 results announced today, which were particularly strong?

Bob McNulty: I mean what happened as we launched — I think a couple of things are working for us. I think one is the economy is in pretty hard shape right now. So, we provide the opportunity for independent sales reps to make direct commissions of up to 50% with us. So, that opportunity is in the marketplace, so we’ve deployed a huge sales force and they are selling ads every day that go into our system, they get displayed up into our www.localadlink.com site. And then, those ads then get pushed out into Internet through about 180 or so affiliates that we have. So, it’s a very low cost way for a small business owner to get into the marketplace. If you did the same kinds of things that we are doing and you were using SEO or some other techniques that may cost you 2,000 to 3,000 a month as opposed to 199 bucks a month. So, we’re having a great success with it. And the small businesses that we are dealing with like it because most of them don’t have a Web presence. So, we take all the hassle out of that. So we have our business directory for them, when you click on it, has videos, has coupons, pictures, reviews, etcetera. So, it’s like having a mini website inside of our LocalAdLink.

WSR: There was a 25% growth in LocalAdLink’s independent sales force. Talk about some of the other trends in the market, and how well positioned is Beyond Commerce to capitalize on them?

Bob McNulty: I think we are really well positioned. We try to find that niche in the market, so we are not budding heads with all the big guys. So, our marketplace for LocalAdLink in the way we deploy it is really in the small business. And most of our small businesses that we deal with want to get on the net but they are not sophisticated enough and don’t have the time enough to manage that process. So, we’ve been able to give them a great opportunity at a very low cost to get up on the net. So, I think we’ve actually positioned ourselves in the marketplace. Our customer base, our small businesses are less technically advanced as opposed to some of the other people that may advertise on some of the larger ad networks out there.

WSR: What differentiates the company from other players in your sector?

Bob McNulty: I think many things differentiates us. One is our technology and integrating that through our i-SUPPLY, which gives us our own ad network. I think we will deploy within 100,000 websites by sometime in the fall. But I think the biggest difference that we have, we have a direct sales force today of 30,000, 40,000 people that have signed up in the last 120 days. So, we’ve been rapidly putting together a virtual training program to make sure that they are very well trained when they go out to sell the ads, to deploy these ads. So, I think the biggest differentiator really is having this direct sales force with feet on the ground, calling up small businesses, working with those people, loading the ads themselves, so that the small business owner doesn’t have to be labored with doing that themselves.

WSR: You started talking about some of the challenges. Talk a little bit more about some of the challenges that the company faces and your strategies for overcoming them.

Bob McNulty: Like any business that rapidly grows, one challenge is people obviously. We’ve been scurrying to hire some of the best technology people, we’ve built that technology side of our business. We’ve tripled the size almost of our company internally over the last 120 days. So, that’s been a challenge, but we are pretty well ahead of the curve. We have to rapidly get up to speed on our technology side and build out a different array to handle the traffic that we’ve been getting in, and that just got deployed last week. We are seeing great impact on that. So, it’s kind of like a lot of small things that you have to identify in your business and correct, make corrections as you go to deploy a rapid growth business model.

WSR: Talk about the growth, is it more organic or you are looking for M&A activities as a catalyst to continued growth?

Bob McNulty: No. We are not looking for really any M&A activity, it’s going to be all organic growth, principally because what we do is kind of unique. So, we just think we can keep growing this quarter-over-quarter through this year profitably have some, continue to have very rapid growth. And, the other thing that we’ve been contacted on is also the ability to expand internationally because as you know there are small businesses all over the world, so we’ve been contacted to see — expanding into Canada and Australia and different marketplaces.

WSR: Walk us through your background and experience, as well as that of your key management team?

Bob McNulty: We have a very strong management team. The President of our company who takes care of brand management is Wendy Borow-Johnson. She has been in the marketing, advertising space for 25 years. She was with NBC and some of the big name people. She has been with us since day one almost. Mark Noffke, our CFO, has been in Fortune 500 companies, very strong financial background. And then Bo White, recently joined us as Senior Vice President, has a terrific technology and marketing background both. And he is heading up the operations side of our business on a daily basis. We have another individual, Ben Clark who actually runs LocalAdLink for us, who’s got background in marketing and sales and operations. So, we are very well balanced.

Myself, I’ve been in the retail sector for 30-plus years, and technology and Internet space for the last ten or 15 years. But I kind of have watched, since — believe it or not, 1987 is my first look at the Internet, I don’t think they called it the Internet then. So, we’ve got a strong management team, but probably more importantly we’ve got a very strong mid-management team. That’s really critical because we are balanced in technology, we are balanced in marketing, we are balanced in e-commerce, so we are balanced in the financial side of the business when it comes to either corporate finance or reporting or compliance and all those kinds of issues. So, we are pretty strong, we are pretty balanced and we’ve kind of grown just a little bit in front of the wave. We haven’t really got behind it, but we are still right in the front of it a little bit.

WSR: What are the specific objectives have you and the management set for the company over the next 12 to 24 months?

Bob McNulty: Couple of things we think are critical. One is, continuing to hire the right people culturally for our company. Deploying a first-class training program obviously we think is critical, and to keep that program upgraded over the next 12 to 24 months for the field training and also internally setting the expectations in training for internal management and keep them addressed of what’s going on. So, I think it’s, again it’s multifaceted, there is never one silver bullet that makes you win or lose; it’s executing a hundred different disciplines every day.

WSR: Do investors understand the general direction that the company is headed?

Bob McNulty: I think they are starting to, I think that because where we came from and how we morphed that business over in the last eight or nine or ten months. And we do have conference calls with our shareholder base, and try to keep them informed as much as we can, I am talking to the market quite a bit. But I think as this unfolds and deploys and people continually see a rapid growth, I think they will start to understand it a little bit more because it is a little different than what anybody is doing out there from an advertising network and also going after it with direct sales people on the ground after small businesses.

WSR: Joining us today is Bob McNulty, CEO of Beyond Commerce, trading on the OTC Bulletin Board. Ticker symbol is BYOC, currently trading at $1.22 a share. Before we conclude, what are some of the key reasons why investors should consider Beyond Commerce as a good long-term investment opportunity?

Bob McNulty: I think a couple of things. One is the size of market. In the US, it’s around $7 billion to $8 billion for online sales for advertising. So, it’s a very strong marketplace. The part of the market we are into hasn’t really been tapped yet. So, I think those are key indicators that they should look at. I think the other thing is the management team and the mid-management team, the strength of that, how we view our business strategy going forward. And also, I think the flexibility of the team to look at are there issues that we need to change our strategy, in fact it’s along the way, so how flexible are we looking at that. So, I think those are all key indicators. We are always trying to improve our balance sheet and looking for capital, so those are also key ingredients as we move along. But, the company is doing like I said extraordinarily well and we are very pleased with the results we are getting so far.

WSR: We certainly do look forward to continue to track the company’s progress and growth. I want to thank you for updating us today, Bob.

Bob McNulty: Juan, I really appreciate the opportunity and look forward to speaking with you again.

WSR: Thank you.

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11 thoughts on “Beyond Commerce (OTC BB: BYOC) Talks Sales, Progress, and Innovation

  1. Pingback: MediaScream Updates!

  2. Ted Martinez

    It sounds like you are in the right place at the right time.The economy is pretty tight,small businesses and towns are feeling the impact in sales revenues,falling sales taxes the towns need to maintain the inrastructure. Most of local stores can’t afford high advertising fees, the local papers have limited distribution areas.

    With tourist season coming on most scenic towns and stores, hotels,restaraunts, art galleries and antique dealers try to attract more out of town tourists, shoppers as well as real estate companies for retirees and Chamber of Commerces for new businesses.

    This program offers a tremendous opportunity to reach potential customers that would normally be out of reach given the costs of current advertsisng media who are also feeling the advertising budget cuts by their main advertisors

    It seems like an affordable way several groups can advertise and then branch out focusing on their products or services.

  3. Randy Zimmerman

    I think these products give the small business better options than the Yellow pages. The price is more competitive and with no long term contracts, the small business owner can customize the programs to fit their cash flow needs on a quarterly or monthly basis.

  4. Some Guy

    WARNING. From the recently reported 10-K:

    “We currently do not have sufficient funds on hand to fund our anticipated on-going operating expenses. We do not have any bank credit lines. Accordingly, we will have to obtain additional funding in the near future in order to continue our operations.”

  5. Robert Munoz

    Before my life as a professional artist. I spent 40 years in the advertising media business. I sold television air time as well as radio, magazine and newspaper. I used Local ad Link to promote my gallery nationwide selecting specific zip codes.

    I have to say that while I have yet to measure an ROI…this ad campaign appears to be the best media value I’ve ever come across.

    Good Luck

  6. Gary

    I still don’t understand why someone would pay you to purchase google adwords at an inflated price. If you are pooling everyone’s money in hopes that some don’t use their clicks, then aren’t they just paying too much. The other advertising you talk about on your website is non-existent, been checking all weekend. If you pay half the fee to a mlm sales team, then have to make a profit on what’s left, isn’t the actual advertiser paying 3 to 4 times the actual cost. Anyway you do the math, this is a scam, pure and simple. The advertiser gets played. BEWARE!!!

  7. Gerald Wick

    It is very interesting, but I happen to be a registered Brand Builder with LocalAdLink since 2-27-09 and as of today my ad only appears now and then on LocalAdLink. I’m not getting any answers from support even though I have been on numerous conference calls and webinars stating that the business is growing and successful. Highly unlikely unless things change.
    I think the concept is great if they get it operating as proposed.

  8. Steve Garcia

    I am an advertiser and user and seller for http://www.localadlink.com and find this a simple and successful add on to web advertising. Highly affordable and proving to be very valuable for advertisers as they are capturing new customers. All within a business that has only been operating for 4 months.

    My daily business is a full service advertising agency. My first impression of http://www.localadlink.com was based on suspicion of yet another newcomer to the internet advertising environment. After taking a second look I find that this company is real, well founded, and well thought out.

  9. Harvey

    You got that right. For once I was actually in the right place at the right time. You can be too. I can’t remember the last time I opened a phone book to find a local biz. If you are looking for something where do you go? The internet.

    Since I became a Brand Builder and started offering LocalAdLink services it has changed my life.

    Just check it out. http://indianapolis.localadlink.net/home.asp

  10. Bruce

    Beware of this company. McNulty has been involved in some less than “kosher” things in the past. They tout his sale of Shopping.com but he had left the company before its sale:
    Despite the surprise now expressed by McNulty’s partners, his past raises red flags that might have led his supporters to proceed with caution. Three companies he started in the 1980s — All-American SportsClub, Auto Giant and Auto Depot — went bankrupt. Then, in 1994, the Securities and Exchange Commission ruled that McNulty defrauded investors by using the proceeds of securities offerings from three companies he headed to finance the operations of affiliated companies.

    “Five years later, McNulty left the first Web company he founded, Shopping.com, amid an SEC investigation of the manipulation of the company’s stock, which had increased more than 250 percent over a few months. While McNulty escaped blame in the SEC’s initial ruling in 1999 (the underwriter was tagged for the manipulation), the case is still open.”

    This is from an SEC complaint from another venture:
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION

    Litigation Release No. 14696 / October 20, 1995

    Accounting And Auditing Enforcement Release No. 733

    SECURITIES AND EXCHANGE COMMISSION v. ROBERT J. MCNULTY, et al.,
    Civil Action No. 94 Civ.7114 (MBM)

    The Commission announced today that on October 10, 1995, an Order
    was issued against Robert J. McNulty (“McNulty”), the former
    Chairman of the Board of HQ Office Supplies Warehouses, Inc.
    (“HQOS”), HQ Office International, Inc. (“HQOI”), AG Automotive
    Warehouse, Inc. (“Auto Giant”) and Auto Depot, Inc. (“Auto
    Depot”), by the U.S. District Court for the Southern District of
    New York, to which McNulty consented, permanently enjoining him
    from violations of the antifraud, issuer reporting, books and
    records, and beneficial ownership provisions of the federal
    securities laws, and the provision prohibiting misrepresentations
    to auditors. In a complaint filed by the Commission on September
    30, 1994, McNulty was charged with orchestrating a complex scheme
    to defraud investors by using the proceeds of securities
    offerings by HQOS, HQOI, Auto Giant and Auto Depot to finance the
    operations of affiliated companies and the companies’ underwriter
    and market maker, Global America, Inc., rather than for the
    stated purpose of funding the issuers’ operations.

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