DISQUS

VentureBeat: Jingle gets $30M for free directory assistance

  • Adam · 3 years ago
    1-800-411-Save is a good one in the same space (http://www.1800411save.com/). What is Free 411 doing with all of that money???
  • Hugo · 3 years ago
    Jingle has the potential to be one of the bigger flameouts in recent memory. This is a NEGATIVE margin business, and those red numbers seem to keep getting bigger. Given their current call volume and lack of advertisers (1-800-Flowers is a reference account? Big trouble!), this extra $30 million may not fund the business for twelve months.

    Matt, this is one for you to watch closely.
  • will · 3 years ago
    Hugo,

    Not completely true, its a negative margin business right now for Jingle, but I'm sure they are probaly 70% to the critical mass needed to break even. Goldman's involvement in the deal means that the financial model makes sense (and is "projectable") and Goldman want in on the IPO/M&A fees. . . at $30M investment, the post money is probably above $120M . . . given that M&A's might no be much more than $250M, I suspect they are doing better than you think . . . I doubt GS wants to wait more than 12month for an exit these days after getting burned in the dot-com days on all these mid-stage deals.

    My question is how is tellme playing in this space (if at all). . . probably powering RBOC's solutions with complete automation.

    I do find it interesting that sometimes I call jingle and I get a live agent and sometimes I get an IVR.
  • Matt Marshall · 3 years ago
    Folks, just updated with comments from Garrick, which explain why he needs to raise so much cash, and in part answers the question about getting that critical mass. Looks like he's almost there.
  • pwb · 3 years ago
    Count me in the naysayers. Not because it's a bad idea (it's a decent idea) but because that kind of valuation will force them to do stoopid things. That they think they need to get that big before advertisers considers them indicates they have no understanding of AdSense and local advertising.
  • kgg · 3 years ago
    Call volume is not a determinant to sales: the quality of sales model is. Inventory of 10,000 calls per day can be sold. People buy if they are sold, that’s the bottom line. For every product there is a fixed conversion rate: so hypothetically if all businesses are contacted there is at least 3% conversion rate and that’s a lot of money. Comparably, free DA, in addition to capitalizing on live leads, can reap same profits for ads comparable to radio ads.
  • kgg · 3 years ago
    Vanity numbers, due to being free and easy to recall actually make the market. Research analysis suggests that vanity numbers for this business model will magnify the market by, conservative estimate, a multiple of 3X – That’s 25B in annual ad profits. Carriers should not panic, since at this point they likely lost way less than 1% of the DA business line.
  • Eric Jackson · 3 years ago
    Look at the backgrounds of the managers and investors. Josh Kopelman and Chip Hazard are rock stars. These guys lead the space and will take substantial share from the big incumbents.

    Good luck,

    Eric

    http://breakoutperformance.blogspot.com
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  • phillip jackson · 1 year ago
    hey guys.... if you are really after free 411 that does business as well as residential numbers.. try this... dial 1-800-411 7283....it works!!!! fast and friendly operators..go ahead!!! you have nothing to lose... :-)
  • Kevin Meed · 1 year ago
    I'd like to thank everyone involved in giving us chance to save from our directory assistance expense.I just learned about this 1800 411 save and its real.I can instantly get the information I need from their friendly and efficient operator at no cost..I just only hope people are aware of this fantastic deal.Everyone should try this.
  • phil2009 · 1 year ago
    I agree with Kevin. I love 1-800-411SAVE! It's back and with the help of live people (not computers!), you get all the needed listings!
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