Danny Sullivan Questions Our JupiterResearch Sale
Danny devoted a blog entry questioning the synergy between JupiterResearch, the SES shows and the ClickZ Network (all now sold by Jupitermedia).
Danny indicated that from his perspective he could not see the synergy(ies) here. My answer is that Danny is great at what he does, but his focus on Search and his role as a consultant and not a business executive is why Danny did not see the synergies.
Let me say that I have the deepest regard and respect for Danny and mention his post only because it shows that Danny should never run a company (and why should he as makes more money than most CEOs throughout the world?!).
Danny was never privy to the inner workings of Jupitermedia. Therefore he would not know that the ad links that JupiterResearch had on the ClickZ Web sites brought in numerous leads to the JR sales team. This connection was invaluable and one of the several reasons we were able to turn around JR. Dozens of solid sales leads came in monthly from these links. These leads could never have been found from cold calling. Also these links led to numerous sales of one off JR research reports -a very lucrative business. Similarly, dozens of leads came to JR from its participation in the SES trade shows. The one day seminar that JR ran on the first day of each USA show attracted nearly 400 attendees. At the overseas shows JR would run a late day reception and once again many solid sales leads came the way of JR. When one considers that the average JR client paid close to $35,000 per year, one can start to understand that the relationship between SES, ClickZ and JR was incredibly valuable and lucrative for Jupitermedia.
Danny's comment that if this link was so valuable then why did Incisive Media not also buy JR when it was making the SES purchase? --Danny feels Incisive's decision not to buy JR illustrated that there could be no value between JR and SES (and ClickZ). Such a comment again demonstrates why Danny should remain the God he is in doing editorial and consulting work. I cannot and will not answer for Incisive, but I would suggest that budgetary considerations were at play not to mention that at the time we sold SES, JR had not been profitable (the profits started to come by the end of the year in which SES was sold).
No need to comment on any other issues from Danny's post because I think readers get the idea of why JR and SES (as well as ClickZ) had strong and invaluable financial synergies. In the end, Danny helped Jupitermedia and Jupitermedia helped Danny to do well. Danny is entitled to make comments about the deal, but he could not have been more wrong in his conclusions.
Jupitermedia CEO Alan Meckler
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