THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700


Date: Wed, 10 Oct 2001 00:40:47 -0700

03 00050 61 01101001



Mr. Matt Conover
mattc@silcon.com
Conover Consulting
Street address
City, WA Zip

Subject:   Business Planning and Marketing for Funding

Dear Matt,

As stated before, I admire your energy and willing hand evidenced by your letter today.

Good perception picking up on the "lottery" issue.

A report published by the US Army Corps of Engineers dated October 7, 1997 shows using SDS for Communication Metrics produced cost savings in the range of (ROI) 10:1, which may address the issue in your letter today about quantifying the value proposition customers can expect from using SDS. Reducing cost and generating revenue at the rate of 10:1 reflects strong cost effectiveness.

That you were unaware of this evidence, supports your larger point that a good marketing manager would have this critical advantage of SDS front-and-center on everyone's mind.

In time of war, recession, falling productivity, earnings and stock prices, ROI of 10:1 from adding intelligence to management is attractive? Many people people say, however, they cannot afford to save time and money. They say there is no budget for intelligence, that it is overkill, despite people being killed for lack of intelligence.

So, there is a dilemma to deal with, grounded in the fact that despite reports, people have no real belief that intelligence saves money, because it is completely beyond their direct experience. It is not brilliant, but it is the challenge of launching a new market. Of course once people discover savings of 10:1, the market will explode into a proverbial "killer application" scenario. It is this "discovery" phase we need to work through. That is where the marketing genius needs focus.

If time permits, you might comment on the record for September 24, 2001 discussing what makes SDS unique, and a disruptive technology that requires the focused campaign you propose.

If you know of anyone who wants to contribute, there is an opportunity available.

Two big things need to be done (1) expand the base of people using SDS, so we grow the presence on the Internet, and demonstrate more than one person can do Com Metrics, (2) take assignments on contingent basis that increase the record proving cost savings. Both of these expand exposure of benefits that are self-evident on the Internet, and so overwhelm ability of people to ignore opportunity.

Thanks.

Sincerely,

THE WELCH COMPANY



Rod Welch
rowelch@attglobal.net