Big Un Limited (ASX:BIG) announced its first sales distribution license agreement with a US firm, DNA Behaviour International Resources (DNA).
The agreement for sales distribution is valued at $500,000, which provides DNA an exclusive license to sell BRTV video products in the US. The valuation represents a license fee, and a revenue share agreement which will be implemented on successful sales and a number of key performance indicators. The fee will be paid over a 10 month period at $50,000 per month.
DNA is an international business operator with a major portion of its customer base located in New York City. DNA provides organisations with a single cloud based people analytics technology platform to deliver behavioural intelligence solutions for enhanced marketing, service delivery and talent management. DNA has an experience of 14 years and has business presence in over 120 countries.
This agreement supports the company’s objective of expanding its presence in New York and San Francisco. The sales distribution license agreement is expected to add minimum 5,000 new SME members to its current total of over 13,000.
Big also entered into a sales distribution agreement with CDM Direct Communication Services in June 2015. This agreement focuses on increasing sales growth while reducing the company’s cost of acquisition for SME customers.
Hugh Massie, CEO of DNA commented on the agreement: “The holistic video communication ecosystem provided by Big Review TV is something that really excited us here at DNA. The opportunity to partner with BIG at this early stage of their global expansion and assist them in leveraging their first mover advantage amongst SME’s in the US is an exciting opportunity, which we expect to deliver commercially.”
Mr. Brandon Evertz, Executive Director, commented on Big’s business operations and agreement with CDM: “We have implemented a scalable business model, which we’ve proven within Australia. Local business knowledge and sales capabilities play an important role, and our partnership with CDM Services has shown this. The sale of distribution licenses to local operators who share our passion and vision is a strategy that is not only proven, but makes perfect sense as it reduces cost and risk factors as we expand overseas. It also provides the company with an additional revenue stream.”
BIG last traded at $0.25 as of 10:30 AM (AEDT) and is up 13% since Wise-Owl's recommendation.