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THE HEAD OF ITS CLASSY CLASS
MostChoice.com No. 1 among technology firms in
Georgia with five-year revenue growth of 11,107%
By Tom Walker
The Atlanta Journal-Constitution
12/05/06 "I can't close these leads, John. No
one can. It's a joke. John, look, just give me a
hot lead. Just give me two of the
premium leads."
— Jack Lemmon as Shelly Levene in "Glengarry
Glen Ross"
What Shelly Levene needed was
MostChoice.com. He would have gotten more
leads than he could handle. |
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Providing good leads is what MostChoice.com is all about, explained President and Chief Executive Martin Fleischmann, 40. That's especially the case for life, health and other insurance policies, although the company also offers leads in home mortgages, real estate and investments such as annuities.
(article continued below) |
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(continued from above)
And by posting five-year revenue growth of 11,107 percent through 2005, MostChoice.com is the top-ranked company on the Deloitte Technology Fast 50, identified by Deloitte & Touche LLP as the fastest-growing technology companies with headquarters in Georgia.
As a group, the Tech 50 companies reflect the strong comeback of the technology sector since the dot.com disaster that followed the stock market collapse in 2000.
These companies "have shown the strength, vision and tenacity to succeed in today's very competitive technology environment," said Andy Harrs, Southeast regional manager for Deloitte's technology, media and telecommunications practice.
Although tech stocks got off to a weak start this year, the tech-weighted Nasdaq composite index has moved well ahead of the blue chips in the current rally that started from the market's midsummer lows.
"The technology market continues to perform well, and innovation is driving the development of new companies in this sector," said Harr. "These are companies with a lot of potential."
The Tech 50 also reflect what Farr called a "huge blurring" of traditional boundaries between technology, media and telecommunications —- the result of a "convergence" of multiple disciplines within the same company.
"People are having to consider new revenue models, and new kinds of clients as part of the new challenges they are dealing with on a daily basis," said Harr.
Thirty-one of the Tech 50 companies are publicly traded, six with market values (share price times shares outstanding) of $1 billion or better: Arris Group, CheckFree, ChoicePoint, Equifax, Immucor and Per-Se Technologies. Several of the public companies, including Per-Se Technologies, have been acquired or are in the process of merging.
Different businesses
These companies are varied in what they do. Software is the single biggest category, with 18 companies, followed by Internet and communications/networking with seven each. Five companies are in one or another facet of the computer business: networking, services, equipment and hardware. Others range from biotechnology, medical equipment, broadband and cable, media and business services.
To be considered for the Deloitte list, the Georgia-based companies had to have operating revenue of at least $50,000 in 2001 and at least $5 million in 2005.
Privately owned MostChoice.com is what CEO Fleischmann calls "a pure Internet company."
The company, which Fleischmann founded with partner and Chairman Michael Levy in 1999, did not experience its five-year, 11,000-plus percent revenue growth easily at first, Fleischmann explained. A flawed business model was an initial handicap, as were the 2001 recession and the evaporation of the venture capital needed to fund growth.
The company eventually got its Internet act together and earned a place on various "top" and "fast-growth" lists in addition to the Deloitte Fast 50. MostChoice.com ranked 80th on this year's Inc. 500 list of the fastest-growing U.S. small companies.
In partnership with the Google and Yahoo search engines, MostChoice.com in effect brings the consumer who needs an insurance policy to the attention of an insurance agent in MostChoice.com's agent network. The agent takes this "lead" and contacts the consumer with information related to specific needs.
The better the lead, of course, the more likely the agent-customer contact will pay off.
Poor Shelly Levene's problem was that he worked for a broker (in his case, real estate) who only gave him bad leads, while others got better ones.
The insight that quality business leads could be handled via the Internet is what led Fleischmann into the business to begin with, although at the time that decision was what he calls the biggest gamble of his career.
"I left Autotrader.com and was headed for ApartmentGuide.com in late 1999, the go-go era, in my early 30s," Fleischmann explains. "Instead of joining ApartmentGuide, I joined Mike Levy, who had a Web site. We realized early that insurance and other transactions were going off the Internet."
Levy has concentrated on the technical side of the business and Fleischmann the marketing and operating side.
Early kinks worked out
Once the kinks were worked out of the early business model, the company went national in marketing in 2002 and watched revenue double in two months, double again in three months and ultimately grow eight-fold in one year, said Fleischmann.
One of the bumps in the road for MostChoice.com —- and other Internet companies —- has been "click fraud," a scam in which phony Internet operators take advantage of the pay-by-the-click system to steal from legitimate companies such as MostChoice.com.
Fleischmann and MostChoice.com engaged in behind-the-scenes work over the past three years to identify and correct click fraud, which BusinessWeek magazine spotlighted in a cover story based on MostChoice.com's experience.
Looking ahead, can investors look forward to a MostChoice.com stock offering anytime soon?
Not likely, says Fleischmann. "We're in a hot sector. We don't need to go public," he says.
| TOP 10 OF THE DELOITTE TECHNOLOGY FAST 50 |
| Company |
Location |
Ownership |
Sector |
Growth rate |
| 1. MostChoice.com |
Atlanta |
Private |
Internet |
11,107% |
| 2. Cbeyond |
Atlanta |
Public |
Comm./Networking |
10,956% |
| 3. Greenway Medical Technologies |
Carrollton |
Private |
Software |
7,379% |
| 4. SPI Dynamics |
Atlanta |
Private |
Software |
2,789% |
| 5. Agentek |
Alpharetta |
Private |
Software |
2,228% |
| 6. SecureWorks |
Atlanta |
Private |
Comm./networking |
1,548% |
| 7. TurboChef |
Atlanta |
Public |
Diversified machinery |
1,518% |
| 8. Procuri |
Atlanta |
Private |
Software |
1,062% |
| 9. KnowledgeStorm |
Alpharetta |
Private |
Internet |
832% |
| 10. Harbor Payments |
Atlanta |
Private |
Software |
712% |
| Source: Deloitte & Touche LLP |
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