QuoteMedia, Inc. (QMCI.OB), a financial networking community offering a host of real time market data and portfolio services, just announced a two-year agreement to provide streaming real-time data, portfolio management, along with historical financial market data and research to Zecco Trading, which is a wholly owned subsidiary of Zecco Holdings. Zecco is a fast growing online investing community that made lots of media waves by offering its clients free stock trading.
Under the terms of this agreement, QuoteMedia will be the provider of a wide array of market data, portfolio management, stock screening, and charting, for a period of two years, allowing Zecco clients access to the broadest collection of market information yet available. While this is indeed good news, it’s not impossible to imagine that some investors have missed the importance of this particular agreement.
Zecco has made quite a splash recently in the trading world, offering their clients free trading and getting a lion’s share of publicity over it. However, QuoteMedia reaps the benefits of two important items here. First is the monetary agreement between Zecco and QuoteMedia, and that’s what most investors will focus on. But one may beg to differ that this is actually the most important aspect of this pact. Certainly it’s nice to get paid, but because Zecco does generate such large media exposure over their unique business model, Quotemedia gets to ride the wave of media attention and marketing, without spending any money.
The aspect of growth is directly tied to the number of people that are exposed to your business. For lack of a better example, the old adage of “if they don’t know you exist, they can’t buy your product” comes to mind. With this particular agreement, Quotemedia will reap the benefit of having much wider market exposure, by simply delivering their products to Zecco’s clients.
Any time a company can get free publicity and exposure, while at the same time being compensated for providing its services, it is doing “something right” and QuoteMedia is doing it all right with this latest business pact. It’s not a stretch of the imagination to think that in virtually no time, many thousands more people will have been exposed to QuoteMedia’s wide array of products, and services, and this is what growth is all about. Exposure at Zecco will lead to more agreements, supply pacts and revenue from other financial institutions. It’s certainly good business and something to keep an eye on.
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