So the short story is, we have a difficult business to enter regardless of scale. So Tenjin I'll turn it back over to you.
Tenjin Wong – JPMorgan
That's a good summary. So maybe just start off with your top line target of 10%. How do you sort of build up to that, obviously the easy metrics would be to look at transactions and rate per trend. Can you build us up to the 10% there?
Eric DeyYes, our targeting goal is to grow our businesses organically around 10% and we do that simplistically by investing in sales and marketing. In 2011 as an example, we spent about $34 million in sales and marketing around the world and we know that given the level of productivity that we get out of our sales force at that level of investment, will give us enough new sales volume to offset the amount of attrition and to grow our transaction volumes in the 3 to 4% range. At the same time, we also grew per transaction and we do that simplistically in a couple ways, one is just mix and what I mean by that is today we process about 250 million transactions and we earn revenue per transaction on a large scale from as low as about $0.10 a transaction to as high as $10 a transaction. So you can guess where we're investing our sales and marketing dollars. It's certainly not growing transactions at the lower end of the scale, so we're investing in the higher end. So effectively to the extent we're successful in growing transaction volume in the higher end of the scale, we simplistically also are growing revenue per transaction. And we're also upselling productions and services to our existing customer base. So we get more revenue out of the same transaction that we had in the past. And that's effectively we kind of do it.Read the rest of this transcript for free on seekingalpha.com
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