Glad you agree, which confirms where these thoughts came from.

After being in the electrical trade for 37 years, working for manufacturers and wholesalers of electrical components as well as assembled items, the healthiest and most profitable division was always the OEM group.

Just like DM does an investment of upfront money for a contingency client, a seller of components has upfront costs to sell your product over the competition by becoming specified, then once the ball gets rolling, the orders repeat and the effort to support the business is next to nil. Now that the component volume increases item by item, the cost per unit is reduced. These same components are used internally for the assembled products. So, you have the OEM Group subsidizing the Assembly Division, by reducing the cost internally between divisions. A strong OEM base is the envy of all manufactures who compete in both the component and assembled product arena.

This DM contingency strategy is a win win internally, when royalty deals are part of settlements. The more they negotiate year after year, the more this part of the business model can grow. As I said, opportunity for exponential growth.

The two in this effect, and being in totally different fields, is identical at the end of the day.

Go get em DM!!!