PointRoll CEO Rob Gatto sent the following memo early this morning to sales staff at Gannett's digital ad services subsidiary. The memo comes amid recent reader speculation about the unit's declining fortunes. It's worth noting to Gannett Blog's company-wide audience that PointRoll in recent years has contributed a disproportionately large amount to Gannett's earnings. That means its future is especially important to all employees and shareholders.
From: "Gatto, Rob"
Date: April 12, 2012 3:01:49 AM EDT
To: PTR-Sales Department List
Subject: Opportunity
I [am] sending this note out to address and discuss the opportunity you as sales reps have at PointRoll. Recently, I have heard much discussion about the struggles we have on the sales side:
- Agencies want a single ad server
- Money is moving to social & other areas we don't have solutions for
- We don't have any new products to sell
- We are experiencing pricing decreases
- Certain agencies are working against us
- It's impossible to sell against Google they have everything
- My quota is too high
I spend a fair amount of time with contacts in the investment community always looking for great new companies to partner with, trends and other happenings in our industry. Let me share some sobering facts:
- PointRoll did $79m in revenue last year (less than $1m of which was video and mobile)
- The Plan for this year is $70m ….. a plan that should be easily attainable and opportunity for everyone to blow their numbers away
- Spongecell, Flash Talking & Pictela combined added over $12m in new revenue last year and expect to match or exceed that number in 2012
- Video ad serving is growing at a rapid +50% growth rate and offers millions in potential growth
 |
| Gatto |
So why is PointRoll shrinking? It's not because we lack new products. Sure new products would add additional revenue streams, BUT WE ARE FLAT GETTING OUR BUTTS KICKED DAY AFTER DAY IN THE TRENCHES ON RICH MEDIA AND FLASH ADVANCED DEALS. Low-end competitors don't seem to have the same issues we have with agencies who want "a single ad server." This is all about focus, strong territory coverage and competing with these players. If we cut into 1/2 the growth of the 3 companies listed above we would BLOW AWAY OUR NUMBERS. That is before you take the into account the in-stream video opportunity.
PointRoll can return to growth if we simply:
- Execute and compete better in the display ad space
- Aggressively pursue the in-stream video space
I will ensure we fix the mobile piece so that can be added in, but I need each and every one of you to look in the mirror and ask yourself: Am I covering every account in my territory? Am I prepared to fight, fight and fight some more against these competitors? Am I getting the lion's share of display ads run in my territory? It pains me to see Spongecell and FlashTalking ads run on
USAToday.com … They didn't get there because our parent sold them. They got there because WE GOT BEAT AT THE ADVERTISER …. OR IN SOME CASES DIDN'T EVEN KNOW THE DEAL WAS GOING DOWN.
The time is now. DG Fast Channel is in chaos. We have a layup for a revenue plan and we have an industry with plenty of growth left in it. We are off to a good start, but there is so much more that can be driven in the next 8 months. What we need is your focus, territory coverage and fight to blow these numbers away. I am embarrassed when I see the growth these smaller players are driving at our expense … and I hope you are too. They are eating your lunch, taking your commissions and snickering as they do it.
Let's go grab this revenue and make it ours again!!
Rob
Asses kicked is an UNDERSTATEMENT. Pointroll is sinking FAST.
ReplyDeleteTime for Sarah and Rob to go! Failed leadership!
Rich media is growing faster than any part of the display world and this idiot says that we have all the products we need.
He is now pointing fingers at SALES! It seems like he is setting up SARAH RIPMASTER to take the fall.
Who are his contacts in the "investment community"? Come on Rob, don't try and play Mr. Big Guy.
ReplyDeleteYou are a no body in this industry riding on the coattail of others.
I am not an English scholar, but this guy cannot communicate. He sounds kind of "stupid" with his note.
ReplyDeleteI do not work at Pointroll, but I hear through the grapevine that other parts of Gannet think they are a bunch of arrogant, digital "has-beens".
If this is the CEO of a digital company who spends time with the "investment community", then this company is definitely in trouble.
The BIG question is "why is Gracia letting this happen to this company"? As a shareholder, I blame Gracia Martore and David Payne.
Hey Rob,
ReplyDeleteHow about you spend sometime with your employees or clients, instead of wasting time trying to sell Pointroll to your friends in the "investment community".
Stop the bullshitting already, no one believes you anymore.
I can picture it now. Sarah, Rob, Sandy and Cat all in their rental car coming back from a blistering meeting with Gracia yesterday. Stuck in traffic.
ReplyDeleteRob asks Cat "what do you think I should say to employees", Cat responds, "Well, we really have the right strategy and we hav the products...It is all sales fault"
Rob responds, "You are right, we haven't blamed sales yet have we".
Sarah chirps "Oh yes Rob, whatever you say. I will tell Tria and Dea that they are both doing a bad job and then you can send a note blaming them".
"Sandy, what do you think?" asks Cat.
"Huh?" mumbles Sandy
"Rob, make sure you use the new logo when you send the note out, i worked really hard on that" quipped Cat.
"Hey, I have an idea, why don't we blame the new logo for a decline in sales?"
I'll add a little context:
ReplyDeleteGatto says PointRoll's had $79 million in revenue last year. That is compared to Gannett's companywide advertising revenue of $2.5 billion
That $79 million is down from about $90 million in 2010. That approximately 10% decline is higher than the Gannett-wide 7.4% decline in advertising.
Also, PointRoll's EBITA has run as high as 50% in recent years. Applied to that $79M, PointRoll's would have been about $40 million last year.
If I'm reading the 2011 10-K correctly, Gannett's EBITA fell $200 million from 2010.
Bottom line: PointRoll has contributed a disproportionately high share of GCI's earnings, so its future is especially important to everyone in the company.
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ReplyDeleteRob,
ReplyDeleteDo you think your failure at selling and making your numbers is due to your privacy breach? Ever think your clients actually do not trust YOU. Ever think what your employees say about you and Sarah behind your backs?
Maybe you and your leadership should look in the mirro and ask yourself, who failed this company. Your answer is in the mirror my friend.
Our plan for this year is $70 million" of which $40 million is supposed to come from the last three months of the year.
ReplyDeleteThat will never happen. We will do maybe $60 million this year.
This is probably a dumb question, but did last year's number ($79MM) include shoplocal? And if so how much did shoplocal contribute to that $79 MM?
ReplyDelete10:58 Good question. I should point out that my figures for 2010 do NOT include Shop Local; they are for PointRoll alone.
ReplyDeleteIf Gatto's figures include Shop Local, then the unit's financial situation has worsened all the more.
Does Gatto report to Martore? Payne? Murcko?
ReplyDeleteWay to go Jim!!!! You are on board here, love it!!! Robb's email's has exposed him as a leader who is not strategic, forward thinking or a game changer. His message comes across as defensive and reactionary in light of yesterday's meeting with Gannett. He is placing blame on Sales and setting up Sarah as the fall-guy.
ReplyDeleteThe problem is a bit deeper than what Robb portays, where is ROBB's strategy in this? What is ROBB's gameplan? There is none.
His email is embarrasing, makes him come across as a manager and not a leader. Ship is sinking and he is the Captain on the Italian Cruiseship who is not going down with it.
He is a fraud, thanks again Jim for exposing him.
With barely any costs, is PoinTroll's profit margin through the roof?
ReplyDeleteI mean, all you guys do is take agency work and put it on a server, right? No paper cost, no delivery costs, no broadcast license or on air talent, no content to pay for, just a couple of IT people, sales, and the overhead positions?
You have no idea what we do here, obviously there is a bit more involved in the process.
ReplyDeleteYou sound like upper management.
4/12/2012 11:44 AM - What you describe is pretty much what a lot of PointRoll's competitors do, since they offload as much work as possible to the client. This is how they are able to "eat" the lunch of PointRoll's sales people. PointRoll should have a better self-service option, that would make them more competitive and more profitable.
ReplyDeleteGatto reports to Payne David Payne has only visited Pointroll ONCE.
ReplyDeleteMartore only visited ONCE too.
There is a bigger problem than just Rob Gato and Sarah Ripmaster. No one at Gannett even knows what Pointroll does. No one is watching over these children.
This guy should be embarrassed by this note. What an act of desperation. I can't imagine what Pointroll's competitors are thinking right now as they read this note.
ReplyDeleteIf I worked at any competitor, I would send this note to all of Pintroll's clients and show them how desperate Pointroll is. I would show them how many clients are leaving Pointroll.
This is great food for the competitors.
If Rob thinks he is helping his sales team by pointing fingers at them and rallying them with this note, then he truly is a rookie.
This email has already been forwarded to former Pointrollers and to some of our clients. Its important that they understand the ineptness and badgering that is being down by Machine Gun Gatto and Lucky Ripmaster.
ReplyDeleteRobb sealed his own fate today by sending that email, checkmate my friend.
I am not in sales here at Pointroll, but I hear the sales people are waiting for Sarah Ripmaster to stick up for them and send a note back to Rob Gatto explaining that it is our shitty operations, illegal privacy breach, poor product and marketing strategy and severe turnover across the company that is ruining this company.
ReplyDeleteIt all comes back to leadership.
Will Sarah stand up for her sales team?
Will she just fold and bend to accomodate Rob since Rob promised her a pot of gold from Gannett.
Seriously, Pointroll who are going going to blame next?
"If we cut into 1/2 the growth of the 3 companies listed above we would BLOW AWAY OUR NUMBERS."
ReplyDeleteAim high Rob...Aim high!
You want HALF of THREE SHITTY competitors to help BLOW AWAY YOUR NUMBERS?????
How fucked up is that?
Ok, someone help me out for a second...
ReplyDeleteLast year they did $79mm in revenue. That is a fact.
The economy has been doing better, Advertisers are spending more money. Comps in the industry show that even email vendors are seeing big increases in marketing.
Then...
How is it that someone at Gannett (Gracia???) approved a 2012 revenue budget of $70mm (or 11.4% DECLINE)?
Seriously, that is worse than the newspapers and USA Today?
Am I missing something?
Because digital is a dinosaur legacy medium, we need to expect decreasing revenue and focus our energies on the wave of the future, print journalism.
ReplyDeleteWait a minute. Strike that. Reverse it.
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ReplyDeleteThis note pales in comparison to the nastygrams sent to the newsroom of the GCI paper I used to work at by its narcissistic overlord.
ReplyDeleteIf PR income is correlated to clicks on Gannett properties, they are in deep chit. I'm hearing pageviews and visitors are tracking down as more sites go to the paywall scheme.
ReplyDelete1:34 PM - You are clueless PointRoll serves ads on practically every publisher site out there and through the google adsense network, they power a good percentage of all ads on the web.
ReplyDeleteNow as for "How is it that someone at Gannett (Gracia???) approved a 2012 revenue budget of $70mm (or 11.4% DECLINE)?" This is because ShopLocal must have been included in the $79MM that PointRoll made last year and they are no longer part of the overall PointRoll Revenue number. So I am guessing that the $70MM expected this year is something like a 5 to 7% increase over last year.
PointRoll sales people simply don't know how to sell. Do we want to name the multiple sales people that have simply taken orders of clients that were established by their competitors (the real sales people who built PR) who are now crushing them day in and day out.
ReplyDeleteHeck. If you spoke to most of them they don't even know how the company functions or what the product even is.
Now everyone is shocked these people are getting run out of town.
Thats what happens when you reap the benefits of other peoples hard work. Eventually it catches up to you.
These sales people don't stand a chance against the competition. The competition built PR, they know the business.
Rob "The Bat Boy" Gatto
Has a great ring to it.
Clown
They need to dangle a fancy cruise in front of the sales force to motivate them.
ReplyDeleteReminds me of Glengarry Glen Ross !
ReplyDelete"Blake: These are the new leads. These are the Glengarry leads. And to you they're gold, and you don't get them. Why? Because to give them to you would be throwing them away. They're for closers.
"Blake: We're adding a little something to this month's sales contest. As you all know, first prize is a Cadillac Eldorado. Anybody want to see second prize?
Blake: Second prize is a set of steak knives.
Third prize is you're fired.
Typical Gannett "leadership." I know 4 or 5 car dealerships in New Jersey where this guy would fit right in.
ReplyDeleteI worked with Pointroll on a recent campaign and can you that if they handle things in general the way they handled my campaign, they are so f*cked. My experience was terrible.
ReplyDeletesome good points from 11:55AM in the April 9-15 Your News & Comments
ReplyDeleteAnonymous said...
"For all you pointrollers, this type of competitive intel does not belong on this blog. No matter how much you might hate pointroll, disclosing this on the internet for all to see is ethically wrong. I have seen very little business ethics in digital firms (including Pointroll's founder). Google, Facebook, all digital execs lack a basic business ethics meter.
One way to kill a company is to leak out competitive information. Jim, you seem to print anything and I'm not sure that serves the greater good of anyone.
I read the blog. I find it of value. But there is a line.These postings will hurt all employees...not just the incompetent executives.
Think about your fellow workers. Yes, hold the executives accountable. But think about what you post and how if affects employees."
4/12/2012 11:55 AM
I just worked with the PointRoll operations team on a campaign. WOW. They are awful. Whoever runs that group must be just like this Gatto guy. Were taking our business to someone else. I recommend you do the same.
ReplyDeleteGatto doesn't have the first clue how to run a company, he is a complete joke. His "partnership" with AK was a total farce.
ReplyDelete200k a month we were paying them, for what? Don't get me started on the 401k "switch", another one of Robb's partnerships.
People in this office were laughing at Gatto after he left KOP this week, nobody values his point of view and the whole company knows via the blog that he is a sham.
His "non town hall" was to only to benefit himself because he didn't want to answer to the masses.
Employees are well informed in this day and age, we are no longer fooled by him.
After crushing his staff for 6 paragraphs, I love the way he ends:
ReplyDelete"Let's go grab this revenue and make it ours again!!"
Gee, thanks for the encouragement Rob. Can't wait to get at 'em!
So as Pointroll's revenue has tumbled over the last year or so, what has Gattom been doing? Planning his next big e-mail I guess?
ReplyDeleteLol, thanks Rob for the pep-talk!!!! Let's win one for Gatto!!!!! What a jackhole!!!
ReplyDeleteThis clown has no pulse on the biz, his email has spread like the clap at a Vegas brothel.
Way to draw attention to yourself, looks like your strategy backfired.
Fact check...
ReplyDeleteThe revenue numbers Gatto spits out ($79mm for 2011 and $70mm for 2012) DO NOT INCLUDE SHOPLOCAL. For 2011, Shoplocal did around $22mm in revenue and their plan is to do $25mm in revenue for 2012.
So, Pointroll's revenue are DECLINING 14% year-over-year non including ShopLocal.
Basically, Pointroll is even more fucked! There is no excuse for this decline.
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ReplyDeleteI vote Julie
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ReplyDeleteAre we still voting? I vote sarah. Ha ha. Just kidding
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ReplyDeleteAnother inspirational leader who needs to be removd. Which in Gannett's case, means a promotion (Hunke, Heather Frank) or step aside.
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DeleteLOOK AWAY... LOOK AWAY!!!
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ReplyDeletePlease stop using this blog for trash talking and profanity, this is a great forum for people to vent and we don't want Jim to close the thread again.
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ReplyDelete3pm on a Friday, this place is a ghost town looks like the excecutive team is focused on their golf-swing, baseball or setting up some "spa" time.
ReplyDeleteComforting to know we work for such a dedicated company.
Jimmy you can shut down your work on the site for the weekend, as you can tell nobody works past 1pm est or pst for that matter. Till Monday.
ReplyDeleteYeah, except the entire Production team who now has to clean up all the messes.
ReplyDeleteNow Now Gerry!!
ReplyDeleteI have followed this thread for several days. And I feel the need the contribute.
ReplyDeleteHaving worked for GCI in a senior management role on the ad side at several properties, the email sent to this team is shameful.
As many comments have pointed to, the message literally sent was one of lambasting and very much a de-motivator. The objective of the message should have provided distinct direction and specifics.
It's truly sad that that the direction of GCI lacks true leadership. In turn, it breaks aparts families...breadwinners need to find work and move away from children and more...and at the same time the folk at the top make more for saving money more than making it.
My message to my staff would have been more objective and provide solutions.
If I had the confidence of GCI management (it was brutal and at the same time telling), perhaps I would have stayed. But to have a group publisher walk in, and frankly not care why things the way they were, and threaten me directly, it was telling of the culture this company is crafted of. My reply was for her to walk the floor and hear directly on the sales team as to what was happening in the market. NOPE, she didnt care. As she walked out I am pretty sure she had earplugs in.
Funny, she recently retired and I am sure she sleeps well at nite.
It is very sad to see a great company like GCI falling down due to lack of inspired leadership.
Great point 6:47p. Unfortunately, I believe this note was the work product of Rob Gatto, CEO of Pointroll and Gracia Martore.
ReplyDeleteShortly after Rob Gatto had a blistering meeting with Gracia Martore, he composed this note and sent it out to the company.
Clearly, Gracia's fingerprints are all over this note. I can even picture her telling Rob to "get those sales people selling or else!"
Rob is not a smart manager nor is he an effective leader. Worse of, his SVP of sales is into intimidation.
Sarah Ripmaster,mthe head of sales, has not even stood up for her sales team. Not even a meeting or a note to the entire team! How sad is that.
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ReplyDeleteWill Sarah stand up for sales? Good question.
ReplyDeleteSilence speaks volume, nary a response. Apparently silence does the "heavy lifting".
ReplyDeleteGo Rangers!
sorry to bore you 11:55, there's actually a lot of PR'ers who are still spending more time working and serving clients than posting misinformation and personal attacks on the blog. Don't think for a minute that lack of bile on the blog means there's no passion here.
ReplyDeleteAs awkward as Robb's note was, I didn't see it as an attack or anything that Sarah or anyone needs to stand up to him about. What he's saying is that employees and especially sales reps will determine their destiny and the company's success. You can complain all day but sales and ops' will decide the company's success long after Robb and any other execs are gone (which probably won't be long).
ReplyDeleteAnother day with Sarah and Robb is another lost day at sea for this sinking ship.
ReplyDeleteI saw Titanic this weekend in 3-D, it was kind of ironic we are part of a natural disaster as well.
Congress straight ahead!!!!!
As a former potential client I would say to all of you. Your hurting yourselves by posting all your dirty laundry on this blog. Why would anyone want to do business with you after reading all this?
ReplyDeleteOh right, 9:48. It's the messenger that is torpedoing sales. Hanging dirty laundry is what turns people off, not wearing it. Ok, I'll believe it. And then you would naturally take those concerns and post them with the same messenger. So you, concerned former potential customer, care enough to read a huge number of posts and leave an anonymous post, but just not enough to send off an email to the CEO of the company. Okay.
ReplyDeleteSarah, Rob or whoever: Next time you take those psychology and marketing 101 classes, attend once in a while.
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ReplyDelete9:48 - 99% of the comments here are our competitors, don't be fooled. There is still no one in the industry who can do what we do and at the scale that we do it.
ReplyDeleteI fix pointroll's mistakes and make things right for their clients regularly. So apparently someone out there does it better.
DeleteJim - the fact that you just deleted those posts shows once and for all that you are at the core of the slander and misinformation and have no desire for any balanced discussion. Go burn in hell you worthless piece of shit.
ReplyDeleteFuck
ReplyDeleteYou
ReplyDeleteJim
ReplyDeleteMy question to everyone who keeps calling PointRoll a 'sinking ship' - why haven't you 'jumped ship?' Why are you still here? If you are so unhappy at PointRoll why don't you stop whining and just leave? I don't understand - no one is keeping you here? Seriously - you guys are the ones contributing to the toxicity of PointRoll's culture. JUST LEAVE IF YOU ARE UNHAPPY - stop vetting out your anger on a Gannett blog. It is so baffling to see people getting so crazy about a job that they can just walk away from...right?
ReplyDeletehey Jim - fuck you. You are a miserable worm, sludge, garbage. Surprised you're able to wake up and look at yourself in mirror.
ReplyDeleteWow such hostility, anger management issues. Sounds like a bigger problem.
DeleteI didn't see an anger on that post, just an opinion about jim
DeleteJim please delete this chain and start a new thread with a new headline. Thank you.
DeleteI don't see why everyone is up in arms over all this. Its widely known Pointroll has incompetent management from the C-Level to the Regional Offices.
ReplyDeleteTalented labor pools, savvy agency stakeholders and forward thinking Pub execs know the company is corrosive and steer clear.
The demise of this company is eminent.
For those of you who feel you are on a sinking ship, or would simply like to "jump" ship, DG Fastchannel/MediaMind are offering "at sea rescue" for talented individuals looking for strong leadership and a stable career. :)
ReplyDeletehttp://www.mediamind.com/company/careers
DG / MediaMind? Really? I'd rather clean sewers...
ReplyDeleteIf you work for anyone else guess what, you are.
DeleteMedia Mind is trash! Rob Gatto should kick your CEO's ass for even trying to post on our blog.
ReplyDeleteMedia Mind is a joke. Just talk to the people that work there or the people that left. They'll tell you the same thing. While no AdServer is perfect, PR included, I do know they are the leader in the industry, despite what this blog implies.
ReplyDeleteI used to work at Pointroll in sales. I would like to make a few point.
ReplyDelete- Gannett is bleeding Pointroll dry. Is Gannett strategically investing in this company? No they are not. They see it as a cash cow. In order to grow the business, you can't just take profits, you have to reinvest in technology and people.
- Senior management does not understand rich media, the agency space and ad delivery. The devil is in the details. You can't just take ShopLocal people and expect them to run something as complex as a rich media company. They need to know the operations, creative production, agency process and publisher sides of the business. It's complex. You need to know what you're doing.
- You can't expect to bark orders at people. You need to create a team/entrepreneurial environment otherwise you lose your most valuable asset- your people.
- Excellence needs to be expected throughout the organization. Operations is a brutal but highly important job. You need fantastic leadership in this department.
These are a few of my thoughts. I don't know Rob from a hole in the wall but I think the following:
- He doesn't understand the business enough to be strategic or manage effectively.
- Even if he had a strategic plan it would require investment dollars from Gannett which is unlikely to appear.
- The landscape is changing fast in this industry and if you are not developing technology for the future you are falling behind. It is vital to be in touch with clients on the ground level. It doesn't appear Rob is doing this.
Just my humble opinion from a former Pointroller who has moved on. :)
Executive leadership is sucking the marrow out of the life of what is left of this company. Sarah on vacation again, 3rd time in the last 5 weeks. Robb is no where to be found, this place is a joke.
DeleteShappy works harded than these 2 and he has been unemployed for about 8 weeks.
Pointroll employees are rich they all have equity in the New AK/PR partnership. Its going to IPO!!!!!! What a joke.
ReplyDeleteDG may have its issues but its well ahead of PR on every level
Sarah hasnt been to work in over a year and we wonder why revenue is falling!!
Another, "Dear God I hope it's not a real pointroll employee" moment..."IPO"? How can a company that is owned by a public company list on the exchange? You sir or madam need to calm down, 420 was yesterday and you're still high as camel pussy.
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DeleteThis memo is more telling about Pointroll mangement than any individual post could ever be. Thanks for doing this Jim.
ReplyDeleteLayoffs, on the way. The numbers are all a lie.
ReplyDeleteJim can you please post the amount of bonuses that will be paid out at the end of April for rob, Sarah, kat, and Sandy.
ReplyDeleteThank you
4/25/2012 12:44 AM
ReplyDeletePointroll is screwed! said...
Now we know what Saridakis and Ellenthal have been up to. I just heard that Andy Ellenthal sold his company to DG Fast, a competitor to Pointroll. Andy Ellenthal is going to lead all sales efforts at DG. Guess who is a large shareholder of DG??? Saridakis and his buddies! Seems like they are coming after pointroll in a BIG way!!!
Looks like Rob Gatto and the lame executives here are going to have a fun time competing against them!!!
I bet you will see our sales team jumping ship to join Andy Ellenthal.
4/25/2012 4:54 AM
Anonymous said...
I wouldn't take 'em. The ones that had good sales chops were picked off already or left for greener pastures. Those left have been damaged by PointRoll's recent reputation in the marketplace. Sure it's unfair, but why would I hire a rep with PointRoll baggage?
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ReplyDeleteWhat happened to the rapture? I thought Gatto and CO were all out? Wait...nothing happened. Business as usual.
ReplyDeleteSarah and Rob are amazing they are so connected and dial in to the team.. I have to stop myself, that was the funniest thing I wrote all day.
ReplyDeleteGatto and Ripmaster are collecting paychecks while waiting for some unsuspecting asshole to hire them. They don't work. They are too busy finding new jobs and screwing Pointroll and the hardworking people who work there. Wake up people. They are getting a ton of money and setting you all up for unemployment. You don't like it? Quit. Gannett can't fix this mess. Gatto and his puppets sure as hell don't give a shit about any of you.
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