I am not sure if it was because of the simultaneously scheduled “King of Cars” TV marathon on A&E or that the all male review “The Thunder Down Under” was completely sold out this past week, but Jeff and Alex were unable to attend the Spring Digital Dealer Conference being held in Las Vegas, and I kindly stepped up to provide this friendly review for each of you…

Located at the Mirage Hotel in Las Vegas, this year’s spring conference promised some great entertainment combined with a strong agenda of current issues within our fast-moving market.  I teamed up with Alex Jefferson of Proctor Honda and Acura to attend multiple sessions, as well as to meet with several vendors to share some useful information with our DealerRefresh readers (please note the well-coached GQ pose that Alex prompted me to take...).


Kevin Frye and Alex Jefferson

“Please God, what does it take to sell a car?” That is certainly a strong opening statement, and this session led by Gil Chavez, Joe Webb, and Kim Clouse reviewed some strong fundamentals to what it takes to utilize the Internet successfully to sell cars. This was a great session for the first day as it reminded everyone of the skills that build a strong foundation for your Internet strategy. With such a challenging market, and with so many things to do, Gil, Joe and Kim emphasized that today’s Internet manager must be “God-like” – which begs the question “What type of pay plan does a God-like Internet manager deserve…”


Joe Webb and Gil Chavez

Video is still a hot topic, and has been building interest at these conferences since it first hit our market.  Sean Bradley gave a great seminar that shared the benefits of video for your dealership, as well as several useful tips.  Some things that caught my attention included NOT using TubeMogul to distribute your videos – but rather taking the time to distribute unique content, and to mix up your titles and descriptions rather than just creating duplicate content.  There was also some discussion regarding using recycled content that everyone else is using (OEM videos) vs. creating unique content.  I learned about some technology developments in this arena from Sean that I think could provide some very interesting changes within our Video SEO strategies, to include pixel, voice, and face recognition technology within the search engines.  Google is concerned about content, and does your video content have audio that is saying the keywords you are targeting?  And in a side- note, if you are making video testimonials of your customers – are you getting a signed release to publish them online???


Alex Jefferson, Sean Bradley, Karen Uriarte, Karry Moore

How about “Getting Social” online? Jesse Biter of Homenet led an excellent session on how to utilize social networking tools as part of your Internet solution. Jesse had a full-house of attendees, and this was definitely a hot topic for this conference.  I think Jesse summed this up quite well with telling us that social networking is just “word-of-mouth” online.  What is your dealership’s best closing source?  Referrals!  Social networking provides the tool to utilize “word-of-mouth” online to create referrals to your dealership.  I found 2 very useful recommendations from Jesse to include TweetBeep (which is very similar to Google Alerts, but allows you to keep track of any conversations about you and your dealership online), as well as to include your Facebook info in your signature fields for your emails as a great way to personalize yourself to your customer.


Jesse Biter

Do you know what your customers are saying about you? Are you managing your online reputation, or just burying your head in the sand and hoping that everything goes ok?  Matt Lamoureux of DealerRatergave an outstanding presentation that addressed all areas of online reputation management.  He also shared how to share positive reviews online with your Facebook friends, which is a great way to build up more of those online referrals.  I think more than half of the sessions I attended brought up DealerRater as a “must” if you are serious about your Internet strategy, and I am strongly encouraged to see Chip Grueter and his team being incredibly aggressive in keeping their product on the cutting edge.


Matt Lamoureux

I know that it is hard to rate a “best” seminar with so many great speakers and presentations, but I have to say that Brian Pasch hit a home-run with his “SEO Survival Toolkit”. Let’s face it – the battleground of our market is on the search engines, and Brian showed us several useful tips on how to better search engine optimize our sites.  What really aggravates me is that what Brian is showing us (e.g. having duplicate titles and duplicate meta descriptions on our website pages is not good) should be common sense for SEO, yet why do our automotive website vendors still make these common mistakes? When we are paying thousands of dollars a month to our website vendors, why do we have to pay additional money to make their sites perform optimally in the search engine results?  Brian also shared great tips on using blogs, press releases, Google Map listings, and much more to better optimize your sites.


Brian Pasch

The exhibitor hall was huge, and unfortunately, not very full.  Our slow market was reflected in less vendors being present, as well as in where the vendors were. Several vendors are taking an alternative approach to these conferences, and are choosing to work the floor and the sessions aggressively with networking rather than have an exhibit. Depending on what service or product they provide, this can be a very effective approach. I tried to visit most of the exhibitors and learn what was hot, and what was new. vAuto has been upgrading their tool, and now has a new module where you can view a graph of where the inflection point is for your inventory pricing – or more simply – at what point of pricing does your online views suddenly jump!  eBay Motors is taking a more aggressive approach now in better training dealers on how to use their tool effectively.  More dealers are now looking to Live Chat to improve their website conversion rates, and ActivEngage was seeing a lot of traffic.  While speaking with Homenet, I learned about several new features that I was unaware of, but that have been available to me at no additional cost for some time.  This was a great wake-up call for me (and I hope for others) that all of us need to go back to our current vendors on a regular basis to train on their tools and ensure that we are using them 100% to our advantage.  It is also encouraging to me to see vendors that are constantly improving and upgrading their tools on their own initiative to help us in our business – that is the kind of partnership that my group looks for and is most beneficial for us. And before you ask, the “give-aways” were quite minimal this year, so Alex and I chose not to give a best give-away prize this year.  I am not mad at any of the vendors for this, in fact, this is a good sign, as when times are bad, ALL of us need to cut back on unnecessary expenses.

Very interesting concept – what happens when several different vendors are trying to sell their service, but find other areas that their prospects are struggling with, and are making it difficult for the vendor to close their deals?  Three proactive vendors decided to address this and banded together to provide a combined solution to best meet their customers’ needs.  Dealer 212 is a consortium of 3 vendors, Su-Lin Jasicki with CarSoup, Tanesha Bennett with ADTraffic, and Katie Jackson-Richter with Cuneo Advertising.  What impressed me about this approach was that they were willing to think “outside of the box” and put their heads together to find a solution that worked best for the dealer, rather than compete with each other for the best solution for themselves.  I am looking forward to seeing how this works out at the next session…

What was the “word on the streets?”  Was it text messaging?  Twitter?  Facebook?  Community Pages?  Video inventory?  Online pricing tools?  Best SEO tactics?  The “word” was OVERWHELMING. Listening to people in the sessions or at the exhibit hall showed me that attendees are struggling with how to manage everything that this job entails.  How do you manage 17 different social networking sites, 8 blogs, 4 community pages, Live Chat, inventory, video SEO, Tweeting all day, and 1001 other items every week when you are already pressed for time?  And on top of that, we are still fighting internal politics on getting the culture at our dealerships to change with this market. My advice is to choose your battles. You cannot do everything yourself. Prioritize what you need to do, and then do that as well as you can. Then choose to LEAD your people to take ownership of the Internet as well, and to help you with other areas that you cannot manage directly.


Patrick Workman, Kevin Frye

Another great benefit of attending these conferences is seeing opportunities for new businesses to serve our fellow dealers. With that in mind, Alex Jefferson and I are starting a new company called “BS Statistics”.  Our company will provide any statistics you need to sell your product or service, and we can show you how our service will help increase your sales by 43.7%.  Further, with our help, ANYONE can become the “expert” in their field, using our BS statistics to provide the credibility you need in pushing the product or service you are selling.  Don’t believe us?  87% of the speakers at Digital Dealer are recognized experts in their field, thanks to our BS statistics…I hope this is taken in good form, as after attending countless sessions and product demos, we were beginning to question where so many often quoted “stats” come from…

Ah – the “after-hours” section of the review.  Hey, what happens in Vegas stays in Vegas, right? All kidding aside, the entertainment available in Vegas is unmatched.  Many thanks to Ruanne Varden and Stuart Lloyd at Clickmotive for a great dinner and a ticket to the Cirque de Soleil Beatles Love show (absolutely incredible, has my highest recommendation, and anyone going to Vegas without seeing a show is missing the best part).  Chip Grueter and the DealerRater team hosted a fantastic dinner and drinks session at Stacks (fantastic restaurant at The Mirage) that was well attended and lots of fun.  Whew – and then Jesse Biter and the HomeNet team kept me out the entire night at the exclusive nightclub Jet. No, I didn’t see Brittney Spears there (it is one of her places to go) but I did see Mike Roscoe, Patrick Workman, Phil Penton, and many others living it up. Thanks Jesse for your hospitality!


Su-Lin Velin Jasicki, Kevin Frye, Tanesha Bennett, Alex Jefferson, Katie Jackson-Richter

With all that said, here is my concluding sermon. There is no “school” for what we do. And if some university started a degree for “Automotive Internet Professional”, the day you graduated with your degree, the information would likely already be outdated. These Digital Dealer conferences are invaluable – and they are the only “school” available to us that are up to date and are moving as fast as the market (hence 2 sessions per year). Even with the Las Vegas nightlife and some very late nights for all, the sessions were still highly attended. The people attending these conferences are serious and are not only attending the sessions, but are working the exhibit hall to network with others that can teach them more. My overall summary is that this was another outstanding conference, I came away with a lot of great ideas that can make our group better, and I would highly encourage everyone to attend the next one. Cheers to all (and I apologize if I could not mention all of the great folks I met with)!  And if you missed it, here is a short video clip of the Mirage volcano eruption.
About the Arthor: Kevin Frye is the eCommerce Director
for the Jeff Wyler Automotive

TRILOGY ENTERPRISES ANNOUNCES CASH TENDER OFFER FOR AUTOBYTEL AT $0.35 NET PER SHARE

AUSTIN, Texas, April 20, 2009 — Trilogy Enterprises, Inc. (“Trilogy”), a provider of technology powered business services to the automotive industry, today announced that its wholly-owned subsidiary, Infield Acquisition, Inc., has commenced a tender offer to acquire all of the outstanding shares of common stock of Autobytel Inc. (Nasdaq: ABTL) for $0.35 net per share in cash.

The offer represents a 32% premium over the trailing 30-day average closing price of Autobytel’s common stock.

“We are pleased to offer a significant premium to Autobytel’s shareholders, “ stated Sean Fallon, Senior Vice President of Trilogy. “The automotive industry is experiencing an unprecedented decline and we believe that Autobytel must take steps now to ensure its shareholders receive the highest value. Given the significant risks of this business and the Company’s history of operating losses, we believe the premium offered is very attractive.”

“As Autobytel’s second largest stockholder and the beneficial owner of approximately 7.4% of Autobytel’s outstanding common stock, we have studied this business carefully.  We have concluded that Autobytel’s ability to  execute a turnaround and realize significant value for its stockholders is subject to significant and unacceptable risk.  We believe that a high-premium, all-cash tender offer is the most effective way to maximize value for all stockholders.  As a result, we have determined it is necessary to take the offer directly to our fellow stockholders in order to deliver significant value to them as expeditiously as possible,” added Mr. Fallon.

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“We are confident our fellow stockholders will find that this compelling offer reflects a superior value for their shares, both in light of Autobytel’s current and recent trading history, as well as any realistic near or long term assessment of Autobytel’s prospects.  We are committed to completing this offer and remain willing to work cooperatively with Autobytel,” concluded Mr. Fallon.

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The tender offer is scheduled to expire at 12:01 A.M., New York City time, on Tuesday, May 19, 2009, unless extended.  The tender offer documents, including the Offer to Purchase and related Letter of Transmittal, will be filed today with the Securities and Exchange Commission (“SEC”).  Autobytel’s stockholders may obtain copies of the tender offer documents when they become available at www.sec.gov.  Free copies of such documents can also be obtained when they become available by calling Morrow & Co., LLC, toll-free at (800) 662-5200.

The tender offer was detailed in a letter dated April 20, 2009 from Trilogy to Autobytel’s President and Chief Executive Officer, Jeffrey H. Coats, and Autobytel’s Board of Directors.  The full text of the letter is set forth below.

_____________________

April 20, 2009
Autobytel Inc.
18872 MacArthur Boulevard, Suite 200
Irvine, California 92612-1400

Attention: Mr. Jeffrey H. Coats, President and Chief Executive Officer

Ladies and Gentlemen:

Trilogy Enterprises, Inc. (“Trilogy”), through its affiliates, owns approximately 7.4% of Autobytel Inc.’s (“Autobytel” or the “Company”) stock and is Autobytel’s second largest stockholder. We have successfully created and delivered innovative solutions to the automotive industry for more than a decade.

We believe Autobytel is facing a crucial period in its corporate existence. The automotive market is undergoing a crisis so severe that it is difficult to adequately describe.  Strong companies may find a way forward.  Weak companies will undoubtedly fail.

Unfortunately, Autobytel has historically struggled to create an independently viable business. For example:

• In 2006, Autobytel incurred operating losses of $40MM on $85MM in revenue;
  
• In 2007, Autobytel incurred operating losses of $35MM (not including litigation settlement costs) on $84MM in revenue; and
  
• In 2008, Autobytel incurred operating losses of $36MM (before impairment charges and litigation settlement costs) on $71MM in revenue, which declined by 15% from the prior year.

Autobytel has itself acknowledged that the market is “extremely challenging” and it expects the U.S. automotive industry to decline more than 20% in 2009. Given the market outlook, what should stockholders reasonably expect from a company that has not proven itself viable historically?

We recognize that Autobytel has taken steps to address this crisis.  However, we do not believe the steps taken are adequate to address the severity of the situation.  Autobytel facing another corporate reorganization during potentially the worst market in history seems highly unlikely to prevail. The current plan appears akin to “let’s give this one last shot”. Unfortunately, shareholder cash and value is at stake.

Given Autobytel’s business prospects and the significant historical and recent operating losses, the Board should take steps now to preserve as much shareholder value as possible. We believe the only means to accomplish this is the immediate sale of the business.

We are aware that Autobytel had engaged a financial advisor to evaluate the possible sale of the Company.  Autobytel announced that its advisor conducted an extensive process which resulted in Autobytel concluding that shareholder value could not be maximized in the current environment. We assume this means no buyer desired to pay a price required by the Board.

Today, our wholly-owned subsidiary has commenced a tender offer that provides stockholders with an opportunity to sell shares at $0.35 per share in cash.  We believe this price is likely lower than the share price the Board aspired to obtain during the recent sale process. However, we believe it is a full and fair value for the Company and offers both an attractive premium for stockholders, as well as immediate liquidity for a stock that is thinly traded.

We hereby request that the Board support the proposed tender offer, and in doing so, consider the following:

• The offer represents a 32% premium on the stock’s trailing 30 day closing price;
  
• The offer provides immediate liquidity for all stockholders;
  
• The trading volume reported for April is less than 65,000 shares per day, on over 45 million shares outstanding;
  
• The Company is a sub-scale public company and may not be able to continue to bear the costs and obligations of a public company;
  
• The Company cannot withstand another shift in strategy during what may be the worst market in history;
  
• The Company may not be able to continue to bear the costs of its management team, including the lucrative packages offered to its recent hires;
  
• The Company recently issued executive stock options at $0.35 per share, which the Company must believe is fair value;
  
• The Company had $32MM in cash in September and only $27MM in December;
  
• The Company continues to burn cash and is likely to do so for the foreseeable future.  It is reasonable to believe that the Company may run out of cash by the end of 2010;
  
• Without at least breakeven results, stockholder value will only continue to deteriorate until no stockholder value remains;
  
• Any acquiror must take on the Company’s cash burn and fund the Company in a highly uncertain environment; and
  
• Any acquirer may have to invest significant additional funds into the Company to make it operationally efficient and competitive.

It is time to stop the erosion in stockholder value. Looking at where Autobytel’s stock price traded a year ago is not indicative of the true value of the Company, but it should serve as a reminder of the value that was destroyed.  Autobytel’s management should realistically evaluate the prospects for its business. A candid assessment of that situation should lead management to conclude that an all cash offer at a significant premium to all Company stockholders is in the best interests of the stockholders.

We are pleased to make this proposal to our fellow stockholders.  We believe they will find it to be attractive in light of both the Company’s trading history, and a realistic assessment of the Company’s prospects.  We are committed to completing this offer and hopeful that we will be able to work cooperatively with the Company in doing so.

We look forward to your timely response.

Sincerely,

Trilogy Enterprises, Inc.

About Trilogy Enterprises, Inc.
Trilogy creates technology-powered business solutions that deliver profitable new customers to companies worldwide.    Trilogy, through its affiliates, has enjoyed decades of success by delivering innovative solutions to the world’s largest companies.

DealerRefresh creates new forum for car dealers

DealerRefresh creates new forum for car dealers and vendors to provide reciprocal marketing, business and networking support. DealerRefresh is the main source for automotive internet sales professionals looking for a higher level of online information. Baltimore, MD – April 15th, 2009

As the automotive industry struggles to stay afloat amid the country’s troublesome economy, a new web platform by DealerRefresh.com joins car dealers and vendors together in a unique forum that benefits both parties.

The forum is a virtual 24/7 flow of information, questions and answers from both car dealers and auto industry vendors. The unique platform allows users on all ends to post questions and answers on various topics ranging from how car dealers can use new technologies to attract sales leads to how dealer vendors can best approach an auto dealership for new business.

For car dealers, the DealerRefresh.com website presents an opportunity to gain new insight into industry best practices, tips and trends for driving sales. For automotive vendors, the availability to provide answers, advice and support presents a gateway to new business connections.

Since 2004, DealerRefresh.com has been committed to the betterment of the automotive industry. That mission is carried out on the Internet through their elaborate website which serves as a ‘go to’ tool for car dealers across the country.

According to founder, Jeff Kershner, “ We decided to create a forum for people to discuss best practices and garner support through the use of the sophisticated technologies we have all found ourselves confronted with. It also allows a dealer to find friends in a likewise pursuit of engaging a vendor to change or expand on a particular item.”

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The dealer-vendor platform, in summary, helps to-

1. Seek understanding and best practices in the automotive technologies (ie. CRM, ILM, Google, Inventory, and even Blackberries)
   
2. Gain a larger voice to aid in problem solving
   
3. Find a solution or software that better fits your dealerships process

Visit the DealerRefresh Technology Forum for more information.

What is the direction of the forum and why was it started?

DealerRefresh already attracts many of the best minds in the automotive eCommerce business, but not everyone has a voice. With the forum environment those 2:00 AM sparks of brilliance can now be posted by anyone. Questions can be answered practically in real-time; meaning a Friday evening problem might not have to wait for a Monday morning solution.

“Let’s face it, the technology is moving faster everyday and it is overwhelming. If we all work together, we can cut out a lot of frustration,” says Alex Snyder .

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What makes the DealerRefresh forums different?

Nowhere is there a place that focuses on the retailing automotive technologies. And nowhere is there a place that focuses on all of them! By focusing on best practices and support it provides new ground on an area that every dealership is having some sort of struggle, or has been considering exploring.

Why would a vendor join the DealerRefresh Software forum?

Many times dealers and vendors don’t see eye to eye. Unfortunately this is caused because a dealer is working with someone in a lower-level support position who doesn’t convey the need to the people who will understand it. By watching the DealerRefresh forums a vendor can get a clearer picture of where opportunities are. By participating on the forums, a vendor can deliver a level of transparency that would make dealers want to flock to them. At the end of the day, vendors and dealers are more a partnership than a client/vendor relationship and need to work together to get the job done!

Eventually, a vendor might have enough great information circulating through the forums that it could be used as a FAQ source for support staffs to point dealers to. Eventually, it could serve as the place for all a vendor’s support!

About DealerRefresh
DealerRefresh is for the car dealer Internet sales professional thriving for more information looking to elevate their game. It’s also for industry professionals looking to keep up with some of the latest dealer industry news and trends. DealerRefresh was the first site to bring automotive Internet sales professionals together in one virtual spot.

The website covers everything from internet marketing best practices for dealers, what works with SEO and search engine marketing, how online video fits into a dealer’s landscape to online reputation management for any dealership.