Stamps.com 2012 Annual Report Download - page 15

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If we do not successfully attract and retain skilled personnel for permanent management and other key personnel positions, we may not
be able to effectively implement our business plan.
Our success depends largely on the skills, experience and performance of the members of our senior management and other key personnel. Any
of these individuals can terminate his or her employment with us at any time. If we lose key employees and are unable to replace them with
qualified individuals, our business and operating results could be seriously harmed. In addition, our future success will depend largely on our
ability to continue attracting and retaining highly skilled personnel. We may be unable to successfully attract, assimilate or retain qualified
personnel. Further, we may be unable to retain the employees we currently employ or attract additional qualified personnel to replace those key
employees that may depart. The failure to attract and retain the necessary personnel could seriously harm our business, financial condition and
results of operations.
The success of our business will depend upon the continued acceptance by customers of our service.
We must minimize the rate of loss of existing customers while adding new customers. Customers cancel their subscription to our service for
many reasons, including a perception that they do not use the service sufficiently. Also customers may feel the costs for service are too high,
they may be going out of business, or they may have other issues that are not satisfactorily resolved. We must continually add new customers
both to replace customers who cancel and to continue to grow our business beyond our current customer base. If too many of our customers
cancel our service, or if we are unable to attract new customers in numbers sufficient to grow our business, our operating results will be
adversely affected. Further, if excessive numbers of customers cancel our service, we may be required to incur significantly higher marketing
expenditures than we currently anticipate to replace these customers with new customers.
If we fail to effectively market and sell our services and products, our business will be substantially harmed and could fail.
In order to acquire customers and achieve widespread distribution and use of our services and products, we must develop and execute cost-
effective marketing campaigns and sales programs. We currently rely on a combination of marketing techniques to attract new customers
including direct mail, online marketing and business partnerships. We may be unable to continue marketing our services and products in a cost-
effective manner. If we fail to acquire customers in a cost-effective manner, our results of operations will be adversely affected.
If we fail to meet the demands of our customers, our business will be substantially harmed and could fail.
Our services and products must meet the commercial demands of our customers, which include home businesses and offices, small and medium
sized businesses, corporations and individuals. We cannot be sure that our services will appeal to or be adopted by an ever-
growing range of
customers. If we are unable to ship products such as items from our Supplies Store or PhotoStamps in a timely manner to our customers, our
business may be harmed. Moreover, our ability to obtain and retain customers depends, in part, on our customer service capabilities. If we are
unable at any time to address customer service issues adequately or to provide a satisfactory customer experience for current or potential
customers, our business and reputation may be harmed. If we fail to meet the demands of our customers, our results of operations will be
adversely affected.
A failure to further develop and upgrade our services and products could adversely affect our business.
Any delays or failures in developing our services and products, including upgrades of current services and products, may have a harmful impact
on our results of operations. The need to extend our core technologies into new features and services and to anticipate or respond to
technological changes could affect our ability to develop these services and features. Delays in features or upgrade introductions could cause a
decline in our revenue, earnings or stock price. We cannot determine the ultimate effect these delays or the introduction of new features or
upgrades will have on our revenue or results of operations.
The termination of agreements with our integration partners could adversely affect our business.
We have partnership agreements with many integration partners in the high volume shipping area of our business. These partners integrate our
PC Postage services into their offerings. The termination or modification of any of these agreements by us or our partners could result in lost
customers, reduced postage printed and lost revenue, and our results of operations could be adversely affected.
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