Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from the line of Brandt Sakakeeny of Deutsche Bank. Please proceed.
Brandt Sakakeeny - Deutsche Bank
Thanks. It is Brandt Sakakeeny. Let’s say, just relative to the last slowdown in, I think it was fall of '04, how is this behaving differently than perhaps the prior one? Did you feel like you have the adequate feet on the street in terms of sales force and also, I guess to that end, how do you think the international sales and the new markets could buttress a US slowdown? Thanks.
Frank Williams
Sure. I think relative to what we saw back in September 2003, if you will go back to that time, we really did start hearing a lot of budget pressure in conversations with members. There was a lot of uncertainty about the broader economy, but our agenda has really started to shift to a more cost-oriented topics. We also saw a lot of strain on the renewal side. I think here, at least on the good news side, I think our members have performed reasonably well from a financial perspective. We have seen strong renewal rates and a lot of the concern is really on a forward basis due to uncertainty that had been created by a deteriorating macroeconomic picture across the year. So I do think it is different.
I do think we have seen most of the slowdown in our higher price point programs on analytical tools and on the implementation support side. International market, I think, has been quite strong and we are quite encouraged. So we haven't seen the broader economic impact on the international market. So I do think that is a very positive place for growth in the second half of the year, and I think we also saw pretty good performance on the education side. Again, that is still a relatively small part of our business, but not the same economic impact there as well. So there is some good news here, more than anything we need to get conversion rates on the new business side on track and we have a plan in place, and hopefully with a few things going better in the broader economy we will start to see an uptick as we head into the second half of the year.
Brandt Sakakeeny - Deutsche Bank
Great. Thanks, Frank. And do you think in terms of the incremental headcount in the salesforce, will you be adding disproportionately overseas or to the US?
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