The bottom line is how much does it cost to get a customer

So here's an example of the maths, its inaccurate but it shows the principle ....
The average guy spends $10 per month on Skype and there 1,000 ,000  of them
That's $10 million per month or $120 million a year
Healthy companies trade between 20-40 times earnings, therefore the book value
of the company is (conservatively) $2.4 billion if you want to buy all its shares.
Now if the company is worth $2.4 billion and has a 10% asset base and one
million customers each customer must be worth about  $1100.
So they can afford to give away $1100 per year or $80 per month just to have you as a customer.
Going back to the original guy who spends $10 per month (maybe $20 if its free) the company
increases in value by  $1100 - $240 ($20 x 12 months) = $860  every time they sign up a new customer .
Of course  there is some attrition but that is all factored into the equation.

Henry 
     

 


John Scully wrote:
I was once in a sales meeting where a guy doing a presentation countered an argument that we
would be giving the product away for free by saying
"Yes, but we will make it up on volume!"
Perhaps he works for Skype now.


----- Original Message ----- From: "Mark Phillips" <[EMAIL PROTECTED]>
To: "Commercial and Business-Oriented Asterisk Discussion" <[email protected]>
Sent: Tuesday, May 16, 2006 5:02 PM
Subject: Re: [asterisk-biz] All users get free USA/Canada calls



All this just to win over customers.

On Tue, 2006-05-16 at 18:41 +0200, Wilson Pickett wrote:
http://www.mercurynews.com/mld/mercurynews/news/breaking_news/14586267.htm

"SAN JOSE, Calif. - Skype, eBay Inc.'s Internet telephone subsidiary,
has stopped charging users for dialing up people on traditional
landline and mobile phones in the U.S. and Canada.

The Internet telephone service, which has always offered free PC-to-PC
calls around the world, said Monday it will offer its SkypeOut service
for free until the end of the year. Previously, Skype users paid about
2 cents a minute for calls to landline and mobile telephones."
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-- 
Henry L.Coleman [ VoIP-PBX ] Tel.1 866 415-5355 Ext.301



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