>Here's what I perceive to be the fundamental problem with this idea: > >I order some widgets from Bob's Kickass Discount Widgets. Bob has paid for >the development and maintenance of his web site, and so far so good ... > maybe he paid for some >television ads (very expensive) but he wouldn't have done that; he would have used banner ads on the e-gold page, or, this mailing list. that would have been a "stupid" business decision! :) > that got my attention and brought me to his >web site. Now his investment starts to pay off as I click him some grams. >Super. > >But wait, when I get to the confirmation page I see a banner ad for Joe >Blow's Super Duper Discount Widgets. Excellent. >I decide I'd better do some comparison >shopping before I confirm that spend. What do you know? Joe Blow's prices >are lower. Why are they lower? Because he's a better businessman, ie, he runs a more efficient business! > Is it because he runs a more efficient >business? Yes - exactly! His competitors are so dumb they are buying *TV ADS*, for god's sake. Obviously, with all products and services, the (vast) majority of what you are paying for is marketing. In the example, Bob is incompetent. Anyone who is that incompetent at the marketing (ie, major, central) part of their business, probably isn't even any good at the other minor sections that you are paying for, like tax management, employee relations, systems developments, product manufacturing, legal and liability management and so on. >No, it's because he didn't have the overhead cost of that >expensive advertising campaign. > >Bob's KDW spent all the money on development and marketing, Au contraire, you said that he blew all the money on an incredibly expensive TV campaign. Here's the perfect example: Bananagold spend $25 million on some TV ads -- what the heck do you think would happen to bananagold.com ?? poof! :) > and Joe Blow got >to piggy-back off of it by buying just one banner ad that he knew would be >seen by all of Bob's customers. Joe Blow's merchandise is cheaper only >because he is able to foist virtually all of his advertising costs onto >Bob's KDW. This is at most one step removed from simple theft. > >And no, I do not think it an unlikely scenario, especially as e-gold grows. - - - - - - - - - - - - - - - - - - - - - - - - "Advertising is commercial grease, oil, silicon spray to commerce." - Bob Nugent --- You are currently subscribed to e-gold-list as: archive@jab.org To unsubscribe send a blank email to [EMAIL PROTECTED]
