Patrick, Your charts shed some important light on the subject that the transaction volume alone did not show. Where did you obtain the number of spends and other data?
The additional information you provided with the average spend size and the number of spends is very enlightening for the following reasons: - Given only the daily transaction volume chart that most of us have been looking at this week it appeared at first glance that e-gold suffered a serious decline in business from June - July of this year. - However, when one looks at the chart of the number of spends per day the usage has actually increased by 80% during the same three month period that the total transaction volume fell by 60%. - Since e-gold's spend fee is capped at US 50 cents, any transaction over $50 creates the same amount of revenue for e-gold. Therefore in order to maximize revenue a business goal for e-gold should be to shoot for an average transaction size of $50. - From June to August of this year the average transaction size fell from $270 to $70. In the same period the number of daily spends more than doubled. (That fact might explain the recent problems the e-gold system has experienced : Server overload. A sign of success.) - It is reasonable to conclude that e-gold's transaction revenue actually increased by 125% from the June low of 10,000 daily transactions to the late August high of 22,500. - Going from the figure that 70% of e-gold spends do not have sponsor accounts, the average revenue e-gold earns from a spend should be about 42.5 cents. - Therefore if August's spend rate is sustained over the next year e-gold will generate about $3.4 million dollars from transaction fees. That is up from about $1.75 million per year generated over the previous 18 months. That is a 94% increase in revenue! In conclusion, e-gold nearly doubled revenues over the past three months while total transaction volumes fell without increasing expenses! That stunt that should put Doug Jackson in the business hall of fame, if he can sustain the trend. On the other side of the fence, Omnipay earns its revenue from exchange volume, not number of transactions. So the increased revenue on the e-gold side of the fence may have been balanced by a corresponding decrease in revenue for Omnipay. However, if e-gold spends continue to increase at the rate they have over the past three months Omnipay should eventually catch back up as total transaction volume starts to rise again. Someone could write a doctoral dissertation on the gold economy. This is a fascinating economic experiment! Find this post enlightening? Click some gold to http://2cw.org/?632050&EG . Cheers, Ken Griffith --- You are currently subscribed to e-gold-list as: [email protected] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
