On 1 Feb 99, at 9:03, Suzanne Stephens wrote:
> I'm still scratching my head trying to figure out how money-losing
> companies can be worth so much money on the stock market. I can see it
> with a company like Amazon.com, which appears to be a viable business
> model. But with a company like Starseed, which has virtually no income,
> gives away its services, and (unlike Yahoo) hasn't been very successful in
> selling ad space... I just don't get it. Perhaps I have had the notion
> that businesses need to make a profit drilled too firmly into my head.
Yeah, I was like that as well. It was easy enough to give away free
space (even automate it) but where was the money? I think, now,
that the money is in the brand, and because of the brand, in the
recognition and in the "customer" as defined by someone who uses what
you give them.
You can sell a brand. You can sell it for more as it is more
recognized (and depending on what it is recognized for).
The customers. Certainly you can sell the data you receive about
your customers. Valvoline has an online record of my car. I haven't
visited it yet. But what if I were to really use that and so they
were pretty sure that my tires needed changing. What if there were
100K other people like me. They could display a firestone tire ad
when I log in. Sounds like targeted advertising. I am surprised I
have not seen more like this (but then I don't use any of these
online services).
If they use a product on a recurring basis then perhaps you can sell
advertising. You can begin to upsell. I think the key words here
are recurring and upsell.
In any case it is all very interesting.
Peter
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