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Technology Stocks : eBay - Superb Internet Business Model
EBAY 85.36+1.1%3:59 PM EST
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To: Cap_Loss_Cfwd who wrote (4031)7/8/1999 1:08:00 PM
From: J. C. Dithers  Read Replies (2) of 7772
 
I don't believe commissions are particularly important to eBay ...

Thanks for the thoughtful response, Cap Loss -

I have never been able to see how commissions alone could ever make eBay profitable on a scale remotely approaching its market capitalization. What I see eBay doing, is building a huge international franchise in personal auctions. What this would create is an immense audience of "eyeballs" who are loyal to the site and who spend hours a day interacting with it. The question then becomes, how do they generate profits from these eyeballs? I have to believe that coming up with an answer is the main strategic planning focus of eBay management. I don't see that the answer is "commissions." I think it must lie somewhere in the realm of advertising. When you think of what companies pay for 30 seconds of air time on the Super Bowl, with no captive audience interaction, the potential for a site like eBay must be mind-boggling.

If I knew how to do it, I would be instantly rich without the stress of the stock market! I don't, but I'm going to hold some eBay shares long with faith that eBay will find (or already has in mind) the answer.

Regards,

JC
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