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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 233.73+0.2%11:21 AM EST
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To: Rob S. who wrote (67325)7/12/1999 5:22:00 PM
From: KeepItSimple  Read Replies (2) of 164684
 
Hundreds of billions of dollars of business are transacted via the telephone every year, in the US alone. Worldwide it runs in the trillions.

Obviously, this presents a HUGE opportunity for businesses to start up to provide middleman services and get a cut of all that money that flows over the telephone lines.

Oops, no it doesnt. It seems the telephone simply enables businesses and customers to contact manufacturers/suppliers directly. The phone company doesn't get a cut. How would you like to pay 2 percent of a 10 million dollar contract to Pacific Bell simply because you agreed to terms over the telephone? How about to mindspring? Your local ISP?

Strangely, nobody seems insane enough to believe that phone companies will get a cut from these transactions. However, the entire as-yet-to-be-seen profit picture of the internet seems to rely on scalping a percentage off every transaction. Somehow. Maybe. Preferably a few years after the insiders can sell their shares to the public for billions of dollars. Ebay is the only company who has shown they can make a profit like this, but the exact service is currently being offered by quite a few companies, for free.

Is there an industry of "telephone companies" who act as middlemen between large retailers and their customers? No.

And pretty soon, investors will realize that there can't be an industry of "internet companies" acting as middlemen either.
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