GoTo.com, promising Internet search engine Message Board

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Technology Stocks : GoTo.com, promising Internet search engine

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To: Stephen who wrote (437)	7/21/1999 11:19:00 AM
From: Mike Fredericks	Read Replies (2) of 977

Possible good news: Just got e-mail from GoTo that as of July 30, 1999 they are going to raise their payout rate from 2 cents per search to 3 cents per search on the affiliate search boxes. My math a few weeks ago estimated GoTo's revenue at 2.95 cents per search. One of the following is happening: Either A) I misjudged revenue per search and the revenue per search is higher than 3 cents and thus they can increase the payout, thereby increasing traffic. The increased traffic, even at a lower margin, will be beneficial.... or B) Goto is willing to take a loss on referred traffic, hoping that the increased traffic will lead to higher bids from advertisers and it will eventually pay for itself. I'm hoping A. It's a more conservative plan, and I would like GoTo to reach profitability soon. The bids have doubled on Casino in the past 3 months, so who knows what could happen... -Mike

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