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Strategies & Market Trends : ZixIt Corporation (ZIXI)
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To: 10K a day who wrote (605)11/11/1999 8:41:00 PM
From: jjs_ynot  Read Replies (1) of 4120
 
Poet,

This entire business is about economies of scale. WHen you reach a certain size the cost of marketing to new and existing customers, processing transactions and customer service drops below your revenue and then the margins start to expand.

The problem is that the credit card companies and banks already have the scale advantage going in. It really is unfair. Notice that some phone companies are entering, since they have the scale (size) as well.

Dave
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