Not short anything...I don't short. I'm just sharing information. Alot of people invest today on hope. They hope something will work or make money (AMZN!!!). Look at YHOO - try and justify that 1,770 PE ratio. This is insanity and a investing with a lack of understanding of what companies do.
I don't invest in companies that I don't understand or see where they are going - do you? As a result, I crack up whenever I hear people talk about how advertising is going to make websites successful. At best, it can only make a few successful, and it will require tight cost controls.
Consider this conundrum: I read somebody put forth the concept of a website that would pay $100 to all people who mailed a check for $95 to the site. How would they make money? Advertising. Lots of people would visit the site, which would lead to lots of impressions, which can be sold. Thing is, to make BACK that $5, you need 1,000 visits to be sold at a $5 cost per thousand. This is possible, but almost all those 1,000 visits would potentially cost you $5. So, you'd really need a cost per thousand of $5,000. NOBODY pays that.
If you start streaming ads...such as NetZero...you can reduce that cost. But it still lacks punch, and advertisers will remain wary.
" I use NetZero only when I'm on the road."
Interesting. Another reason why it's unlikely to work in the long run. An uncommitted user base. AOL is successful because its user base is committed and continues to use the service REGARDLESS of where they are. |
