America On-Line: will it survive ...? Message Board

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Technology Stocks : America On-Line: will it survive ...?

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To: Steve Robinett who wrote (6580)	12/24/1997 12:35:00 PM
From: jack rand	Read Replies (1) of 13594

Volume of sales done by merchants on AOL no longer directly impacts AOL's bottom line. Last July, AOL switched from charging merchants commissions to renting them space (with far smaller commission % kicking in at very high thresholds of sales achieved over 1-3 year periods of the contracts). Indirect impact of success by merchants would be to attract more of them and enable AOL to raise fees. But it has sold much of its prime space on multi-year deals, and thus limited immediate leverage. Incidentally, last week, the CEO of 1-800-Flowers said in a CNBC interview that sales via its website were growing much faster than sales via AOL.

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