Amazon.com, Inc. (AMZN) Message Board

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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 244.25

-2.0%

Nov 12 3:59 PM EST

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To: BayPig who wrote (10608)	7/17/1998 6:08:00 AM
From: John May	Read Replies (1) of 164684

BayPig, I can't answer your question. I've emailed Amazon and will report back. My opinion: Associates Payments are commissions and, therefore, a marketing expense. With regard to: <<Is it also Amazon's contention that they could stop payments to their associates and maintain the same amount of revenue? >> Why would they do this? With 60,000 Associates, Amazon must feel that their success is largely attributable to this innovative program. Surely they wouldn't pull the plug on it. If they did, I think revenue would fall precipitously. I could envision them cutting the Associates' commission rate. That's not the nicest thing to do, but hard ball is played every day. And I would also imagine that if they did, their stock price would shoot up just as AOL's did when they raised their "flat" fee by $2.

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