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Technology Stocks : America On-Line: will it survive ...?
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To: Glenn D. Rudolph who wrote (11448)10/13/1998 11:55:00 AM
From: Steve Robinett  Read Replies (2) of 13594
 
Glenn,
Outstanding article. (I'll repeat the URL for anyone who missed your post:
cbs.marketwatch.com
This is the best piece I've seen on AOL's e-commerce and it's potential problems. Since the Tel-Sav deal, I've suspected many of the companies going for AOL's e-commerce deals were desperation plays, companies hoping that AOL's customer base would save a leaky boat. But from AOL's point of view, why not do these deals. They get a chunk of cash upfront. If they get stiffed on later payments, they just replace the customer. I used to do business with a radio station that would sell a group of commercials for half the money in front. They would air the commercials, then chase most of their customers for the other half of the money. They priced the commercials so they made money even if they didn't collect the second half of their fee.
Again, thanks for spotting this one. Definately worth reading.
Best,
--Steve

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