eBay - Superb Internet Business Model Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : eBay - Superb Internet Business Model

EBAY 93.03

-3.2%

Jan 16 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Doug Fowler who wrote (854)	11/22/1998 8:42:00 PM
From: mod	Read Replies (1) of 7772

Can somebody tell me what is wrong with my math? According to eBay: <<Over 12,000,000 page views per day!>> So if they started selling banner ads, one per page, at a rate of $20 per thousand (a common banner ad rate), I get potential revenue of $240,000/day or $87.6 million annually. And if you assume multiple ads on a page (let's say 3), they get $262.8 million annually. And if you (conservatively, I think) assume they will double their page views in a year, you could double that number to over $500 million by the end of 1999. And if growth quadruples in 2 years, we are talking a run rate of over $1 billion/year! If I am doing the math correctly (someone please correct me if I'm wrong somewhere), eBay could drop their fees and switch to an ad-based revenue model easily, and be quite profitable. Maybe even enough so to support their current market cap. Dennis

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next