I really should listen to the vcall before I comment BUT, my feeling is that regardless of the value of the rebates, most prospects will realize that they are not really getting something for nothing and that, sooner or later, they are going to be paying for the privilege of using the site. I expect NM is putting the best face on it but, bottom line, fees are fees.
There is a good article on this in the February issue of BUSINESS 2.0 (page 94) ... Big, sophisticated, media players, like Time Warner, Bertelsmann AG, Disney, learned ... "The first shock was that people wouldn't pay for information on line. (Unless it was about money or sex, and even then it was a struggle, given the huge number of free alternatives.) This won't change. ..... Why should they pay you to spend time on your site? If anything, it should be the other way around--- because people's attention is valuable. Advertisers crave it, and increasingly, consumers are aware of this."
I believe the same thing is true for shopping sites. There are a number of free search sites that will find the best prices and sites for you to get anything you want already.
The real bottom line, the price of NM has not matched other internet retail commerce stocks. As I say, I'm very long NM too. I won't be for long though unless the stock performs. |
