To: REW who wrote (30615 ) 6/9/1999 12:16:00 AM From: Suzanne Newsome Read Replies (2) | Respond to of 44908
I must come out of lurking mode briefly to correct information I presented in my post #30294 in which I attempted to project revenues from the NetTaxi deal. That information is summarized here: ***NetTaxi Gross Profit Projection*** NetTaxi web site has 90,000,000 page views per month The average visitor views 10 pages 9,000,000 people visit the web site per month Assume only 7,000,0000 people visit the site 3-5% of site visitors are looking for music Assume 3% or 210,000 people click on MyMusicCard site Of the 210,000 visiting the site, 25% or 52,500 actually make a purchase Of the buyers, half (26,250 people) only buy one CD ($26,250) The other half of buyers buy 1 CD and a Music Card [$26,250 + $5(26,250)] or $157,500 Total monthly gross profit is $183,750 Annualized gross profit is $2,205,000 In a very brief conversation with Paul Henry this afternoon, I asked him about the details of the NetTaxi deal. He said that wasn't public, and he couldn't tell me. I told him I had read all kinds of details all over SI written by someone who doesn't own any shares. He begrudgingly gave me a few details. The card split is $5/$5. Every NetTaxi member gets a free 3-unit promo card. The CD revenue is split. I would conclude that the number of NetTaxi people going to the MyMusicCard site would be much higher that the 3% I assumed in my projection because of the promo card. People will be curious. CD sales will probably be much higher. Card sales will possibly be lower. Profit from CD's will be less due to revenue sharing. Commentary: Sunday morning I posted to Sword that rather than bash, why didn't he respond to the revenue projections. Sunday mid-morning he posted he would try. At 11 PM Sunday night, Sword posted a long message (30353) which was a scathing attack on the NetTaxi deal. He quoted the entire PR and highlighted several parts. He then went back and came up with the most amazing conclusions based on these highlighted sections. It was a classic case of adding 2 + 2 and getting 8. I was furious that someone would dream up such BS and post it. I posted 3 times very late Sunday night with smoke coming out of my ears. After calming down, it became apparent what had probably happened. Sword had to make a phone call on Sunday. My source doesn't work weekends, but his apparently does. From this conversation, Sword gained some unique insight about the NetTaxi deal in addition to details that no one else seems to know. He mentions the "transaction point", i.e. the time and place at which the $10 is paid. He talks about a sinking fund that must be established. He suggests $.25 as an amount TSIG might have to pay NetTaxi for every CD sold. He refers to things that I have not seen mentioned on this thread. It was almost as if he had been talking to a salesman. Did he talk to a NetTaxi person? The information Sword presented revealed pretty deep understanding of the TSIG inner workings. Did he talk to TSIG management? The challenge was extended, accepted, and fulfilled all on a Sunday. Who would Sword be able to talk to on a Sunday that could provide the analysis and insight into the deal that his post revealed? Paul Henry never did tell me how much the revenue split on the CD's was. If someone were to call him tomorrow and ask, it wouldn't shock me to find out it is exactly 25 cents—the very same figure Sword pretended to pull out of the air in his post. At one point I thought I should apologize to Sword because he was right and I was wrong. However, if he had brought out the same points and attributed them to his source, my blood pressure wouldn't have been 300 over 500 Sunday night. It was his pretense of getting all his incredible information from the PR that infuriated me because I thought he was adding a liberal dose of bashing. So, Sword, say hello to Rich for us. Regards, Suzanne