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To: FlatTaxMan who wrote (35768)	6/22/2000 8:32:00 AM
From: ztect	Read Replies (2) \| Respond to of 40688

FTM.......... I have not avoided the questions. I have had you on ignore because of all your agenda nonsense. Bartering has limitations. Many marketing costs and most operational costs cannot be paid with PNL's services...thus the continued need for yet another "round of financing"... When GZ flies around the Globe, does he pay the airlines by telling them they can advertised for free on PNL-TV? Maybe one day he could, but today he has to buy that ticket. Bartering also doesn't necessarily enhance future revenues. With many internets, a lot of bartering has been in the form of reciprocal advertisement that theoretically will drive traffic to a site through banner or hard copy ad positioning and placement. In reality, most banners as mass marketing have very very low rates of return in generating new customers. GZ noted that there are 70,000 user sessions. Are these 70,000 sets of eyeballs or individual impressions? Whatever the true number of users is, they have NOT even been purchasing the monthly rates to get behind the wall to the database and transaction services. This is clearly reflected in the lack of revenues, excluding bartering, for the 10k and the 10q. (Geeze Allen probably accounts for 20,000 of those user sessions alone...just kidding...VBG). Thus "bartering" if included as a line item should have a big asterisk next to it, basically explaining that for goods and services received, goods and services had to be given. Plus an explanation of the nature of these goods and services with an indication of how these exchanges have or will enhanced PNL's value. To loudly proclaim that PNL had rev's of $1.1 mill, w/o noting very clearly that $1.05 of these "revenues" are derived per the value associated with received bartered goods and services, is simply bogus. I consider it hype and analogous to CDNow pronouncing that CDnow had $120mil in revs w/o clearly explaining that included in that figure were $114mil for the 'cost of goods'- meaning real margins were only $6mil which required over $40 mil in advertising to attract. So personally I'm just tired of seeing all this bull shiet accounting with Inets. Obviously the IB's and VC's weren't very impressed, since no prolonged draw down amounts for protracted or sustained funding have been forthcoming. Actually according to GZ, in his 5/26 note to share holders, talks with IB's had stalled, stopped and were hopefully re- beginning GZ's term the "next round of funding" does not sound like IB financing, which would provide a large dollar amount to be drawn from. Sounds to me like another small PP, plus rumors I've read on these boards seem to suggest the selling of preferred shares. One round to be succeeded by yet another round causing dilution while paying new executives with options causing more dilution. Maybe y'all should ask some questions, and get answers rather than exchange insults, and fears of "hidden" itineraries. Thus they haven't been earning any $$$$, or not enough to impress anyone with the ability to offer sustained financing. Yes I noted the b-model changed. It changed from having a clear path to profit to one that was claiming not to be in a "revenue phase" of development again per GZ's own words. The model morphed into a "volume" model. Volume models have consistently proven to be ineffective. More money has to be spent to generate the volume (ie. individual impressions), than is derived from the traffic generated or the rates of diluted advertising space. Now GZ wants to do more global hopping to "activate" an international marketing force to actually build the markets (by his own admission) in order to tap these markets. Sometimes in business it is better not to have such grandiose ambitions. Actually the word FOCUS is very important. Not sure if GZ has ever heard that word. Seems to be GZ's eyes are bigger than his stomach and such an ambitious plan may be in the "non-revenue" phase for quite some time due to its lacks of focus and need to generate volume. GZ was "...confident that the numbers will follow..." before with memberships. Well, those numbers didn't. Will GZ's crytal ball again fail him? Only time will tell..... Thus the question is if GZ had more money, would he simply burn more? Again the web site and it agglomeration of content has been impressive, but still of the 70,000 user sessions (not necessarily 70,000 users) per month, none appear to want to pay for much of anything- monthly's or transactions. SO despite these 2,300 user sessions per day (how many are simply share holders?), all of PNL's multiple streams appear to be waiting for some rain, because thus far and for the foreseeable future no rain (spending customers) appears to be forthcoming to generate the flows necessary to demand higher advertising rates or generate any real revenues. Again, to date the IB's appear to have reached similar conclusions....... Anyway, got some real work to do...... z (spelling not checked) For further investigation.... Options and Executive Compensation 101 Message 13924452 Options and Executive Compensation 102 Message 13924461