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To: Spots who wrote (495)2/11/1998 9:50:00 PM
From: Sr K  Respond to of 32873
 
You don't need a continuing stream of revenue; you need a continuing stream of income/cash. There are periodicals and organizations that charge a lifetime fee and survive quite well. The revenue can be accounted for like an option; it is deferred revenue and only accrued as income (taxed) over the estimated average subscriber's membership term, as their accountants determine. It is a taxwise structure. In addition, the Dryer's get to know statistics that may have leading value similar to volume preceding price. One way or another, if they invest their front end cash flow well, it's not a flawed economic model (and security investments also lend opportunities to offset gains with losses and to defer the biggest gains).