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Technology Stocks : OnSale Inc. -- Ignore unavailable to you. Want to Upgrade?

To: StaggerLee who wrote (926)	3/18/1998 9:59:00 PM
From: Mo Chips	Read Replies (1) \| Respond to of 4903

Staggerlee, You didn't reply to my last message to you, because you agree? Anyway, people here seem to be very confused about ONSL's business. ONSL has, I believe, 4 distinct revenue sources. They are: 1)Commission Sales-auctions of someone elses merchandise for a fee, onsl never takes title and gets in the range of 10 to 15% of the sale. This was their primary business in the beginning and has little costs associated with it. 2)Owned Merchandise Sales-Auctions of merchandise that onsl takes title of and bears warehousing and obsolesece risk on. The biggest part of their business today. Sales typically in to 10% margin range. 3)Exchange services-onsale gets a fee, 1-5% on merchandise that other people want to list and sell. This is basically their site to bring buyers and sellers together. Onsale does little for this other that provide the site and collect a small fee. 4)Advertising revenue-pretty obvious what this is and at a 100% margin... So, as you can see, ONSL has diversified quite a bit, and continues to do so. These various revenue sources bring in greatly different margins and have wide ranging growth opportunities.... mo