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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Gary Korn who wrote (3621)	4/29/1998 12:04:00 AM
From: Craig Richards	Respond to of 164684

Now let's say Amazon gets 5% of the price of each vacation sold. At that point, the company might be willing to treat bookselling as a loss leader, making up the difference on referrals, which have 100% gross margins. This sounds great for AMZN, until you realize that the travel site is treating its travel business as a loss leader, making up the difference by receiving referral fees for recommending Amazon's travel books to its customers. <g> No wonder there's so much investment in Internet businesses, everybody makes money by referring its customers to other Internet businesses.