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To: Craig Richards who wrote (29200)12/7/1998 11:13:00 AM
From: Glenn D. Rudolph  Respond to of 164684
 
Do you see the potential for Amazon to make a profit from this business? Doesn't this
change your arguments that Amazon has no chance of being profitable? If they make a
few cents per re-directed sales lead, they could turn profitable very quickly. They sold
$14 million or so of CDs last Q. If they had given all of this business to CDNow for a
1% referral fee, they would have reduced their losses instead of increasing them. I think
this is the path they need to take to turn profitable.


Craig,

I do not have time to go into detail now. I do agree this is better for them. However, YHOO,XCIT, etc. are doing the same thing. My opinion is most companys will go on a portal but I have not really thought it through at this point.

The prior model would not work. I was sure of that. I would have to think about this one.

Glenn