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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel? -- Ignore unavailable to you. Want to Upgrade?

To: Brooks Jackson who wrote (567)	12/9/1998 12:01:00 PM
From: TLindt	Respond to of 20297

There are even more question to go with the origional. Lets say you are a Bank and paying $5.00 a head a month for paper Checkfree service to offer your customers....as the customers biller move to e-bill...will CheckFree be cutting up the e-bill revenue stream with the bank? I think they should....because that's how portal agreements work...the Vendor/Supplier of the service usually pays the portal compensation...one part of that mix is for Branding, and the other part is a transactional royalty if you will based on volume. The Branding part would be out most likely, as they Banks what you to think they do the Magic. But I could see where a royalty should cancel out the $5 fee over time on the paper end of CheckFree, and that in the end the Banks too would make a profit on this service. In addition I think the Banks the best salesmen to potential presenters....ie they should get an over-ride comission % on their billing customers they turn over to CheckFrees Services. Best way to make this work long-term is to feed the supply chain with some of that cash....cut the Bank partners in for a % of the revenues and this thing would move a lot faster, meet with less resistance, and be more secure going long term. 20-25% is not out of the question for starters...and then tier it down from there. Banks Love Fee Income. If they are not paying the Banks...they should be...IMO.