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To: Chuzzlewit who wrote (210)	2/23/1999 8:03:00 PM
From: MaryinRed	Read Replies (1) \| Respond to of 419

I am still amazed...that I have not been able to explain this to you so that is makes sense... Must be failing somewhere here....but let's try again....smile.. Economic profit... Gross sales - cost= gross profit Gross profit - cost of getting the sale = net profit. AOL gross sales = subscriber fees, ad revenues, e commerce/commissions on ecommerce AOL cost= infrastructure, content, service/help (being minimized by Internet access vs phone, advertisers providing content, and software change (4.0_ which require less service/help) Cost of getting the sale= both consumer and advertiser: marketing expense/mailing out those cds, advertising...(being minimized as WOM (word of mouth) and advertisers...vieing to advertise/provide content does that make it ANY clearer...?...I am at a loss as to how to explain it to you.... the only analogies that make sense...is to have you sit in front of your tv (which is broadcast free for you) and have you "pay" for a pay per view (subscriber fee), and view an ad (eyeballs ad revenue) then have you order something off "home shopping network" and say CBS gets a cut of that....and then have the tv so easy for you to use...that the networks/cable guys no longer have to walk you through how to use it..... that's about as simple as I can make...it..... Chuzz...in terms of cash flow...think of it ...as an incredibly profitable business with cash flowing in from all sides now...and less money having to go to "make the donuts"....due to stronger technlogy and more "mass"... Case just on tv: netcognizance.com smile.............................M A R Y