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Technology Stocks : Autoweb IPO 3/22/99 AWEB -- Ignore unavailable to you. Want to Upgrade?

To: DAY TRADER who wrote (159)	3/26/1999 7:34:00 AM
From: Pluvia	Read Replies (1) \| Respond to of 696

BUYER BEWARE AWEB Business Plan is Ridiculous - Info Regarding Loss of Dealers... From the AWEB Prospectus.... ************************************************** We must reduce our high member dealer turnover. To maintain and increase our network of member dealers, we must reduce the rate of turnover of our member dealers. Commencing in February 1998, we introduced a new "pay for performance" pricing model and began actively to convert our existing member dealers to this model. Prior to that time, all of our member dealers were on a subscription model under which they paid a fixed amount per month regardless of the number of purchase inquiries that we provided to them. During 1998, we lost approximately 60% of the member dealers that we had at the beginning of the year and converted approximately 30% to the new pricing model. As of January 25, 1999, there were approximately 105 member dealers (approximately 3% of the total) that were on the subscription model, but we anticipate that there will be almost no subscription-based member dealers by the end of 1999. During 1998, we lost approximately 22% of the performance-based member dealers that we converted or with which we first entered into a contract in 1998. We rely heavily on member dealers. We derive the majority of our revenues from member dealer fees (payments from member dealers for each consumer inquiry that we provide to them), and we expect to continue to do so for the foreseeable future. Member dealer fees represented approximately 85% of our net revenues in 1997 and approximately 70% of our net revenues in 1998. ********************************** This Company is a joke IMO. Their business plan is failing miserably and yet internut idiots buy the stock on blind faith. Don't get caught holding the bag on this one - this business plan will never work IMO. Good Luck Steve