Posted by: Anonymous Coward
on July 11, 2003 08:45 AM
You didn't read the articale did you? The $9.95 was what the consume pays not what they get.
Here's an example of a quick breakup of $10: *ISP kickback - $3 *Game Developers Kickback - $2 *Operational Overhead/Loss/Tax - $3 *Amount they get - $2
So what he's saying is he needs $2 million a month to break even.
Here's a quick breakup of some monthly costs: *Bandwidth + Connection ~ $250,000 *50 Staff @ $3000 a month ~ $150,000 *General Expecnces (rent,insurance) ~ $300,000 *Marketing ~ $300,000 *RnD ~ $250,000 *Licences (exclusive content) ~ $250,000 Total = $1,500,000
That would mean he'd be making about $500,000 which isn't alot.
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Re:Another ".com" waiting to bust?
Posted by: Anonymous Coward on July 11, 2003 08:45 AMHere's an example of a quick breakup of $10:
*ISP kickback - $3
*Game Developers Kickback - $2
*Operational Overhead/Loss/Tax - $3
*Amount they get - $2
So what he's saying is he needs $2 million a month to break even.
Here's a quick breakup of some monthly costs:
*Bandwidth + Connection ~ $250,000
*50 Staff @ $3000 a month ~ $150,000
*General Expecnces (rent,insurance) ~ $300,000
*Marketing ~ $300,000
*RnD ~ $250,000
*Licences (exclusive content) ~ $250,000
Total = $1,500,000
That would mean he'd be making about $500,000 which isn't alot.
Remmeber things allways cost more than you think.
That's just a quick example but you get the idea.
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