SCN: hmmm

patrick clariun at yahoo.com
Tue May 29 12:27:33 PDT 2001


Financed by taking a loss. Companies finance things that are a loss in
themselves, but are a value-added item to the whole of the company.

They are providing something for free to the public, they are taking a loss on
it since it does not bring in any money, but on the whole it adds value to the
company. 

Apple provides a lot of free stuff with it's iTools feature. You can get free
online disk space, free email address, free web site space (with no ads). This
is something that brings no direct money to Apple, but brings them money
indirectly. If people want iTools, the will get a newer Mac or OS 9 which they
will need to run iTools.

Patrick
--- "J. Johnson" <jj at scn.org> wrote:
> On Tue, 22 May 2001, Doug Schuler wrote:
> 
> > I wanted to add my two cents.
> > 
> > We see far too many ads already and, in my opinion, it's the
> > ads and the commercialization that are killing / will kill the
> > Internet.  If ads are the answer then what the heck is the question!
> 
> The basic question is:  how are "free" services to be financed?
> 
> I think the argument raised in the original article would have been much
> clearer if it had focused more specifically on, say, how are search
> engines to be financed.  E.g., who will pay Altavista's bills?  If not the
> advertisers, then who?
> 
> === JJ =============================================================
> 
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