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2HousePlague · 04-09-2005, 04:50 AM

"A click is a click is a click..."

Or is it?

Let's back up a minute to consider why the notion of so (as scalar values go) "small" an increase in profitabilty (as required in charly's hypothesis) poses such an intellectual hurdle for so many of you.

Perhaps it has something to do with the units.

Personally, I'm all in favor of lovin' and tweakin' a site until it's reached its full conversion potential (as defined by the optimal [highest] convergence of price and recurrence factor).

But, there is NO WAY to extrapolate those lines beyond certain practical limits, inherent and inescapable in the recurring model, as we know it today.

I agree -- you can only ask ONE person to pay SO much per MONTH for access to a DIGITAL ASSET.

But, is it really so difficult to envisage what would, perhaps, given today's understanding of traffic monetization (and accompanying models), be aptly described as a RADICAL departure from the current revenue-against-asset models?

Maybe it is.

But, let me suggest to you a way to scale profitability into the future, that transcends the current "instinctual" limits of both revenue-per-traffic-event, and traffic-event-yield-against-asset.

The psychology and "sell mechanics" of the individual user, paying with his personal CC might just go out the window!

I couldn't tell you when, exactly, but we ARE on the path to a future that won't be limited by the PURELY TRANSACTIONAL margin calculation of an acquired User and that same User's individual revenue result.

It has happened many times in history, in many types of industry -- there is an "inflection point" in the evolution of demand patterns, or production costs, or both, after which the basic definitions of "customer" and "product" change so much, and in such extreme ways that "profit" may be affected by orders of magnitude.

The application of "industrialization" (as a process), as best understood by historians of commerce taking a wide enough perspective over markets and the processes that serve them to TRULY observe the kind of transformation I?m speaking of, has NOT YET happened in the online realm.

We?ve been too distracted by the technology itself, so pervasive in all we do, that we have failed to observe that our ?business? is still very much in its infancy ? as determined by one essential test: a change in the definition of ?customer? that results in both an increase in our ?vertical distance? from the end user AND the insertion of a PROFIT OPPORTUNITY for a (?value-adding?) INTERMEDIARY PARTY, the combined result of which is a higher ?retail? price -- owing to the ?finer management? of demand-against-price by a party more familiar with the customer than we ever could be.

Basically, we?re all still rolling out our pushcarts every morning to find customers for ourselves.

VAR = ?Value Added Reseller?

j-

04-09-2005, 04:50 AM
2HousePlague CURATOR Join Date: Jul 2004 Location: the attic Posts: 14,572	"A click is a click is a click..." Or is it? Let's back up a minute to consider why the notion of so (as scalar values go) "small" an increase in profitabilty (as required in charly's hypothesis) poses such an intellectual hurdle for so many of you. Perhaps it has something to do with the units. Personally, I'm all in favor of lovin' and tweakin' a site until it's reached its full conversion potential (as defined by the optimal [highest] convergence of price and recurrence factor). But, there is NO WAY to extrapolate those lines beyond certain practical limits, inherent and inescapable in the recurring model, as we know it today. I agree -- you can only ask ONE person to pay SO much per MONTH for access to a DIGITAL ASSET. But, is it really so difficult to envisage what would, perhaps, given today's understanding of traffic monetization (and accompanying models), be aptly described as a RADICAL departure from the current revenue-against-asset models? Maybe it is. But, let me suggest to you a way to scale profitability into the future, that transcends the current "instinctual" limits of both revenue-per-traffic-event, and traffic-event-yield-against-asset. The psychology and "sell mechanics" of the individual user, paying with his personal CC might just go out the window! I couldn't tell you when, exactly, but we ARE on the path to a future that won't be limited by the PURELY TRANSACTIONAL margin calculation of an acquired User and that same User's individual revenue result. It has happened many times in history, in many types of industry -- there is an "inflection point" in the evolution of demand patterns, or production costs, or both, after which the basic definitions of "customer" and "product" change so much, and in such extreme ways that "profit" may be affected by orders of magnitude. The application of "industrialization" (as a process), as best understood by historians of commerce taking a wide enough perspective over markets and the processes that serve them to TRULY observe the kind of transformation I?m speaking of, has NOT YET happened in the online realm. We?ve been too distracted by the technology itself, so pervasive in all we do, that we have failed to observe that our ?business? is still very much in its infancy ? as determined by one essential test: a change in the definition of ?customer? that results in both an increase in our ?vertical distance? from the end user AND the insertion of a PROFIT OPPORTUNITY for a (?value-adding?) INTERMEDIARY PARTY, the combined result of which is a higher ?retail? price -- owing to the ?finer management? of demand-against-price by a party more familiar with the customer than we ever could be. Basically, we?re all still rolling out our pushcarts every morning to find customers for ourselves. VAR = ?Value Added Reseller? j- __________________ tada! Last edited by 2HousePlague; 04-09-2005 at 04:52 AM..