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Old 05-02-2005, 10:07 AM  
Pleasurepays
BANNED - SUPPORTING TUBES
 
Join Date: Aug 2002
Location: I live in a pile of boogers
Posts: 11,913
Quote:
Originally Posted by KRL
Well it is possible when you build up large sites to have great revenues but not so great profits. You see this a lot when companies transition from profitable small operations and then go "grand" scale and the next thing you know they go belly up.

Mostly this occurs from bloated staff costs and overhead from non-essential corporate spending like traveling on private jets, buying luxury cars for execs, throwing lavish parties, non-productive marketing, etc.

I've seen many companies in the $1 to $10 Million range being just as profitable or profitable for the owner as companies doing hundreds of millions.

So just cause a significant company could do big revenues you have to see the bottom line to know what's really going on.
i think history will prove you right. this is a classic case of what you are talking about. many were shocked when they took down the banner farm and said it was a mistake. i think it probably was as well.
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