Do you continue promotions on a site/biz - w/ net loss? - GoFuckYourself.com

Steen2 · 03-22-2005, 03:01 AM

If you are spending advertising dollars on a site, tryign to acquire customers/leads/data and you're currently not making a profit, do you continue for long term benifit?

Ex.

Owner is paying avg. $.3 per signup he can get to his new site "hotmail".
The avg. user makes him $.03/yr.

Four years down the road, MS pays $1.4/per user.

These numbers are fake, just curious on your thoughts.

Would you try to rapidly grow a site at a short term net loss for long term gains? Be it outright sale, or just converting at a later date.

Discussion is encouraged!

Steen2 · 03-22-2005, 03:15 AM

Business forum and all the business threads = ignored

JFPdude · 03-22-2005, 03:19 AM

Quote:

Originally Posted by Steen2

Business forum and all the business threads = ignored

You forgot to put DRAMA or (pics) in the title.

And yes it sometimes pays off to operate at a loss for long term gain. Most businesses due this at the start.

Look at "Ask Jeeves" sold for almost 2 billion dollars yesterday. How long will that business be in a loss till it can turn a profit?

Steen2 · 03-22-2005, 03:24 AM

Quote:

Originally Posted by JFPdude

You forgot to put DRAMA or (pics) in the title.

And yes it sometimes pays off to operate at a loss for long term gain. Most businesses due this at the start.

Look at "Ask Jeeves" sold for almost 2 billion dollars yesterday. How long will that business be in a loss till it can turn a profit?

I agree.

And it's my intention for certain ventures. However some have a hard time seeing past "net loss" from the get-go.

This is just so common in B&M, with online we have much smaller initial investments so an ROI is in most cases easier to grasp.

Major (Tom) · 03-22-2005, 03:25 AM

many business operate at cost for years at times. Its when the business cant float itself and you have to pay out of pocket each month for an extended period is when you are in trouble. Sometimes you have to have patience to see the big picture.

Duke

JFPdude · 03-22-2005, 03:27 AM

Quote:

Originally Posted by DukeSkywalker

many business operate at cost for years at times. Its when the business cant float itself and you have to pay out of pocket each month for an extended period is when you are in trouble. Sometimes you have to have patience to see the big picture.

Duke

This is why the tax laws allow for 5 years of claiming a loss. Sometimes it takes that long to gain the first profit.

Slow and steady builds a stronger business.

03-22-2005, 03:01 AM	#1
Steen2 Confirmed User Join Date: Feb 2004 Location: Vancouver, Canada Posts: 7,662	Do you continue promotions on a site/biz - w/ net loss? If you are spending advertising dollars on a site, tryign to acquire customers/leads/data and you're currently not making a profit, do you continue for long term benifit? Ex. Owner is paying avg. $.3 per signup he can get to his new site "hotmail". The avg. user makes him $.03/yr. Four years down the road, MS pays $1.4/per user. These numbers are fake, just curious on your thoughts. Would you try to rapidly grow a site at a short term net loss for long term gains? Be it outright sale, or just converting at a later date. Discussion is encouraged! __________________ ICQ: 2262.73945

03-22-2005, 03:15 AM	#2
Steen2 Confirmed User Join Date: Feb 2004 Location: Vancouver, Canada Posts: 7,662	Business forum and all the business threads = ignored __________________ ICQ: 2262.73945

03-22-2005, 03:25 AM	#5
Major (Tom) Boomer Woffen Industry Role: Join Date: Nov 2003 Location: Null Posts: 30,571	many business operate at cost for years at times. Its when the business cant float itself and you have to pay out of pocket each month for an extended period is when you are in trouble. Sometimes you have to have patience to see the big picture. Duke __________________ My mother said, to get things done You'd better not mess with Major Tom