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Subject: UKNM: Who wants to spend 90million?
From: Gary Pharo
Date: Mon, 22 May 2000 11:23:37 +0100

Alex

All good points, but I was really questioning why a company that is
operating *electronically* can spend this level of money.

Surely the whole point of running an e-business (as the thread a couple of
weeks ago) is to reduce your operating costs and improve the efficiency of
the operation.

As for the cost of developing the site.....my understanding is that they
paid very little if anything for the actual hardware......which begs the
question of how much Organic charged to develop the site?

The only obvious signs of spend were the pitiful ad campaign.

I can certainly see how you could spend multi-millions running an
international business - I just fail to see how or why the same money could
be spent with an e-business.

Rgds
Gary

> -----Original Message-----
> From: owneratchinwag [dot] com [owneratchinwag [dot] com]On">mailto:owneratchinwag [dot] com]On Behalf Of Alex
> Dunne
> Sent: 19 May 2000 14:19
> To: 'uk-netmarketingatchinwag [dot] com'
> Subject: RE: UKNM: So, any techys from BOO like a job?
>
>
> $135mil can go pretty quickly in a year for a multi-national
> startup. Maybe
> your burn rate is $13mil/month because you have to:
>
> 1. Buy/rent machines, equipment, office space for your infrastructure
> 2. Structure and operate fulfillment centers, even if you outsource
> 3. Run marketing campaigns and pay fees to companies that create them
> 4. Recruit, hire, train and pay 400 staff plus multi-national benefits
> 5. Manage your distributed operations (including travel costs)
> 6. Build a massive multi-lingual, e-commerce, 24X7, high-concept website
> 7. Maybe pay more for some services 'cuz you need them, like, NOW!
> 8. Multiply all this by n number of countries in which you
> operate/promote/sell.
> 9. And of course, all those prepaid DHL 'free return' slips that went
> un-used.
>
> Taking a different perspective, $135mil is only a 2cent movement in MSFT's
> stock price.

[Sam says: msg chopped...]


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Replies
  RE: UKNM: So, any techys from BOO like a, Alex Dunne

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