UKNM: Who wants to spend £90million?

[Gary Pharo]

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: ownerchinwag [dot] com [ownerchinwag [dot] com]On">mailto:ownerchinwag [dot] com]On Behalf Of Alex

> Dunne

> Sent: 19 May 2000 14:19

>

To: 'uk-netmarketingchinwag [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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