BRANDI JASMINE <brandi_at_brandijasmine.com> WROTE:
>You missed my point. I think we all agree that it sucks
>when people raise their prices, we'd all like them to be
>lower. But if they can do that because demand is high
>enough to justify it, they are within their rights to do
>so.
>That's the way it is done across every business
>model. Demand goes up, so does price. I suspect something
>analogous is going on at Goto.
>Goto is raising prices out of
>high demand, not, like in some other sectors raising or
>setting prices on previously free services out of a panic
>reaction to poor market conditions (where the case for
>poor judgement is stronger).
Hi Brandi,
I just wanted to make a quick comment on
your price / demand argument. GoTo is definitely not
increasing their prices because of high demand, rather
they are doing so because of lack of demand. Demand
will naturally increase the prices at GoTo because
companies bid on the search results. High demand would
naturally increase the price from 1 cent to 5 cents to
$2 if the demand is high enough. They increased their
prices partially because there is *not enough* demand
for many keywords!
There is no finite amount of space on GoTo.com
- bidded keyword results will span multiple pages.
Raising the minimum from 1 cent to 5 cents is an attempt
to get more money from the keywords that there isn't as
much demand for (where competition for the keywords hasn't
raised the demand to 5 cents or more). Take care,
--Kyle Yamnitz
EdScope, L.L.C.
Expanding the Scope of Education:
http://www.EdScope.com
Received on Wed Mar 28 2001 - 08:43:18 CST
