Re: ONLINE-ADS>> Zapata is nuts...

Coyne, Dave (DCoyne_at_cnc.com)
Fri, 17 Jul 1998 12:54:43 -0500 (CDT)

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Re: Zapata is nuts:

Is Avie Glazer nuts or merely misunderstood? Richard is certainly
correct that a web site's largest expense is content development *at
first*. What I believe Avie intended by his comment is that any
website, in order to be successful in the long term, should have a
marketing budget that is larger than their production or other budgets.
Let's look at some stacked math: if you are a profitable web site, your
advertising revenues exceed your marketing budget (positive ROI) and the
rest of your expenses as well. Ergo, your marketing budget would have
to exceed your production budget. In time, I suspect we will see that
sites with such a budget ratio outlive others. Promotion can, after
all, compensate for a weak product. Take any 1st generation Microsoft
product (or Windows 3.1), for example.

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