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AM: FW: Pricing Suggestions

To:     <ad-market@netpreneur.org>
Subject:     AM: FW: Pricing Suggestions
From:     "Mitch Arnowitz" <MArnowitz@morino.org>
Date:     Wed, 11 Jun 1997 20:50:53 -0400

George Atkinson <gatkinson@tradecompass.com> wrote:

Here are my 'two cents' for what its worth:

. At Trade Compass (www.tradecompass.com), the leading web site for
international trade and commerce, through we are doing revenue sharing
deals, I'd have to say that we're trying to avoid three-way deals if
possible.  I don't think I would be inclined to do a deal that included an
ad sales component in the deal as well.  We are currently represented by
one of the top three ad sales companies in the country, Cox Interactive (ad
sales rep firm that reps all Cox Media properties, Prodigy, SportsLine,
Tripod, Entertainment Tonight, and other high-profile sites), and we know
how difficult it is in the current environment to sell advertising on web
sites.  Ad sales revenue is hard to come by...even for sites like Yahoo. 
Therefore, for software development, I would try to receive cash
compensation on an hourly basis or on a per-job basis; perhaps combining a
cash deal (emphasize the cash component) with a back-end revenue deal...but
would avoid a deal with three parties.  In general, revenue sharing deals
are 'long term' ways to get paid.  If Ann is willing to wait a long time to
get paid for customizing her software, then revenue sharing is OK.

George Atkinson
Vice President, Marketing
Trade Compass
1510 H. St. NW, Suite 500
Tel:  202-783-4455
Fax:  202-783-4465
gatkinson@tradecompass.com

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