Re: Brave New World?

From: Gordon Hudson (gordon@hostroute.net)
Date: Wed Jan 07 2004 - 17:14:36 EST


----- Original Message -----
From: "Adam Selene" <nospam@vguild.com>
To: <discuss-list@opensrs.net>
Sent: Wednesday, January 07, 2004 8:41 PM
Subject: Re: Brave New World?

> > Second, all Internet services with the exception of pure access (which
> > is network not application) are just that. Services. Services are
> > generally not bought on price.
>
> I don't even charge customers for domain names. It's akin to a law
> firm charging for faxes, disgusting. They pay for application hosting/
> management (at $6-24k per year) and/or development (at $50-250k per
> project), and that's it.
>
> Why you'd want a $2/year customer is beyond me. Do their site too or
> send them packing to GoDaddy.

A business with 10,000 customers paying $100 year is more stable
than a business with 2 customers paying 500,000 a year.
The business with 10,000 customers can afford to lose many customers
before it becomes non viable.

I learned this a long time ago when I was a consultant in professional
fundraising.
Many organisations I was called into had 2 big donors and had lost one.
By broadening out the range of "customers" they became more stable in the
longer term.
The same is true of any business.
I am not saying that going for big contracts is wrong but it does make a
business vulnerable.

Regards

Gordon Hudson
Hostroute.com Ltd
www.hostroute.net

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