Revenue sharing is a sales ploy and for all practical purposes doesn't really exist in the accounting world. For instance, if we pay a royalty or a commission on a sale, that payment goes into expenses on the P&L statement.
I guess you could say that all expenses share revenue, assuming there are less expenses than revenue so some revenue falls to the bottom line as profit. Logically, it follows that if there are more expenses than revenue, then there's just too much darn revenue sharing going on :-) As Matt and others have pointed out, e-mail, spam and virus systems are loss leaders for most ISP's and, as such, they don't generate a line item entry in revenue. Therefore, the revenue share ploy is inconceivable and impracticable. The Declude folks would have known this on the front end if they were in-touch with the many ISP customers among us or, at least, would have the fore thought to ask -- there is no doubt we would have told them. :-) Incidentally, I don't call it negative or lame, when one of our customers tell us what's broken or what won't work - I call that an opportunity. Thanks, Thursday, July 20, 2006, 8:36:47 AM, Darin Cox <[EMAIL PROTECTED]> wrote: DC> Kevin, DC> It would probably help for you to take a course or read a book on business DC> accounting. There are cost centers, and revenue-generating centers. DC> Sometimes it may be a judgement call as to where one item goes, as in spam DC> filtering, but it is the business's call as to how they structure their DC> pricing model, what is considered revenue-generating, and what is considered DC> a cost. External parties have no business deciding what should be DC> considered revenue-generating for any given business. DC> Also, I think everyone is missing the point Matt has made several times of DC> how do you decide how much revenue should be attributed to spam/virus DC> filtering. How do you attach a value to it's contribution to keeping DC> customers or obtaining new customers? Or a relative value of the service DC> against other services like base email hosting, web hosting, traffic DC> reports, control panels, database hosting, media hosting, tech support, DC> maintenance, etc. Again, it's a judgement call. And since most businesses DC> have different mixes of costs, pricing models, etc. it would take looking at DC> each business individually to come up with some sort of revenue-sharing DC> model. One size would most definitely not fit all. DC> In short, while this idea may be "creative", it's not the least bit DC> practical. Revenue-sharing should be a misnomer, and pricing should be by DC> server, domain, or account/alias. For a pricing model to be successful, DC> subjectivity needs to be removed so that the factors determining it can be DC> easily quantified. DC> Darin. DC> ----- Original Message ----- DC> From: "Kevin Bilbee" <[EMAIL PROTECTED]> DC> To: <declude.junkmail@declude.com> DC> Sent: Wednesday, July 19, 2006 5:54 PM DC> Subject: RE: [Declude.JunkMail] Declude 4.3 DC> No they do not impose a revenue sharing model, but toilet paper is still a DC> consumable that indirectly makes restaurants money by keeping its customers DC> happy. When it is there no one notices, when it is not customers definitely DC> know and are put off. DC> My comments are not about the revenue sharing but that email is a lost DC> leader for an ISP. Lost leaders simply make business money by keeping the DC> customers happy purchasing other higher margin products. Otherwise there DC> would be no reason to sell a service for less than it costs to maintain. DC> Kevin Bilbee >> -----Original Message----- >> From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of >> Glenn \ WCNet >> Sent: Wednesday, July 19, 2006 2:01 PM >> To: declude.junkmail@declude.com >> Subject: Re: [Declude.JunkMail] Declude 4.3 >> >> I think one thing that happened here is that the announcement regarding >> ComTouch didn't make it *clear* that it is an *optional* part of >> Declude. >> MY initial impression was that *any* Service Provider who uses the >> version of Declude that incomes ComTouch would be required to >> participate in the licensing of it, by whatever scheme fit the bill. >> Now that I understand it's optional, fine, I don't have to use that >> part. >> >> The toilet paper manufacturer does not impose a per-customer usage fee >> or take a direct percentage of the restaurant's >> daily/weekly/monthly/quarterly/yearly sales. >> >> >> ----- Original Message ----- >> From: "Kevin Bilbee" <[EMAIL PROTECTED]> >> To: <declude.junkmail@declude.com> >> Sent: Wednesday, July 19, 2006 3:33 PM >> Subject: RE: [Declude.JunkMail] Declude 4.3 >> >> >> Then I just do not get it. If revenue would not be lost without it and >> it >> costs you money to provide then what is the business case for providing >> the >> service? >> >> Last I checked business, are in business to make money on capital >> investments/expenditures. Not spend money for things that do not make >> money. >> >> An analogy: Does a restaurant make revenue from toilet paper? >> >> >> Kevin Bilbee >> >> >> > -----Original Message----- >> > From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of >> > Matt Robertson >> > Sent: Wednesday, July 19, 2006 12:57 PM >> > To: declude.junkmail@declude.com >> > Subject: Re: [Declude.JunkMail] Declude 4.3 >> > >> > On 7/19/06, Kevin Bilbee <[EMAIL PROTECTED]> wrote: >> > > So then indirectly it does generate revenue. Because without it >> > > revenue would be lost. >> > >> > Hardly. Carry that argument out to prove how wrong it is. By virtue >> > of the fact that they allow me to be in business in the first place I >> > can expect a knock on the door from Microsoft since they make the >> > server o/s... and Dell since they make the servers. So just being a >> > part of the show lets the pig belly up to the trough. >> > >> > Not in this universe. >> > >> > -- >> > [EMAIL PROTECTED] >> > Janitor, MSB Web Systems >> > mysecretbase.com >> > >> > >> > --- >> > This E-mail came from the Declude.JunkMail mailing list. To >> > unsubscribe, just send an E-mail to [EMAIL PROTECTED], and >> > type "unsubscribe Declude.JunkMail". The archives can be found >> > at http://www.mail-archive.com. >> > >> >> >> >> >> >> --- >> This E-mail came from the Declude.JunkMail mailing list. To >> unsubscribe, just send an E-mail to [EMAIL PROTECTED], and >> type "unsubscribe Declude.JunkMail". The archives can be found >> at http://www.mail-archive.com. >> >> >> >> >> --- >> This E-mail came from the Declude.JunkMail mailing list. To >> unsubscribe, just send an E-mail to [EMAIL PROTECTED], and >> type "unsubscribe Declude.JunkMail". The archives can be found >> at http://www.mail-archive.com. >> DC> --- DC> This E-mail came from the Declude.JunkMail mailing list. To DC> unsubscribe, just send an E-mail to [EMAIL PROTECTED], and DC> type "unsubscribe Declude.JunkMail". The archives can be found DC> at http://www.mail-archive.com. DC> --- DC> This E-mail came from the Declude.JunkMail mailing list. To DC> unsubscribe, just send an E-mail to [EMAIL PROTECTED], and DC> type "unsubscribe Declude.JunkMail". The archives can be found DC> at http://www.mail-archive.com. ---- Don Brown - Dallas, Texas USA Internet Concepts, Inc. [EMAIL PROTECTED] http://www.inetconcepts.net (972) 788-2364 Fax: (972) 788-5049 ---- --- This E-mail came from the Declude.JunkMail mailing list. To unsubscribe, just send an E-mail to [EMAIL PROTECTED], and type "unsubscribe Declude.JunkMail". The archives can be found at http://www.mail-archive.com.
