But from an accounting perspective, no revenue is directly generated by them. Thus, no revenue to share from a cost center.
So how much revenue do you attach to your electric bill? There are a million subjective ways to attach revenue to cost, and every business will have different nuances in the way they do it. That's what makes this proposed revenue-sharing model completely impractical. Darin. ----- Original Message ----- From: "Kevin Bilbee" <[EMAIL PROTECTED]> To: <declude.junkmail@declude.com> Sent: Thursday, July 20, 2006 1:00 PM Subject: RE: [Declude.JunkMail] Declude 4.3 A book on accounting is not necessary. I am very familiar with cost centers. It is a fact that removing cost centers can cost a business revenue. So if a small ISP removes spam filtering from their offerings then their customers that want a one stop shop will go elsewhere. It is a balancing act. What cost centers help you retain customers? Which ones will get you new business? Electricity is also a cost center but without it you would not have any revenue generating services to offer! Kevin Bilbee > -----Original Message----- > From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of > Darin Cox > Sent: Thursday, July 20, 2006 6:37 AM > To: declude.junkmail@declude.com > Subject: Re: [Declude.JunkMail] Declude 4.3 > > Kevin, > > It would probably help for you to take a course or read a book on > business accounting. There are cost centers, and revenue-generating > centers. > Sometimes it may be a judgement call as to where one item goes, as in > spam filtering, but it is the business's call as to how they structure > their pricing model, what is considered revenue-generating, and what is > considered a cost. External parties have no business deciding what > should be considered revenue-generating for any given business. > > Also, I think everyone is missing the point Matt has made several times > of how do you decide how much revenue should be attributed to > spam/virus filtering. How do you attach a value to it's contribution > to keeping customers or obtaining new customers? Or a relative value > of the service against other services like base email hosting, web > hosting, traffic reports, control panels, database hosting, media > hosting, tech support, maintenance, etc. Again, it's a judgement call. > And since most businesses have different mixes of costs, pricing > models, etc. it would take looking at each business individually to > come up with some sort of revenue-sharing model. One size would most > definitely not fit all. > > In short, while this idea may be "creative", it's not the least bit > practical. Revenue-sharing should be a misnomer, and pricing should be > by server, domain, or account/alias. For a pricing model to be > successful, subjectivity needs to be removed so that the factors > determining it can be easily quantified. > > Darin. > > > ----- Original Message ----- > From: "Kevin Bilbee" <[EMAIL PROTECTED]> > To: <declude.junkmail@declude.com> > Sent: Wednesday, July 19, 2006 5:54 PM > Subject: RE: [Declude.JunkMail] Declude 4.3 > > > No they do not impose a revenue sharing model, but toilet paper is > still a > consumable that indirectly makes restaurants money by keeping its > customers > happy. When it is there no one notices, when it is not customers > definitely > know and are put off. > > My comments are not about the revenue sharing but that email is a lost > leader for an ISP. Lost leaders simply make business money by keeping > the > customers happy purchasing other higher margin products. Otherwise > there > would be no reason to sell a service for less than it costs to > maintain. > > > 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. > > > > > > > > --- > 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. --- 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.
