A site that sells 100$ bills for 95$. The losses are manageable – and think of the revenue!!! I will build up a loyal following, a subscriber base of, no doubt, millions of unique visitors. Each purchaser will have a unique log-in name, and I am certain that I will be able to show that visitors return to the site. If I can get one million registered users to log on every day, my revenue will skyrocket to 665$ million per week.
By the end of the first month revenue will probably lurch into the tens of billions. Then I will raise the price a bit – perhaps to 96$ – and tout my earnings improvement – losses narrowed by 20%.
The following month I will again raise the price m, to 97$ this time narrowing my loss by 25 per cent – quite an improvement. I will take the business public within three months. With losses of a mere 3% I should net at least 100$ billion.
Written in 1999. Truer today than it was then (pre .com burst) The fact that Amazon pulled it off doesn’t make it less insane. Bezos brilliance – but please don’t try this at home.