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Subject:  Re: Thank you for ten years and counting. Date:  2/4/2002  12:56 AM
Author:  LostInThought Number:  24181 of 92039

Hi badsin,

But you say the fees aren't factored into your 2002 revenues - that doesn't sound like it's going to make the boards standalone profitable anytime soon
Quite a leap there ;-)

On the one hand, we have David thinking 'We planned a budget for 2002. In that budget, we didn't factor in any subscriptions. However, we were confident that, with things as they stood then, the Fool site would be financially viable.'

On the other hand, we have your assumption that, because they didn't factor subscriptions into the 2002 budget, it must be impossible for subs to make the boards profitable.

I can't see the direct relationship myself. The budget was for the whole company. They are now going to charge subs. How does the budget for the whole company decide how much money it costs to run the boards? If enough people sign up, the boards will be profitable. If not, they won't. Whether the boards are profitable or not does not affect the viability of the whole company, because even without the subs, it was going to be OK.

So, worst case was no subs, and the budget said they would be OK. That hasn't happened, as people have signed up. So every sub makes the company stronger, and brings the boards closer to profitability.

Look at it this way- even if the boards are not profitable, the subs will be able to finance changes that could not be justified before, because they make cash available whilst making the financial position of the company as a whole no worse. However, I'd be willing to guess that they will be profitable without having to make unreasonable increases in the future.

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