Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next
Author: maracle Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 36817  
Subject: Goozex's economic woes Date: 10/25/2012 3:10 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Pretty interesting column about how Goozex killed itself with bad economic policies:

Eventually Goozex seemed to realize that it wasn't making enough money off of trades to make maintaining the site worth their while. By my math the company was only pulling in around $180,000 a year*, and after paying taxes, credit card fees, server/bandwidth fees, etc. there's not much left. So it needed a better way to monetize traffic on the site. It needed more money. So, in 2009, it began allowing users to directly buy points. This decision had some very predictable and very deleterious effects. Namely: inflation.


Goozex, which has (perhaps foolishly) been kind enough to publicly post its concurrent trades since its inception, has provided a very clear window into the aftermath of their inflation/price control death spiral. Overall trades, which were well above 5,000 in 2009, dropped by more than half to 2,400 in late 2010 and as of the time of this writing are sitting at 835.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (5) | Ignore Thread Prev | Next


TV Gaming Help?
Try the Help With This Home Theater board, and problem solved.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.