February 16, 2001
10:22 AM Subscribe
You're the world's number one Web destination, responsible for 40% of Internet traffic. You've been making money from advertising for years, but you know that you need to diversify your revenue streams. You run a popular auction site with over 2.8 million listings, but the only money it generates is from ads. The number one site in the auction space charges fees, so why can't you? You come up with fees that are lower than your competitor, and implement them. And then, over the next six weeks, the number of listed items on your site falls 86%. What went wrong?
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