#Software Piracy
02-Nov-91 02:07:37
Sb: #39068-#Software Piracy
Fm: Robert Hayes 70314,2302
To: Vic Wagner 76046,3004
CIS is an absolutely fixed-cost business, aside from some personnel costs.
(Add 100,000 users, hire three more customer service reps). If I go sign
up my cousin, his userfees add to Compuserve's income and do not add to
their expenses. So kicking off ONE user costs you ALL his or her fees as
profit. Obviously, kicking off 10,000 users is a very different matter;
but we are talking marginal economics here, and any one individual is a
pure profit source.