Xmarks Mulls Switch to Premium Service

webmonkey.com

4 pointsdesigooner2 comments

So they want a guaranteed 5% conversion rate and it costs them $2M per year for 2M users.

Let's be generous and assume 10% are active users -- their costs are $10/active user/year.

We can see why no one has bought this business.

And I have no idea what they're spending $2M/year on.

The $2 million would most likely be spent on salaries, therefore if they wanted to run it as a premium service they'd need to fire everyone but 2-3 people (developer, business, systems) and keep it going minimally like that.

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