Thursday, July 21, 2011

An ancient business recipe for modern success.

In 2009, I commented on the similarities between eBay and ancient king Croesus: in both business models one becomes enormously rich by owning a money standard. 2,500 years ago, the newly introduced money standard was gold coins, now, it's digital coins. eBay's 2009 strategy to make PayPal the largest part of the company is beginning to bear a hefty fruit:

CNET. July 20, 2011 1:44 PM PDT.

eBay reported second-quarter earnings of $283 million, or 22 cents a share, on revenue of $2.76 billion.

Overall, PayPal is carrying eBay. PayPal delivered its first $1 billion quarter and had 100.3 million registered accounts, up 15 percent from a year ago.

Note, that this growth happened during one of the worst recessions in American history. This would make Croesus proud. The business model he invented in the 6th century BC continues to work like a charm.

tags: money, business, model, commerce, system, deontic, payload, transfer, economics

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