This is where those of us who are either in the Web Hosting business or know about the Web Hosting business get lost. These days you don't have to have your own T1, (unless you are motivated by other factors to have one and want UT members to pay for it). Everything Michel is trying to do himself, can be done faster and less expensive if he outsourced it. We are talking dedicated servers on T3 at about $400-$500/month US if paid monthly, cheaper if by the year. And if Advertising (or even a PUTM of say $20/month US) can't support that, something is grossly wrong somewhere in UT.

BTW-For those of you who find this type of thread disturbing, don't read it.

>Ed,
>
>You have brought up some good points.
>
>The way I see it, there are two important issues at stake for the UT:
>[1] To continue to provide a important service to the Fox community.
>[2] Ensure that it survives as a business in order to sustain the abovementioned.
>
>The good news is that the UT is growing. The bad news is that it's growth cannot be sustained by it's current pricing structure.
>
>I believe that the proposed PUTM fee increase will result in disaster. There will be PUTM members who will find it easier not to renew at a higher fee and will opt for the basic membership. UT traffic will continue to increase and cashflow will gradually decrease. The result will be a critical mass situation which will be extremely difficult to rectify.
>
>There is a principal in economics called price elasticity. All goods and services have this property. Some goods and services are inelastic which means that demand for these products are virtually uneffected by price increases because they are needed no matter what. For example, electricity, gas, water, etc. are examples of inelastic goods. At the other extreme, are highly elastic goods and services - boats, cars, club memberships, magazine subscriptions and, in my case, cuban cigars ;>). These are the items that folks can do without during bad financial times, recessions, etc.
>
>I believe that PUTMs are elastic due to the fact that as time goes by, PUTM folks will approach their own state of desired expertise and the value they place on membersips will decrease. As a result, they won't opt for the PUTM renewals. I, myself, have cancelled my subscription to FoxPro Advisor for this very reason. God forbid a recession - the UT would not survive.
>
>Sorry for the Econ 101 lesson, but it cannot be avoided when considering what pricing structure is appropriate for the UT.
>
>So what is the solution? I have no idea. I have just realized that this is much more complex than I originally thought. Actually, it's quite challenging and I hope that Michael carefully analyzes the situation - consultants make alot of money providing solutions like this.
>
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>>I disagree at least in part, but agree in general. There is a need for free access to UT as a support medium for the community. If UT can provide it, great.
>>
>>PUTM is a high-ticket upgrade that does not get much of a change in the user interface, but offers significant advantages when dealing with UT Partners. In part, this is what PUTM members are doing by becoming PUTM members. In large part, however, they're providing a revenue stream in the hope that UT remains a functional and worthwhile entity.
>>
>>I'd like to see some rollback of the free user interface so that, while present, is not as convenient - perhaps time limited or volume limited - I don't have an answer here. In addition, add a relatively low-cost membership in the $15-20 range that gets the basic functionality now available. It provides a way for users who don't have the finances to become full-fledged PUTM to help pay for the upkeep and make a statement that they're willing to support UT in the interest of keeping it feasible.
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>>IOW, create a way for UT participants to say "UT is worth some small financial investment, but PUTM does not make sense for me." It shows support. It increases the revenue stream. It relieves the perception that PUTM are giving the rest of the people a free ride.
>>
>>The same model is used successfully in the publicly-funded broadcast envrionment in the US today. I support my local public broadcast station. Isn't UT worth supporting? Only a small percentage of PBS viewers and public radio listenrs join their stations, but with an entry level of $25-35 for a basic paid membership, I'm sure the percentage is much larger than if the minimum entry level were $100.