It's time to monetise the thing.

When? I said it's time to monetise the site.

I say it's time to start making money from The Facebook, but Mark doesn't want advertising.

So a plus b have to be equal to 50.

Profitable.

Invest financial assistance, but also management assistance.

And we can eyeball it right here.

Maybe Abby made 50 and Ben earned 0.

But the point is, we are architecting access here, for what purpose?

Because when someone says earnings, are those the earnings last year?

The overhead went up.

And what's left over for the equity?

The deterioration of corporate earnings has yet to bottom out.

What if the bake sale only netted 71 dollars for charity because it made no investment in its scale and the professional fundraising enterprise netted 71 million dollars because it did?

The earnings I just said, this is actually what happened to the company.

So let's look at them over the course of one year.

So notice.

Everything on this line would be a valid combination of

You get 400 from the customer the previous month.

But we'll talk more about it in the future.

He borrowed a large sum of money on the strength of expected income.

Abby earned 10 more than Ben.

And why don't you like them as much?

So the price would be 100.

Another type of revenue model is licensing.

The reason why you are willing to pay a higher Price to

So let me switch colors just to ease the monotony.

And they were male and female 18 30 and they were casual fans.

And the way that you account for this 200 in advance from a customer, is you call that deferred revenue.

Plus what I owe?

How much do you owe him? Whoa.

But for our sake, let's just say that when you give the widget, you have earned the money that they give you, and that's revenue sales.

And the first one is that this whole idea about revenue stream, Steve, I get it.

And that money that they give you and I'm not going to get too technical about the accounting right now is considered revenue.

What does that tell us?

It's just a faster way of saying

So now we add an interesting line.

This is really important to pay attention to, because so many people say, oh, a company made this much.

And we add back the interest, at least in this example, we get to an operating profit number.

Gambling debt?

We are assuming a very simple world, were the is no taxes, we have no debt, we have no intrest or things

And the whole time, it's been doing that by printing money and buying short term US securities.

Nope. Bill collectors.

And so I'm left with net income of 350,000.

But I just want to give you the gist of what's happening.