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Arbitrage Wise Blog: Odd Business Model
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Written by Arbitrage Wise
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Thursday, 06 September 2007 |
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Sponsored by: 
by Arbitrage Wise, CEO Wise Metaverse One of our customers asked me today (and he wasn't the first), that isn't our business model of paying higher interest to smaller customers the opposite model of RL banks or investment companies? It is, if your goal is to be an investment company or bank, but that's not our ultimate goal.
Being a 'bank' isn't even one of our long-term plans. It's just a means to an end. One of our long-term plan is to develop SLWallet.com, sort of like what Paypal was to eBay - a means for merchants to accept payments for products and services, except this time, it'll be with Linden Dollars. For us to do that, we need to build up our customer base, not total deposits. Another business model we're trying to achieve is the advertising network on our ATMs. Paying interest on 100K to 10 customers cost the same as paying interest on 100K to 100 customers. However, if you were advertising, your cost of advertising to each customer is a lot cheaper if you have more customers. In the end, our business model is just different. We need users/customers, not money. That's why customers with 100L are just as important as customers with 1,000,000L. If anyting, maybe this will assure all the big depositers that we're not out to get their money and run off with it.
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