If You Have Any Ideas On How Skype Can Make Money, Please Skype eBay
from the calling-for-cash dept
We pointed out back in April that Skype's financial performance didn't look like it would be strong enough to meet some performance metrics to trigger some of the $1.5 billion in earn-outs that were part of its deal with eBay. Now, there's speculation that those goals were indeed missed, amid further questions about just how eBay will monetize Skype. eBay's strategy for Skype has never been clear, and many of the things it touted in the deal -- like the ability for eBay sellers to put a Skype link in their listings, so potential buyers could easily call them -- haven't paid off. While sales are expected to have tripled in 2006 to $195 million, that's still not enough of a money-spinner to validate the billions eBay dropped for the company. Skype faces a big challenge in converting users of its free services into paying customers, but its strategy remains questionable. An exec says that they're focusing on adding content and e-commerce into the mix with things like ringtones and multi-user chats about certain topics called Skypecasts, but it seems like Skype's missing out on some markets that could prove more lucrative. For instance, Skype could be a valuable tool for many businesses, particularly small ones, but its efforts to target this market have been pretty paltry, and it seems to do very little marketing to bolster awareness of its services as business tools. Few of the oft-hyped "synergies" have failed to materialize, though further integration of Skype and PayPal could boost the latter's transfer volume. Overall, eBay's strategy to build Skype's business remains as unclear today as it was when they said they were buying it.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Reader Comments
Subscribe: RSS
View by: Time | Thread
How about a Skype in # I can use?
Or, how about an 800 service for Biz?
[ link to this | view in thread ]
Look at your service.
I've been using Skype in place of my land line service for almost a year now. I spent $60 for a USB adapter so I could hook my favorite Panasonic cordless phone with the service. I then bought a year worth of SkypeIn, which gave me a local incoming phone number that anyone can call me with, for $39 a year. This month I added SkypeOut for $15 a year, so I can call anyone in North America free. My total costs came to $114 for a full year of unlimited local and long distance calling, plus all the incoming calls I can get as well. That's about $9 a month for phone service.
AT&T CallVantage or Vonage charge $25 a month for the same thing. That does include 911 service though - but is that worth an extra $16 a month? Especially since my cell phone handles 911 just fine if I need it.
If Skype would market themselves a little differently, they could easily pick up 5-10 million new users, who pay. My suggestions:
1. Offer a self install package.
A $99 or $129 per year package, that includes the equipment to use your home phone, would go over very well - for the technically literate.
2. Offer an installed package.
Charge $199 for those who need a little help getting it started or installed.
If customer service or technical support is what scares them - charge for it or offer online public forums so users can help each other. They will, to save a few dollars.
Land Lines are a thing of the past. They need companies like Skype to proove that.
[ link to this | view in thread ]
Re: Look at your service.
Switch to a Cell phone plan with the lowest minutes.
Buy unlimited Data transfer
and just use skype to make calls.
but it doesn't work that way, so I forgot about skype.
[ link to this | view in thread ]
Looking at the long term investment?
It does seem to me that Skype could turn very lucrative if public access broadband wireless becomes a reality. This would leave skype in the position of providing a "cellular like" service anywhere in most major metropolitan cities.
I'm sure there would be a couple of hurdles to overcome along the way, but it seems like this is the inevitable conclusion for this technology.
Of course, that would mean someone bet big on public access broadband wireless. *shrug*
PS - I'm sure apple will try something similar with the iPhone but it will ultimately fail when they try to embed DRM into our phone calls
[ link to this | view in thread ]
extra connectivity services
like the income generator to me. Why aren't they leveraging that properly?
[ link to this | view in thread ]
Cellular vs Free WiFi
* cellular phones are expensive
* Skype is nearly free
* Free WiFi networks are expanding rapidly
* WiFi/Skype phones are becoming more reliable
I've purchase 2 Belkin WiFi /Skype phones. The voice quality on most networks is as good as cellular. Aside from the limited network rang of WiFi (you pretty much have to stay in one location to talk) and the Skype connection slowness the WiFi-Skype phones are an excellent solution. Savings = $40/mo - $3.33/mo. = $6.66 . Thats about 90% of cellular and an excellent value proposition.
If I were the man behind the curtain I'd be looking to replace those expensive cellular devices .
[ link to this | view in thread ]
I replaced my landline with my cell phone. I don't use a ton of my minutes, and when I start getting close, the ol' SIP phone comes in really handy. And with services like IPKall.com providing free incoming numbers so people can call you from land lines (360 area code, but who cares), I couldn't afford not to do it! Total investment so far, $30 and I'm going strong for 2 years.
[ link to this | view in thread ]
encrypted chat
The idea of VoiP on cell phone and PDAs is the future. My friend just bought a Nokia E70 from the UK (he lives in NYC, ordered in over the web and had it shipped) with a T Mobile account UK and the True Phone service and is able to make VioP calls now over WiFi networks and call all over the world paying only for a 900 minute plan.
This is a real category killer for the wireless telcos based in the US, and they seem to be doing everything possible to stop this from being a widespread event, but it is only a matter of time.
The writing is on the wall and I believe Skype will succeed int the long run.
[ link to this | view in thread ]
closed, proprietary dead-end
Skype uses proprietary protocols, with undisclosed security systems of dubious value. People who put too much faith in Skype obviously haven't learned the lesson of the Microsoft monopoly: give a single company that much power over you, and you will be disappointed.
There is an open standard protocol for IP telephony: it's called SIP. And there are loads of different implementations of that, both hardware and software. And of course there's the open-source Asterisk with its IAX2 that also has wide hardware and software support. If you're going to put your trust in something, put it in a broad ecosystem like this, where no single company has the power to dominate the market, or to bring it down by going bust.
[ link to this | view in thread ]
Revenue
[ link to this | view in thread ]
An idea,how to make money on skype
I personlly would target the people who make international calls and have them give me their families email address and connect them,If I have to go to their home to get them started.
The more people we get using the service,the more I should get paid and we should also make more money when skype users buy skype credit.
I think this is a great idea.
Thanks
Sharon Clarke
[ link to this | view in thread ]