| Kerensky287 |
08-10-2011 08:45 PM |
Quote:
Originally Posted by Aerozord
(Post 1147685)
no I am saying if money isn't there then its not possible. you cant give something you dont have.
It is also common to run a company on the assumption you will make revenue in the future, in fact its one of the most basic principals in accounting. For a variety of reasons that money might not be there when it comes time.
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No one is arguing that that is POSSIBLE. What it looks like to me, though (as an outside observer) is that you are suggesting that The Escapist was doing so as a "legitimate business tactic."
Yes, it is legitimate in that it is possible and occasionally works as you have laid out. However, in this case, it was not a "legitimate tactic" in the sense that no one in their right mind would ever do it and expect to make money honestly.
If The Escapist had taken out loans to pay its content providers rather than lay them off in hopes of future revenue, that would be legitimate. If The Escapist had laid off content providers that weren't raking in many hits so as to avoid taking out loans, that would be legitimate.
What The Escapist did was sort of a mix of the two. They laid off content providers to avoid taking out loans. And then they hired content providers in hopes of future revenue. The big reason why this is not a legitimate business tactic, in this case, is because they missed the all-important "pay your fucking employees" step.
It seems to me that, to a certain extent, everyone is arguing the exact same point from different angles. It just looks like there's a disagreement going on because Noncon and Solid Snake are pushing the "it's unlawful and painfully stupid" side, and Aerozord is pushing the "people have done similar things and succeeded" side.
Quote:
Originally Posted by Aerozord
(Post 1147685)
Now hopefully I wont have to say this again, but I am not saying this is the case. Honestly I find it unlikely that a site so popular that this is even news isn't turning enough of a profit to handle its expenses. Most likely this is either horrible management grossly mishandling its accounts probably from growing too quickly, or they are just being dirty business men and screwing over people left right and center.
Of course there are other explanations, but those two seem most likely to me
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I can't really comment on the validity of this statement - I don't have any business training, and most of my theories revolve around the fact that so much of their content (ie. most of the stuff aside from ZP and EC) kind of sucks - but I will point out that, as James Portnow mentioned in a response to The Escapist's big list, it feels a little suspicious that all that money suddenly appeared the moment Extra Credits asked for their IP back.
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