Yahoodwinked: "Run the numbers. Yahoo! has about 86.5 million email users. At $1.00 per year, [associate at Howe Strategic] Gunawardena projects 75 percent would convert, generating nearly $65 million in incremental annual revenue. That's 7 percent of the revenue Yahoo! projects will be generated this year. At $3.00 per year, Gunawardena projects 50 percent conversion, generating nearly $130 million in incremental revenue. That's more than 14 percent of the 2002 annual revenue projection."

How much does the average e-mail user costs to Yahoo? The very low price point idea sounds intriguing. At these tentative conversion rates top line revenue would be quite significant, but is $3 per year enough to make a good profit margin on?