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Funding a Startup from Advertising is a Vain Dream

Startup Professionals Musings

If challenged, the founder usually cites the Facebook business model (free service to users, revenue from ads), but forgets that Facebook has had several hundred million in funding, and has been profitable only in the last two years. Don’t count on that to fund your startup. For advertisers, this is called cost per click (CPC).

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Website Ads are Not a Revenue Stream for Startups

Startup Professionals Musings

If challenged, the founder usually cites the Facebook business model (free service to users, revenue from ads), but forgets that Facebook has had several hundred million in funding, and has been profitable only in the last couple of years. Don’t count on that to fund your startup. For advertisers, this is called cost per click (CPC).

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How To Make Money Like Facebook With Online Ads

Startup Professionals Musings

While you are doing all this work, of course, you need deep pockets to fund all your efforts, content and growing website hosting fees. When Facebook did it a few years ago, the company used more than $100 million in venture capital funding before it became profitable. For the advertiser, this is the cost-per-click (CPC) model.