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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. This is a tough business. Face reality.

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How To Make Money Like Facebook With Online Ads

Startup Professionals Musings

One of the most popular and least successful models I see in new business plans for startups is the so-called Facebook model, providing free services to users while collecting revenue from ads to offset costs and grow the business. This model, called pay per click (PPC), is the one most commonly offered to entrepreneurs.