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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. This is a tough business.

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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.

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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.

CPC 106
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Interview with Dan Yomtobian, Scour

socalTECH

Scour is an offshoot of a PPC advertising firm, ABCSearch, which was also founded by Dan. We're about to do some marketing, but the hard part really isn't going to be getting people to visit the site, it's to get them to stick. We're going to add value-added services, points, and giveaway type programs.

PPC 113
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Is it a Good Idea to Have Ads in Tweets?

Both Sides of the Table

My firm GRP Partners recently funded a young LA based company named Ad.Ly Wordpress), video (YouTube), pictures (Flickr), review sites (Yelp) and collaborative content (Wikipedia). People got their knickers in a twist when they saw people like Michael Arrington and Robert Scoble having advertisers and endorsing brands on their sites.

Ideas 286