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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.

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How To Make Money Like Facebook With Online Ads

Startup Professionals Musings

To make this work, you need heavy traffic on your site -- probably at least a million page views per month -- which most sites never achieve in their lifetimes. While you are doing all this work, of course, you need deep pockets to fund all your efforts, content and growing website hosting fees.

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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. The most challenging time is your first years, when your site is unknown, and your page-views are low.

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. What's the business model behind the site--it looks like this is advertising driven?

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