

Is Offer-Based Monitization Really The Future Web/Mobile Revenue Model? - dg

Everyone I talk to in the Valley seems to think that companies like Offerpal (http://www.offerpalmedia.com/) are the future of web and mobile application monitization ...What?!
======
jaxn
I disagree, but I think I understand why they think that.

The only exit for VCs is selling the company. Acquisitions seem to be based in
large part on the number of users. Since ad-supported models don't do well
when there is less ad-spend and fewer conversions (like our current economy),
donations may provide enough to keep the ship afloat.

The thing is, I don't think anyone is trying to actually make money with a
donation model; it is just trying to hang on until the sale. If we get rid of
Sarbanes Oxley and VCs had a second exit possibility, I think we would see a
companies actually trying to make money and not just make enough to keep the
servers powered up.

