

Andrew Chen: Your ad-supported Web 2.0 startup is really a B2B enterprise in disguise - andrew_null
http://andrewchen.typepad.com/andrew_chens_blog/2008/04/your-ad-support.html

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aston
Clever take on the situation. However, unlike a straight up B2B play, you do
still have a huge chunk of your company doing B2C work, and the more good you
do in the latter, the easier the former gets.

Ask the engineers at Google and Facebook whether they feel like they're
unimportant even though they're not directly bringing in the money for their
company.

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henning
"You have to make your product better not through superior technology, but
often through superior PR, sales operations, or other non-geek issues"

Better sales/PR does not make what is being sold better. It is business
development, not product development.

~~~
pchristensen
But if it sells better, that's better business.

Product * Business = Profit.

Better make sure Business > 0, preferably > 1\. You can worry about product
perfection once you've solved The Money Problem.

~~~
henning
He didn't say "make your business better". If he had replaced "product" with
"business" I wouldn't have replied.

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sabat
I think Andrew's making a good point here -- if you can offer some sort of
value-add to your customers, it'll help diversify your business. Virtual goods
(have to be scarce and desirable!), extra services, special privileges all
qualify.

But you don't need a gigantic avalanche of hits to make an ad-supported site
work, _if_ your goal is to make a business that adds some cash to your pocket
or might be picked up by a large organization.

The days when every startup dreamed of IPO and sky-high revenues are over.
Most of us, I dare say, aren't shooting for that at all.

Yes, plentyoffish (god's favorite example) does make millions per year from
ads. Like $9 million. I don't need $9 million. $2 million would be fine.
Selling the business for $9 million would be even better.

