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Well it's not as clear cut as the post suggests, though it's clearly stated as an opinion piece so they are entitled to whatever they want to think/believe.

The difference I'd like to point out is how scalable and reliable the business model is for generating value (aka money.)

For example, I run a web design company that offers custom services and consistently generates revenues each month. However it's not a scalable business. If I got 100x more sales next month, I would need more people and the number of people needed would most likely be a linear function of the number of sales I got. Also, it's not a completely reliable business model in the long run.

Compare that with that of Wix.com, which is a DIY website builder software. I would bet that they know that for every X free users, they'll generate $y in add-on sales. If they got 100x more users/customers, they would need more people and resources but likely it would be an logarithmic function.

Now if you had a "startup" like Wix without a clear focus on figuring out how to generate revenue, that's just foolish. That wouldn't be a startup. That would be wishful thinking.

Basically what I'm saying is that it wouldn't be fair to say that my business that consistently generates $x/month is better than a "startup" that might generate 1/10 of the revenue each month IF they are deliberately trying and succeeding at figuring out an effective, scalable & reliable business model because in year Z, they could be 10x my revenues.




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