Right! E.g., suppose a Web site starts to take off, that is, has number of users per day increasing rapidly. Then, a crucial number in the growth is how soon

Right! E.g., suppose a Web site starts to take off, that is, has number of users per day increasing rapidly. Then, a crucial number in the growth is how soon can one server computer generate enough revenue to pay for a second server computer? That is, we're talking about a start on exponential growth. Well, long the M. Meeker KPCB reports said that can get paid about $2 per 1000 ads displayed. Okay, maybe now that's down to $1. Okay, suppose send just one ad per Web page. Get, say, a server with an 8 core AMD processor at 4.0 GHz for $1000 and send on average 24 x 7 just one Web page per second. Then the monthly revenue would be 1 * 3600 * 24 * 30 / 1000 = 2,592 dollars. So, in two weeks, get another server. So, we have essentially exponential growth with a doubling time of a little less than two weeks. So, we have, in the history of (legal) business, about the fastest growth, the best business opportunity, of all time. But we were talking 8 cores, right? At 4.0 GHz, right? If the Web pages are relatively simple, then we're talking being able to send maybe 8 Web pages a second. And we may have more than one ad per page. Okay, assume as above but 8 pages a second with 4 ads per page and get 1 * 8 * 4 * 3600 * 24 * 30 / 1000 = 82,944 dollars a month in revenue. That was one server. So, in a spare bedroom get a wire rack shelf unit at Sam's Club for $100 and put 12 midtower cases of such servers on that rack. Have an electrician upgrade the house circuit breaker box and run 240 V to the spare bedroom for the computers and a big window unit A/C. Also put a propane powered backup generator on a concrete slab in a small hut out back. Now we're up to ballpark $1 million a month in revenue. So, we're talking ballpark $10 million a year in pre-tax earnings. At a P/E of 40, we're talking a company worth $400 million, from a spare bedroom. Is the Internet a great opportunity or what? Sure, the issue is getting the users. But with the users, there's only a small window of time when even a dirt poor founding entrepreneur would take equity funding. And without the users, still there would be not equity funding. Net, it looks like equity funding and Web sites mix like oil and water. If the site grows, if it doesn't, in either case, there's little or no role for equity funding. Of course, if have just a Web site, may have only a lifestyle business. Okay. Not so bad.