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Platforms like posterous and tumblr rely heavily on scale - ie, a large number of users. So, their first priority is to get as much users on board as possible f
by unohoo 16y ago
Platforms like posterous and tumblr rely heavily on scale - ie, a large number of users. So, their first priority is to get as much users on board as possible from other publishing platforms. Once they reach a certain threshold, they can start experimenting with revenue generation - be it in form of advertising or premium hosting etc.
Thats similar to the way Wordpress played out.
- antidaily 16y agoI noticed that Wordpress.com sites started serving ads too.
- jamesgeck0 16y agoIf I remember correctly, they've been serving ads occasionally since close to the beginning of the site. It was just a reasonably infrequent occurrence.
- retube 16y agoSure. But how the hell do they convince investors to get on board? Any future numbers are so pie-in-the-sky, and revenues so far off, why would anyone touch it?
- unohoo 16y agoUnfortunately, I'm not a VC so cant offer a response that'd do justice to your question. Most of the VC investments happen based on the team and little based on the idea (at least thats what I've read everywhere) - so I guess the founders impressed the investors enough to invest.
- nl 16y agoIt's not pie-in-the-sky. Anyone should be able to make between $4 & $5 per 1000 visitors from just running AdSense. Use that as a baseline and do the math from there. If you can add-on non-advertising forms of revenue then that is a bonus.
- rphlx 16y agoMaybe $4 per year. GOOG keeps reducing AdSense payments to help provide quarter-over-quarter income growth.
- nl 16y agoGot math? It's going to depend on your field of course, but it's pretty easy to get between 0.5 & 1% clickthough and 10c per clicks. That's between 50c & $1 per 1000 pageviews, and I said $5 per 1000 visitors (ie, uniques). If you double the CTR (quite doable with optimization) and get 2 pageviews per visitor then that's $4/visitor already... If you prefer, look at it like this. The lowest Adsense eCPM I've seen over any medium period by anyone I know is $0.70. Posterous is doing around 1.5 million pageviews per day (http://www.quantcast.com/search.jsp?domain=posterous.com http://www.quantcast.com/search.jsp?domain=posterous.com) and Tumblr is doing over 60 million. Getting revenue with that much traffic wouldn't be too hard.
- rphlx 16y agoI was being snarky, but, AdSense payouts are trending endlessly downward as far as I can tell, and that scares investors. At least it should.
- retube 16y agoOK sure. but how do you estimate your visitor/traffic growth?
- nl 16y agoBoth sites have release traffic numbers in the past.