4 ms·

Sure. 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?

by retube 16y ago

unohoo 16y ago
Unfortunately, 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 ago
It'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 ago
  Maybe $4 per year. GOOG keeps reducing AdSense payments to help provide quarter-over-quarter income growth.
  - nl 16y ago
    Got 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 ago
      I 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 ago
  OK sure. but how do you estimate your visitor/traffic growth?
  - nl 16y ago
    Both sites have release traffic numbers in the past.

Sure. 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?

by retube 16y ago

Sure. 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 ago

Unfortunately, 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 ago

It'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 ago
Maybe $4 per year. GOOG keeps reducing AdSense payments to help provide quarter-over-quarter income growth.
- nl 16y ago
  Got 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 ago
    I 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 ago
OK sure. but how do you estimate your visitor/traffic growth?
- nl 16y ago
  Both sites have release traffic numbers in the past.