5 ms·
Just a question about Yipit... don't they need millions of visitors to be successful? 100K visitors/month sounds nice, but they're in the deal aggregating busi
by Hisoka 15y ago
Just a question about Yipit... don't they need millions of visitors to be successful?
100K visitors/month sounds nice, but they're in the deal aggregating business, so the margins are even less than if they were a deal site. They don't make money off every single user, and when they do... they make a tiny percentage as affiliate commission. Am I missing something here? I know regular old-fashioned coupon sites(like CouponCabin) that make good profit, but they have visitors in the millions, and their margin is much more.
- achompas 15y agoYipit also sells that aggregated data to various institutions (http://yipit.com/data/ http://yipit.com/data/). Their pricing plans [0] suggest they make a non-trivial amount of revenue from selling this data. [0] http://yipit.com/data/pricing/ http://yipit.com/data/pricing/ EDIT: See vacanti's reply down there.
- jcampbell1 15y agoThe people willing to pay $10k/month for data are hedgefunds planning to trade shares of Groupon. With the Groupon IPO postponed, it may be hard to retain and attract new subscribers.
- Woost 15y agoWhat about Groupon paying 10k/month for data on what other deal sites are doing? How much interest there is in, say, food+bar deals would seem to be fairly valuable to their sales force...
- achompas 15y agoSure, that $10k figure is steep. However, I'm sure there are non-trivial amount of daily deal execs, VCs, and tech analysts who would gladly pay $2k/month to understand the competitive daily deal space.
- diolpah 15y agoYeah, you're missing something. It's 2011, and we're in the middle of a huge bubble. The only thing that matters to most new startups is "getting funded". Making money is merely a sideshow to the main event, which is growing traffic and conducting round after round of follow-on financing.
- timjahn 15y agoSo, so true. And so horribly sad.
- chopsueyar 15y agoAfter I read this article, I was wondering why something that took 3 days to build needs $6million in investment? Thank you for the answer.
- cageface 15y agoIf only we'd gone through something like this before and knew better than to make the same mistakes all over again.
- pyre 15y agoThis Time It's Different(tm)