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The advertising equivalence principle?
- aneesh 18y agoI wish more people would do this math before launching a startup than plans to monetize via advertising. It's just a quick back-of-the-envelope calculation, but I'm surprised at the number of startups that naively think they'll get rich with Google AdSense. One small thing this calculation ignores is that the CPM, CPC, and CPA models shown aren't exactly equivalent. It depends on how much risk the advertiser is willing to take. With the CPA model, there is no risk - you only pay when the action happens. With CPM and CPC, you may get better or worse leads, so there is some variability. On the whole, this post makes an argument that needs to be made more often: Have a monetization plan other than advertising.