3 ms·

This is why I firmly believe that the "Give stuff away for free + advertising = $$$" model will fail. People need to sell products, for money. That's what I'm g

by tnash 14y ago

This is why I firmly believe that the "Give stuff away for free + advertising = $$$" model will fail. People need to sell products, for money. That's what I'm going to do with my startup. Consumers will be customers, not the product.

Tossrock 14y ago
It seems like there are three fundamental business models for tech startups right now, the first and most profitable being to impose oneself as the middleman in a real money transaction, the second and less profitable one being reselling AWS services with some frosting, and the last being the word "...ads?" scrawled on a cocktail napkin. Seems like most tend to go for the last one.
- mindcrime 14y ago
  It seems like there are three fundamental business models for tech startups right now Don't forget the other one: 4. Sell a product to businesses that have money to spend.
taligent 14y ago
One of the most successful and enduring businesses of the last 100 years has been television. A large chunk of which uses such a model. So the idea it will fail is a little misguided.
- tatsuke95 14y ago
  That model is still hanging on because old people still watch television. Meanwhile, young folks are downloading shows or recording them with a PVR so they can skip commercials. The best shows on television are on premium cable, subscription based, with no commercials. Netflix, Hulu, Youtube are great alternatives. How are radio and newspaper ads doing? Just because the television advertising model hasn't crumbled yet doesn't mean it's invincible.
- tnash 14y ago
  You're correct. I may have embellished a little. I should have said "fail for most" instead of "fail". Google, for instance, makes money off of advertising, as it says in the article. It would be dumb of me to suggest that the model doesn't work at all. I apologize.

3 ms·

This is why I firmly believe that the "Give stuff away for free + advertising = $$$" model will fail. People need to sell products, for money. That's what I'm g

by tnash 14y ago

Tossrock 14y ago
It seems like there are three fundamental business models for tech startups right now, the first and most profitable being to impose oneself as the middleman in a real money transaction, the second and less profitable one being reselling AWS services with some frosting, and the last being the word "...ads?" scrawled on a cocktail napkin. Seems like most tend to go for the last one.
- mindcrime 14y ago
  It seems like there are three fundamental business models for tech startups right now Don't forget the other one: 4. Sell a product to businesses that have money to spend.
taligent 14y ago
One of the most successful and enduring businesses of the last 100 years has been television. A large chunk of which uses such a model. So the idea it will fail is a little misguided.
- tatsuke95 14y ago
  That model is still hanging on because old people still watch television. Meanwhile, young folks are downloading shows or recording them with a PVR so they can skip commercials. The best shows on television are on premium cable, subscription based, with no commercials. Netflix, Hulu, Youtube are great alternatives. How are radio and newspaper ads doing? Just because the television advertising model hasn't crumbled yet doesn't mean it's invincible.
- tnash 14y ago
  You're correct. I may have embellished a little. I should have said "fail for most" instead of "fail". Google, for instance, makes money off of advertising, as it says in the article. It would be dumb of me to suggest that the model doesn't work at all. I apologize.