Advertising based businesses are 100% about scale because making money with ads is about math. Take a CPM of $10. To make $10,000,000 you need 1,000,000,000 pag

Advertising based businesses are 100% about scale because making money with ads is about math. Take a CPM of $10. To make $10,000,000 you need 1,000,000,000 page views. Figuring each user views 10 pages (which is probably high), you are now down to something like 100,000,000 user sessions. Now, figure each user visits your site 10 times a month (which would be a pretty site), you're now down to needing 10,000,000 users a month to make $10 million a month. That is a per user value of $1 per month or $12 a year. Now, compare that to a SAAS that charged $25/month/user. You're now talking per user revenue of $300 per year. It's a lot easier to build a company at $300/user/year than $12/user/year. To make $10 million a month at $25/user a month you need 400,000 users. That's still a big number, but it's probably easier to reach 400,000 customers than it is 10,000,000 users.