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> If the answer involves advertising, think again, chances are it’s a poor business model. Now you might say that [insert your favourite startup here] did it an
by mcherm 14y ago
> If the answer involves advertising, think again, chances are it’s a poor business model. Now you might say that [insert your favourite startup here] did it and succeeded, but let me warn you, those are the exception to the rule.
Perhaps. But the startup that succeeds is the exception to the rule, REGARDLESS of their model for making money. And I have seen quite a few that worried first about getting customers and only later about how to make a profit off them.
It's not that making a profit is unimportant (it is incredibly important, and also very hard). It is that making something that is successful is ALSO incredibly important, and is even harder. If you can solve the harder problem (being successful), perhaps later you can solve the problem of being profitable also. If you can solve both from the start that's even better, but not everyone can do that.
- tzaman 14y agoActually I have a post planned for the market fit as well - but yes, I mostly agree with you. But the problem arises when you try to fundraise (and many startups do) - then you'll have to have a very clear idea about making money. Based on my experience, it's pretty much the only thing investors care about.
- jeremyjh 14y agoI don't think you can just separate these two issues. If you do not monetize your solution it will often be more attractive and thus the traction you get will be misleading. For example, I'm sure I could make a very popular product by simply giving away terabytes of free storage and bandwidth exposed through a simple API and web interface. But that would do nothing but attract the kind of takers that would never pay for anything while it hemorrhages money.
- bdcravens 14y agoIf you do not monetize your solution it will often be more attractive and thus the traction you get will be misleading. Probably the wisest thing I've ever read on HN.
- ahoyhere 14y agoYES. Thank you. If you hate drunken frat boys, don't open an Irish pub. Everything you do attracts a certain kind of person. Better do it deliberately, or you'll screw yourself.
- juan_juarez 14y agoFrom what I've seen, codeable.io's business model seems to be "get lots of blog posts on the HN front page".