4 ms·
Take my advice with a grain of salt as I play armchair analyst. Structurally, you're in a race for eyeballs and burning cash along the way. Sites like these ca
by jyu 12y ago
Take my advice with a grain of salt as I play armchair analyst.
Structurally, you're in a race for eyeballs and burning cash along the way. Sites like these can not be monetized easily until you have rapid growth and a large, active user base. Are you ready to burn a lot of cash? Do you have the clout to raise several rounds until you get to some sort of critical mass?
Sites like these monetize through two methods: advertising or product referrals. Even with millions of pageviews / month, you are still only looking to support a handful of developers. Looking at product referrals, review Refer.ly (YC12), which realized the business model of product referrals doesn't back out until you've reached millions of users. Between where you start and that millions of users point is an uphill battle. Then, at that point, you're kind of chugging along at ramen profitability.
Pinterest and Wanelo have raised large rounds and have been burning cash since 2009 with no significant revenues to speak of (unless something has drastically changed in recent months).