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Well, one thing about 1999 is where the actual revenue for the big players was coming from. That is, when Yahoo reporting their income what % just came from sta
by jboy55 12y ago
Well, one thing about 1999 is where the actual revenue for the big players was coming from. That is, when Yahoo reporting their income what % just came from startups spending VC money without a business plan?
The whole dot-com thing in 99 was pretty much a pyramid scheme, where the first players showed there was promise, then when everyone rushed in with their VC money to spend, they looked solid. When the leaf nodes ran out of VC money though, everything dried up. And that hit not just Yahoo, but software/hardware vendors, and just about everyone else.
What could be dangerous now, is how much of Google's and/or Facebook's money is advertisers who are selling goods/services, or Advertisers wanting traffic for their ads.
Facebook seems to have a lot of ads from Answers.com, which is ad driven itself. Pretty much every mobile ad I get is an add for either Google or a different mobile product. I would say the whole 'freemium' game thing has put a lucrative revenue model to those eyeballs, but how much of that is a fad?
If those advertisers disappear, how badly will Facebook's revenue or Google's mobile revenue be affected?
- netcan 12y agoThere is some of that. but for the most part (1) advertising revenues come from across industries, (2) startup revenues as a whole are fairly diverse coming from advertising, saas, transaction fees on rooms or rides and (3) most importantly I don't think Dropbox's value will hit critical levels because twitter's business model fails. its all a lot less speculative. multiples are high, but not the imaginary. most of the mature 2.0 startups are real businesses with a company value derived from revenue and profit.