Re: ONLINE-ADS>> The math just doesn't work...Or does it?

Sue Levin (Sue_at_wwwomen.com)
Fri, 5 Jun 1998 08:30:28 -0700

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Great discussion on the profitability (or lackthereof) of business models
on the web. One thing that always amazes me is, on the cost side of the
equation, the incredible rate of burn public companies or v.c.'d
companies have with their cash. I know of more than one instances where
there have been a staff of 40 full time people for a 5 million view/month
site! I wonder if all the venture capital being placed into web companies
has made some of those running them less hungry about getting profitable
quickly and hence less attentive to *both* revenues they are generating
and the cash they are spending. Talk to most in the industry and what's
their Exit Strategy? I've heard two main answers: 1) We wanna go public,
and 2) We wanna be bought. Well, in both cases we've seen that you do not
have to be actually *profitable* to do so! I'd love to hear how ofen
others on this list have heard people say, "I want to have a profitable
website so that I can make a great living operating it." Yeah, right!! ;)

==============================================
Sue Levin SueLevin_at_wwwomen.com
WWWomen http://www.wwwomen.com/
The Premier Search Directory for Women Online!
==============================================

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