One of the biggest red flags I see in many Internet-related business plans today is advertising as the initial revenue stream, or a key part of it. If challenged, the founder usually cites the Facebook business model (free service to users, revenue from ads), but forgets that Facebook has had several hundred million in funding, and has been profitable only in the last two years.
Funding a Startup from Advertising is a Vain Dream
Posted by
martinzwilling under Startups
From http://blog.startupprofessionals.com 4868 days ago
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