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 couple of years.





Comments


Written by nialldevitt
4635 days ago

Totally agree with you, Martin. Website ads are only viable if you have significant traffic and even then, you may very well end of up competing with Facebook and the likes. Build a different model from day one :)



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Share your small business tips with the community!
Share your small business tips with the community!
Share your small business tips with the community!
Share your small business tips with the community!