Comments on: I can has bizness model?

By: ds

ds — Wed, 20 Aug 2008 03:33:17 +0000

About the $0.8 CPM.
The problem is he talks about all his sites. Every site has different ads.
He's giving us an average.
He has pages with perhaps 10 ads on it, some ads on those pages catch a CPM of $0.15, and some $8 but there're pages with no more than two ads. It's impossible to know how much the company makes because we don't know how may pageviews every page gets.

Which is why Mr Arrington was asking for the revenues.
He wanted to know what the RPM was, which is Revenue per thousand pageviews.
Obviously the VCs who backed this company think there's a good business model in this and I sort of agree. Ben Huh tells us in the video it's sort of breakeven.
They got 12 employees, traffic goes up and more money will be coming in thanks to the traffic. I expect it to go up a lot more when they serve more targeted ads.

By: mathewi

mathewi — Wed, 20 Aug 2008 01:41:16 +0000

Damn. I hate it when that happens. Thanks for letting me know, George.

By: George

George — Wed, 20 Aug 2008 01:37:48 +0000

Matt, you're linking to failblog.com, a spam link farm. The actual website is failblog.org.

By: mathewi

mathewi — Wed, 20 Aug 2008 01:16:04 +0000

That's a great idea, Ed.

By: Ed Lee

Ed Lee — Wed, 20 Aug 2008 01:11:36 +0000

interesting – i would've thought that a good business model for these guys would be to have their own in-house ad department that would be able to produce ad-creative that are in keeping with the rest of the site.

not only do you sell the space, but you sell what's on the space…