Our Business Model, a.k.a. Why I Deserve To Get Rich

April 2, 2006

There was a question about whether we had a business model:

You mentioned that you have started it all because you loved working on this project, but now you fantasize about getting bought. But does your startup have a business model? I mean, if you don’t get both and your project is finished enough to be released, do you have a model about how to make money out of it?

Too many startups these days seem to have no business model whatsoever, unless it is “gee, I hope my project is interesting enough to Google, Yahoo or some other big double-oh player that I get bought”.

Yes, we have a business model. We have released our product and have actual users actually using it on the actual Internet. I know it sounds like complete Web 2.0 assholery to say this, but our business model ultimately revolves around a new revolutionary form of contextual advertising. In fact, it's so contextual that it knows what ads to render before users even request the page (but that's as much as I can tell you here).

From the onset the plan was two parts: 1) get a ton of users, 2) turn each and every one of those users into a veritable gold mine, like a magic satchel that's always filled with tasty treats every time you open it, despite how many you may have taken out. In between, we had the option step 1.5) get bought by Google-Yahoo-Microsoft-Ebay-Amazon. We have yet to accomplish steps 1, 1.5, or 2.

Honestly, though, I've never understood why people get so pissy about how there are all these companies starting up without any idea how to get revenue. Why do you give a fuck if other people are being morons? For those of you with rock solid business plans for getting revenue, looking down from your tower at the rest of us, you should be happy that you're competition is so stupid. For those of you who don't have your own web startup, who aren't working for a web startup, and who aren't bankrolling a web startup, shut the fuck up.

I am sick and tired of reading bitchy blog posts complaining about companies that don't have an obvious revenue model, written by people who aren't even in the game. Yes, maybe 99% of web startups will go down the shitter when Bubble 2.0 bursts. But at least we're playing the game, not sitting on the sidelines. Benchwarmers.

And if I'm in that 1%, I'll be laughing all the way to the Lamborghini dealership. 


One Response to “Our Business Model, a.k.a. Why I Deserve To Get Rich”

  1. If you decide to run with the ball, just count on fumbling and getting knocked down a lot, but never forget just how much fun it is to run with the ball.

    –Jimmy Buffet

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