Advice on web business models
There's a great post by Fred Wilson, a New York-based VC, who writes about internet business models. He says the obsession with revenue isn't the only - or even the best - way for internet start ups to build success. Focussing on costs can be more rewarding, since valuations are based on future profit streams. He cites Craig's List as a great case of lean business with great margins - perhaps $100m of revenue and only 30 employees. The risk always is that firms become tempted to grow ever larger and this is what causes the real problems.
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