Making Money Online Stats.

interview on techcrunch has brought out a lot of responses from various bloggers.  Scoble mentions my site and talks about the need for others to think outside of the bubble,  do adwords  SEO etc and build things that people will actually use. 

The other comments about the article seem to focus around saying that we are in a bubble and companies are going to crash and burn etc etc etc.

I think there is a little bubble of stupid ideas, and many many people can’t seem to understand that you need to build products for the mass market  not for a bunch of extreme techies that just jump from one thing to the next.

If you have a lot of traffic  you can always monetize it.   The days of  the first bubble are long gone and there are now hundreds of thousands of sites looking to sell stuff online and buying advertising.  

The worst you could possiblely do with an advertising model is make 1 cent a unique visitor per day.

digg.com  800k uniques a day? = $8,000/day from advertising.

If you sell stuff you could of course make well over $1.00 a unique visitor per day.

Quote from the article.

“Paul: What I tell founders is not to sweat the business model too much at first. The most important task at first is to build something people want. If you don’t do that, it won’t matter how clever your business model is.

Of course you have to have a business model eventually. But experience so far suggests that figuring out how to make money from something popular is a lot easier than making something popular. “

In my opinion  if the cost of your operations are 2-3 cents a unique visitor  chances are plain advertising will bring you to profitability.   If your costs are over 10 cents a unique visitor then you will need to sell a product or service  this of course assumes a high traffic site with at least 100k uniques per day.    In about 2 years from now we will probably see a 30-50% decrease in operational costs as hardware and software costs continue to fall.

57 Responses to “Making Money Online Stats.”

  1. Dennis Kubes Says:

    The reverse is also true. If you build a site with really great technology but which doesn’t give people a reason to come back over and over again, it is very difficult to build a sustained business.

  2. Money Making Forum Says:

    Very good insight Markus, thanks for advertising example

  3. Nick Says:

    digg.com 800k uniques a day? = $8,000/day from advertising.

    Is that a true number? And I thought that some of my sites have really bad eCPMs :)

    Anyway the advice about the business model is very wise. An adittion is that you should first worry about making a good stream of traffic to your site, and then about monetizing.

    Most of the webmasters I know are using all their time to make their sites more profitable while they have 500 visitors per day. That’s not right :)

  4. Markus Says:

    CPM’s are a completely meaningless number because the pageviews per unique users can be 100:1 for something like myspace and 2:1 for something like cnn.com but the revenue per unique user is pretty much the same.

  5. Life A Venture Says:

    Good insight. If you can get a lot of traffic with reasonable cost, you can make money.

    I have compiled a list of web sites and their effective CPMs (monthly revenue vs pageviews) based on public information.

    http://lifeisaventure.wordpress.com/2006/08/28/how-much-money-do-you-generate-per-pageview/

  6. Jon Asher Says:

    What surprised me about the Scoble article:
    “But Joe Kraus, CEO of Jotspot, let slip that he’s hired a person who is just analyzing how good their keyword advertising is working”…

    If a startup the size of JotSpot only recently hired someone to analyze keyword ROI, you have to wonder how many internet companies don’t get the importance of mastering the online ad game. It can make or break a startup.

  7. webdigity Says:

    Another great advice from this interview is this :

    We’re pretty open about what we think makes a technology stick. We print it on T-Shirts: “Make something people want.” If you had to reduce the recipe for a successful startup to four words, those would probably be the four.

  8. Home Internet Based Business Opportunity and Making Money Online Says:

    Very Nice Article – Thanks for sharing your views.

  9. Money Making Forum Says:

    Great compiled list of sites Life a Venture, thank you.

  10. Rafidah Says:

    is it the same with the affiliates marketing? we advertise some company links using our id link. and if people click our id link and purchase good from the company we will get a bonus from it?

  11. WebBrander Says:

    interesting post, the thing about cost per unique user is that it can be spread over time in some examples such as a search engine, most of the money and work will be invested at the beginning.

  12. raj Says:

    The worst you could possiblely do with an advertising model is make 1 cent a unique visitor per day.

    What?! The worst you could do is $0.00 per unique visitor? I wish it were $0.01/unique visitor. I’m hovering between $0.00 and $0.02, but usually sub-one cent.

  13. raj Says:

    OOops. There shouldn’t have been a question mark after the 2nd sentence.

  14. Christene Says:

    I except the fact. The insight was good. But whatever the site is, can anyone tell me what will work? Maybe something of the sort of Web 3.0? Possible? Hopefully there are sites like http://www.funzooz.com that brings smile about something.

  15. Abiquddoos Says:

    Good insight……….!

  16. Destra Says:

    Great stuff markus, it’s always a pleasure getting a tips from the adsense’s king…

  17. Pat Says:

    thats a great article, not sure about earnings of some sites though

    Pat

  18. Andreas Loose Says:

    Very well written. Thanks!

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    as always informative and a great read. thanks.

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