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  1. #1
    SitePoint Zealot
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    I have a feeling that small sites (under one million page views will be left with no income potential other than affiliate pay per sale offers. With correction in the market
    most sites can not afford to stay online. So far I have seen
    20 web sites go down due to lack of income. Is it worth it to stay online?
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  2. #2
    Serial Publisher silver trophy aspen's Avatar
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    Eventually advertising revenue online will rival advertising on more established mediums.

    You see the problem is people see internet advertising function differently then say TV advertising.

    Coke will put out an ad on TV in hopes that people will see the ad, maybe go get a coke out of the fridge, or remember the ad next time they're thirsty in the gas station or grocery store.

    It works the same online, but the problem is you aren't seeing ads like that online yet. Because online an advertiser can see exactly what his ROI is. He can track how many people click on the banner and whatnot, he expects a lot more from internet advertising then from any other medium, and his expectations are probably too high.

    But eventually the internet will be a place where you can not only advertise your website (I'm sure coke.com is very useful) but also brand your product. Eventually, as that happens, revenue from internet advertising will become more in line with other mediums.

    Chris

  3. #3
    Serial Publisher silver trophy aspen's Avatar
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    oh, and it seems to me that most of the recent dot-com deaths have been to online stores, not content driven sites that rely on advertising.

  4. #4
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    Well as Online Stores go down the advertising goes down as well and content driven sites will end up with no income.
    It is all related.
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  5. #5
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    My issue exactly!!!!

    I am actually involved in a BETA test of a Fantasy Football content site this season. I am having a delema about whether to charge a subscription rate to Fantasy Football league commisioners who wish to use the service, this is a fairly standard practice for such a customizable fantasy football league manager. I don't think I can bring in enough money to make it free and live off the ad profits. I can get many more league to join if it is free, however, I would need to make about $5 per user in a 17 week timefreame. Most users come to the site 2-3 times a week and have about 25 page views while they are at the site. That is a total of about 1000 pageviews per person per season, however most place have restrictions on pageviews per IP per day so this might actually only count as 3 pageviews, thus my sold pageviews could be as low as 50 per user per season. So I am thinking subscription, what do you think out there?
    Craig D. Parker
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  6. #6
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    >So I am thinking subscription, what do you think out there?

    Getting money from subscriptions could be hard, I think people would be scared and leave the site. Not many sites I know about has succeeded in creating a subscription based site, and it is extra hard to get users for a totally new service - I mean today dot coms PAY affiliate money to get people sign up for FREE sites...

    So, what about both? Default = free and ad supported. With an option to pay to get rid of ads?
    Stefan
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  7. #7
    Your Lord and Master, Foamy gold trophy Hierophant's Avatar
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    Originally posted by VW
    Well as Online Stores go down the advertising goes down as well and content driven sites will end up with no income.
    It is all related.
    The online stores that are dying are the ones with no infrastructure. Your starting to see major retailers enter or re-evaluate their place in the Online Marketplace.

    Toys R Us recently scrapped their multi-million dollar site to partner with and capitalize on Amazon.com's market penetration.

    The B2B market is growing phenomanally and is expected to top 1 trillion annual dollars spent soon. This is a large marketplace. To get the B2C marketplace going we need more security and ways of putting customers at ease with their purchases and so they don't worry about their income and lives getting stolen online.

    Credit Card companies are starting to do their part with temporary card numbers only good at a particular location or for a set amount. This will help make consumers at ease. Consumers comfortable in their environment are more likely to get their wallets out and spend money.

    This will bring back the advertising. Sites will survive. In the United States, Television is the biggest medium with trillions of dollars spent annually on advertising. Even the free broadcast channels have no worry of going under. As Aspen stated, this will eventually come to the Internet as well. You will see it more and more as Interstitial Ads (think commercials between loading pages) and other forms of Advertising become more accepted.

    Subscription sites that offer some freebies and great service will succeed as well as content sites that build a solid base. The key is to find a Niche, don't try to be everything to everyone. Take your Niche and expand on it to your market. Then you can work with highly targeted advertising that will pay off in the long run.
    Wayne Luke
    ------------


  8. #8
    SitePoint Zealot Tiger_Tom's Avatar
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    I rarely agree with Luke, but this time he's right.
    I'm a cyncial man, and every time I see another 'me too'
    site go bust, I have a good old chuckle. Why? Because sure ways of going bust on the internet are:

    1. Entering an already saturated market (another travel/webmaster resource/web-hosting/CD/games/general entertainment site anyone?). If there are already big, well-established sites in the field you're going for, have another think about it.

    2. Throwing a lot of money at it up front, without having a decent income from it (in a small way), already. And then looking for 'second round' funding! This IPO lark will be looked on in years to come as a form of collective madness.

    I think most big successful businesses were small successful businesses along the way.

    TigerTom
    http://www.tigertom.com - skint, but happy.





  9. #9
    Serial Publisher silver trophy aspen's Avatar
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    Tiger Tom just made me think of something else.

    Alot of broke businesses are not the sitepoint's of the world or anything like that.

    They are the bigger businesses funded by market capital who bit off more than they can chew.

    The content or other site started by a teenager in his bedroom (the majority of peoples sites on sitepoint fit into this) is not the site that goes bust... probably because most of us have other jobs. We hope one day we wont need another job.

    All these already big companies or venture capital funded websites are what go broke, they don't understand the internet enough, they spend too much money to create something like a portal site that is 10 years late for the prom and then wonder why they lose money (NBC ring a bell?)

    And then they also all want to be Microsoft and to use wayne's phrase want to be "everything to everyone"

    Chris


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