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Many attribute this approach to greed. I attribute it to a marginal revenue model. Online advertising has grown by leaps and bounds since its collapse at the dot-com implosion.
You Need Lots of Traffic. Regardless, you need a lot of traffic. As an entrepreneur, you want to maximize profits while minimizing expended resources, which means advertising will be an illogical choice in most cases.
Advertising is Less Profitable So, after 6 years, Copyblogger is right at the million-page-view per month point. If we had an advertising model, we would have made about 20 times less revenue last year in comparison to the model we have, which is selling software and training.
Even among truly high traffic sites, advertising rarely stays the primary profit center. Advertising revenue can cover expenses and turn a profit if you have a ton of traffic, but what next?
Take the tech blogging world. Tom Foremski spells out the real peril of page view journalism in one paragraph: Media organizations need to adopt a multi-revenue business model, or what I call a Heinz 57 model.
The thing is, you can start your company by selling products, services, or events, and make more money without needing all that traffic. Take Apple, for example. People love Apple products. They stand in line to spend hundreds or thousands of dollars on Apple stuff.
They wait by the front door for the new iPad to arrive. At best, they tolerate it, and at worse, despise it. When in search mode, people are happy to see highly relevant advertising.
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Why not make stuff people love? Brian Clark is Editor-in-Chief of Entreproducera multimedia email publication exploring the business of independent digital media. Get more related content on Twitter.A summary of Act One: Scene Three in August Wilson's Fences.
Learn exactly what happened in this chapter, scene, or section of Fences and what it means.
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