Pre-Revenue
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How Digg is Profiting from All This
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Google Smackdown!
How to Read TechCrunch
38 Comments so far
Does this sound familiar? A bit like the first web “bubble?” Remember all the sites that explained how loosing money meant you had to be spending it on R&D and would be the next “killer app?” Didn’t exactly work out like that.
What you wrote about expecting to get acquired reminds me of Seattle’s Best Coffee; it was in their business plan since Day One to get bought out by Starbucks. A year or two ago, they accomplished their goal. Compare that with the several hundred other coffee companies in my city alone who didn’t get bought … and it reinforces what you ( and Wired ) wrote.
I can’t wait until Google buys all of my websites, that will be amazing. Actually people are just stupid if they’re going to be able to sell a site that isn’t generating revenue already. How do they expect the buyers to judge what they’re worth?
The key here is to wait another year, get the revenue coming in and then kill it. Forget about auction style - get a reputable broker and make a legit business sale.
I understand what you mean about the need to move from pre-revenue to having an actual revenue stream; but there are some significant instances of companies that had no revenues for extended periods, then went on to achieve great success. Google, for example.
Easier said then done depending on your market but I understand your opinion. I’m working hard to get my business up and running and hopefully it will eventually blast off!
I don’t think, that advertising is a reliable business model. I think as an entrepreneur you have to think from the first minute on about getting money.
Hmmm….pre-revenue. They find terms to sugar coat everything don’t they? And in this “too much is never enough” day and age - I guess we all will be permanently “pre-revenue”.
yeah, that’s so true, now that you mention it. i wonder what’s motivating vc’s to continue investing in these startups? the whole mentality is different … it’s accepted, and even expected, that sites will operate with a deficit, yet the funding still comes in
i remember a few years back when it was such big news that Amazon.com, after 10 years (?), finally started making a profit … set the stage for everyone else, i guess
“pre-revenue” sound like terms from Minority Report… “pre crime”.
We shall see.
I don’t think like that. it is the creative part. It will help the iternal quality of something, somebody. Thanks for sharing the article.
i agree with Lihue Kango, there are some significant instances of companies that had no revenues for extended periods. thanks for sharing your view with your readers.
I think if you have a unique idea and a proper marketing strategy and if you have the will power u can try it that if you have no revenues for some periods thinking about the long term period u will get success. Anyway thanks for the informative article.
I agree to Online Money, you need a unique idea and a proper marketing strategy.
But this is not easy…
Thanks for the informative article.
If you have an effective business plans and strategies, that makes you earn more revenues.
Starting a business is challenging and risky thing to do.
I agree with your post..But lets see how it goes on
I think, it’s time to start and get a little bit more entrepreneurical. With the right business in your hands it’s easy in this days for getting real money!
Right business? Who is shure that his business is right?
I’m intested in seeing what happens to sites like Facebook and Myspace. Obviously they are bringing in money, but will they really hit it big? I think you’ve got to start bringing in revenue fairly soon in any business.
An older friend of mine who is retired used to dream of buying a lottery ticket that would become his chance at easy street. Now instead of playing the state run lottery everyone is playing the Google lottery. I think I have a better chance at the state lottery!
Hmm, how to start a “pre-revenue” company and have someone fund it for a few years. Living off someone else’s money while I figure out how to make money.
Wow! What a business plan!
i think it’s similar to what doshdosh has described in her blog - that you shouldn’t focus on profit when you initially startup your blog..
Facebook’s buisiness get better
It’s all part of the great bubble. Just look at Google’s share prices 700 Its now one of the biggest 5 companies in US. But does it really have a tangible product that’s worth that much. What’s to stop it from deflating like Yahoooo!
I would highly suggest figuring out how to make money if you want to sell a business. Otherwise you’ll get a terrible terrible price.
OK, where is the business plan/model in this? Sit around and eat bon-bons on someone else’s dime? Great work, if you can get it!
Shouldn’t one know how to make money before they start a business, or is that being too logical?
I don’t know about that. We will see.
“pre revenue” sounds great to me.
me too!
Starting a business is not that easy. There are lots of things you need to focus your attention like having great marketing strategies and good business plan. You just not think on how to make money but how you will be able to deliver quality products and services to your customers. If you have that, I think you will be able to earn more revenues.
It all depends on the value that the newly formed entity has on the eyes of the buyer, that’s why focusing on quality and potentially profitable ideas will bring bigger revenue and higher acquisitions prices when the time comes.
It all depends on the value that the newly formed entity has on the eyes of the buyer. That’s why focusing on quality and potentially profitable ideas will bring bigger revenue and higher acquisitions prices when the time comes. Javier.-
It all depends on the value that the newly formed entity has on the eyes of the buyer, that’s why focusing on quality and potentially profitable ideas will bring bigger revenue and higher acquisitions prices when the time comes. Sorry, for my duplicate posts. It wasn’t my intention. I mistyped the URL. Javier.-
Thanks for the Post.
How can anyone fall prey to the myth that you can nothing for something? If your site isn’t worth anything to you why would anyone want it not to mention pay money for it!?
Nice
Thanks for post! It’s really interesting for me
Hmmm… “Pre-Revenue”! I don’t know much about it. Thanks for the informative article. Overall, very impressive.
These are some really good tips. I agree with them so much. People definetely shouldn’t be focused on makng money at the start. Because if you invent something cool e.g facebook, the money will eventually continue to flow in.
i totally agree with “Online Money”