got to this through a friend who passed it on saying it makes an interesting read, it surely does make an interesting read but not necessarily an entirely true one.

Yes of course those times are gone when you would buy in bulk on newspapers and resell them, but mind you those business models still do exist in the outdoor business where they buy in bulk and resell.

anyways the point that i disagree with is that you cant buy ads to increase your own ad revenue, with the changing landscape and buying capabilities where you buy only performance that changes the whole ball game, going back to your example of buying ads for dressupmodels.com if you change those to clicks like you would on Google it works perfectly for Desmond both in terms of sales and in terms of ad revenue.

also i believe you do not necessarily have to sell things via Google, we have seen perfect examples of sites both who have inventory sold out and who have too little inventory running SEM campaigns to increase their traffic to sell more ads

Just my POV

Cheers

Very nice post. You have nailed the problem of ad-based revenue generation model because many e-businesses are started with the revenues in mind and hoping that these tiny drops add up to an ocean one day (infinitely into the future). The dream is that when the ‘one day’ comes about, they need not have to spend on advertising because the traffic is expected to have multiplied many times in the few months of the website’s existence and every dime will be pure revenue.

So, like the saying goes- what is life without dreams?