Taking a break from work and blowing through my Bloglines feeds when I hit The New Publishing Model by Jason Calacanis. Love him or hate him (I totally <3 Jason), I think he’s dead on in his breakdown on the growth of sites in relation to their advertising revenue models:
Here is the new model:
- Start a blog with adsense and make spare change.
- Scale a blog to 250k to 1M pages a month and become big enough for Federated Media, AdBrite, and Blogads to care about you (i.e. sell you’re inventory)–now you’re making a living.
- Scale over 1M pages a month and become big enough that you can afford your own sales group and fire Federated Media for taking 40% of your money because your cost of sales will be 15-20% as a stand alone business.
This is exactly what happened at the start of the Internet. DoubleClick used to do ad sales just like Battelle is doing at Federated Media. They got out of that business because the reward for helping a client to phase three was that they fired you–it sucks as a business…
All you video sites out there now getting hellza traffic should pay attention to this.
3 Comments
Hey Michael!
I’m bummed that GVOtheD died but I’m glad to see you still going strong here! I didn’t realize that this was your main place of biz.
Wanted to let you know that I moved my blog from blogger to tvinjapan.com if you were interested at all.
Hope all is well.
Yours,
Gavin (TV in Japan)
Thanks, Gavin! I will go and update the link to TV in Japan at GVOD for you. I also have a new video-related venture in the works (shhh… it’s a secret!).
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