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Web 2.0 Consolidation?

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Anyway, today he writes “It’s amazing to me how many startups I talk to plan on making money via advertising, tell me about all the big numbers they’re going to post, and haven’t done this basic math.”

This is something I’m thinking to myself more and more too as I meet more and more startups. There are a TON of startups chasing advertising dollars. I wonder to myself how many really will be successful? Sure PlentyOfFish has gone nuclear. But he’s a one-guy business who is in a highly engaged audience type (dating). He says he makes $10,000 a day or more from his Google ads. I believe him, too, cause he’s seeing millions of visitors a day.

Oh, and to those people who say I never say anything nice about Microsoft, note that I am praising Microsoft here (he runs on .NET and says his system runs on far fewer servers than his competitor, Match.com does).

Anyway, back to the point. Lots of these companies are funded by venture or rich investors. At some point the revenues will have to kick in or else the founder will be kicked out and the service sold.

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