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How many users do you need for a 100MM / year consumer Internet product?

58 pointsby huangmabout 14 years ago

5 comments

corin_about 14 years ago
It really depends on the audience as to how much you can sell adverts for (and, of course, on how good you are at selling those adverts).<p>It isn't at all impossible to get $10-$20 CPM for basic standard banner adverts, then you can charge higher rates for, as an example, video pre-roll adverts, and you can work on bespoke marketing campaigns to complement banner advertising, which again can provide higher profit margins.<p>The above is from personal experience. For example, the company I've been with for the past few years (essentially since they decided to expand away from being a single website) manages to employ a handful more staff than Reddit on 20m monthly page views.
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akronimabout 14 years ago
In stark contrast to B2B where if you get the right niche you can be charging a few thousand per client per month. Even one client == ramen profitable. Then again I guess it's not as cool as having the millons of users required for B2C!
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vakselabout 14 years ago
those numbers are probably off...I mean reddit can be considered a very popular consumer internet product(top 150 on Alexa)...and they just hit 1 billion page views per month, and they are having trouble paying for more than 5 people.<p>So if $100mm = 100 billion page views/yr. Then by that logic reddit should be making ~12 million a year, which doesn't seem to be that case.<p>And that would be in addition to the subscriptions people are buying.
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spencerfryabout 14 years ago
Here's a link to the question on Quora:<p><a href="http://www.quora.com/What-is-considered-a-significant-number-of-users-for-a-free-consumer-internet-product" rel="nofollow">http://www.quora.com/What-is-considered-a-significant-number...</a>
bpetersabout 14 years ago
I like the sudden advert to Groupon lumped into the Ad-based business model.