$12 billion was spent in online advertsing in 2006...Google has built their business almost entirely on advertising...Online advertising $ is skyrocketing while TV and print are stagnant.<p>Advertising is a perfectly legitimate business model.
According to Techstars and Ycombinator; they pick startups because they like the founders not necessarily the business model but; I've looked at some of the startups that have received funding and I know I'm not a zillionare but they seem to have very questionable income models. If you take advertising out of the equation, I'd guess many of them don't have an income model. <p>Here's my guess at the business model; get the mentors at Techstars or Ycombinator to help you develop your company. (i.e. get as many people using your site as possible, probably for free) Then since there really isn't a real revenue source, after you get a lot of eyeballs you sell the company to some larger company. Wah La ~ Web 2.0<p>I don't want to sound like I am indorsing or rejecting anything I would just like to see more creative income models.
xobni - has a business model - charge users,<p>auctomatic has a business model - subscriptions<p>weebly could have a business model - pro features<p>virtualmin has a business model - charge users<p>whitenoise networks - charge bands & managers<p>View 3 - licensing<p>Buxfer - subcriptions/pro features<p>Justin.tv - build userbase & eyeballs - advertising (traditional tv model)