Andrew Chen: Your ad-supported Web 2.0 startup is really a B2B enterprise in disguise

Clever take on the situation. However, unlike a straight up B2B play, you do still have a huge chunk of your company doing B2C work, and the more good you do in the latter, the easier the former gets.<p>Ask the engineers at Google and Facebook whether they feel like they're unimportant even though they're not directly bringing in the money for their company.

"You have to make your product better not through superior technology, but often through superior PR, sales operations, or other non-geek issues"<p>Better sales/PR does not make what is being sold better. It is business development, not product development.

I think Andrew's making a good point here -- if you can offer some sort of value-add to your customers, it'll help diversify your business. Virtual goods (have to be scarce and desirable!), extra services, special privileges all qualify.<p>But you don't need a gigantic avalanche of hits to make an ad-supported site work, <i>if</i> your goal is to make a business that adds some cash to your pocket or might be picked up by a large organization.<p>The days when every startup dreamed of IPO and sky-high revenues are over. Most of us, I dare say, aren't shooting for that at all.<p>Yes, plentyoffish (god's favorite example) does make millions per year from ads. Like $9 million. I don't need $9 million. $2 million would be fine. Selling the business for $9 million would be even better.