So what does it take to earn $50 million a year in ad revenue?

NY TimesThe NY Times has a pretty good description of what it takes to earn $50 million a year in ad revenue off a startup ad-supported web site. Some of the background for the article comes from Jeremy Liew, from Lightspeed VC.  My first thought is that most startups need to work towards many other things before they think about $50m. Let's work towards a good customer base, loyal users, virality, and others.

Tim O’Reilly, the chief executive of O’Reilly Media, says, “This may be why more entrepreneurs are going for low-investment sites that don’t need an exit but provide ‘lifestyle businesses’ for their owners.”

I think over the next 5-10 years, we will see hundreds, if not thousands, of new Internet businesses that are able to let the owners live comfortably with a very small team (if any) and afford the things in life they want. Not everyone is looking to build the $1.5b takeover sites.

Mr. Mitchell says, "But to make $50 million with a big staff-produced content-rich guitar site, sponsored by, say, Fender and Gibson, a site would have to generate more than 200 million page views a month, Mr. Liew estimated. "

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COMMENTS - Add New Comment
Submitted by Darren Stuart on March 17, 2007 - 4:53pm.

I totally agree and I think there are a few sites out there already doing this.

a passion site around guitars in on ideas list, good to know someone else thinks this is a good market to be in.

Submitted by jeremy liew on March 17, 2007 - 9:12pm.

Hi Allen,

Note that the quote you attribute to me was actually from the NY Times writer, Dan Mitchell, not from me.

Submitted by centernetworks on March 17, 2007 - 10:50pm.

Jeremy - thanks for stopping by and for the correction! I made the edits.

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