Comments on: Glam’s $1.3B Valuation Explains Why Start-Ups Chase the “Build Now, Add Revenue Later” Model http://www.marketingpilgrim.com/2008/05/glams-13b-valuation-explains-why-start-ups-chase-the-build-now-add-revenue-later-model.html Internet Marketing News Sun, 21 Mar 2010 01:14:13 -0400 http://wordpress.org/?v=2.9.1 hourly 1 By: MB Web Design http://www.marketingpilgrim.com/2008/05/glams-13b-valuation-explains-why-start-ups-chase-the-build-now-add-revenue-later-model.html/comment-page-1#comment-50621 MB Web Design Sun, 22 Jun 2008 13:25:20 +0000 http://www.marketingpilgrim.com/2008/05/glams-13b-valuation-explains-why-start-ups-chase-the-build-now-add-revenue-later-model.html#comment-50621 On the face of it, turning down 1.3B having not turned a profit and spent 100M might seem foolhardy but if you think about it... No, I'm struggling to find sense out of that decision. It's brave but a choice that might prove foolish in the long run, I fear. Though it's a "model" that turns business school tuition on it's head, that does not necessarily mean it's a bad decision. The question it, do the investors see the offer rejection as a poor decision? On the face of it, turning down 1.3B having not turned a profit and spent 100M might seem foolhardy but if you think about it… No, I’m struggling to find sense out of that decision. It’s brave but a choice that might prove foolish in the long run, I fear. Though it’s a “model” that turns business school tuition on it’s head, that does not necessarily mean it’s a bad decision. The question it, do the investors see the offer rejection as a poor decision?

]]> By: RIchard Srery http://www.marketingpilgrim.com/2008/05/glams-13b-valuation-explains-why-start-ups-chase-the-build-now-add-revenue-later-model.html/comment-page-1#comment-50094 RIchard Srery Sun, 15 Jun 2008 13:42:03 +0000 http://www.marketingpilgrim.com/2008/05/glams-13b-valuation-explains-why-start-ups-chase-the-build-now-add-revenue-later-model.html#comment-50094 Andy, You so hit hte mark on this one. There are constantly new inventoment models being tried out every day and this one, by far is one I am following with a great deal of interest. Andy,

You so hit hte mark on this one. There are constantly new inventoment models being tried out every day and this one, by far is one I am following with a great deal of interest.

]]> By: Andy Beal http://www.marketingpilgrim.com/2008/05/glams-13b-valuation-explains-why-start-ups-chase-the-build-now-add-revenue-later-model.html/comment-page-1#comment-48638 Andy Beal Fri, 30 May 2008 14:15:53 +0000 http://www.marketingpilgrim.com/2008/05/glams-13b-valuation-explains-why-start-ups-chase-the-build-now-add-revenue-later-model.html#comment-48638 @Scott - first thought, would you like to broker the $1.3B deal for Glam? ;-) Second thought, revenue sharing with those that create your content for you, is an interesting but underutilized model right now. @Scott – first thought, would you like to broker the $1.3B deal for Glam? ;-)

Second thought, revenue sharing with those that create your content for you, is an interesting but underutilized model right now.

]]> By: Scott http://www.marketingpilgrim.com/2008/05/glams-13b-valuation-explains-why-start-ups-chase-the-build-now-add-revenue-later-model.html/comment-page-1#comment-48631 Scott Fri, 30 May 2008 13:48:16 +0000 http://www.marketingpilgrim.com/2008/05/glams-13b-valuation-explains-why-start-ups-chase-the-build-now-add-revenue-later-model.html#comment-48631 I would be absolutely floored if Glam walked about from $1.3B. That is obviously more than MySpace received when it was top dog! Valuations will start to fall in this space unless these businesses can rapidly scale profitability and various monetization models. Social Networks and/or Social Sites appear to be going about their revenue models in a very simplistic manner. Banner ads just seem such the path of least resistance; I still question the eyeballs and click through rates. We as content consumers still have banner blindness and the whole dynamic of social media allowing for more pull than push marketing is not being optimized with the banner model. A great discussion is going on here about "The fork in the road for social media" --- regarding their monetization models: http://www.readwriteweb.com/archives/the_fork_in_the_road_for_social_media.php. It is my belief that if many of these networks can get their arms around a hybrid affiliate marketing, revenue share, product/service/experience review model allowing their members to monetize their own reach/content with their personal audience, it could be a success. For such a model to succeed, practices of honesty, transparency and disclosure would need to be implemented. While very controversial and disruptive, PayPerPost, PayU2Blog, ReviewMe, etc may be on to a successful model which could be parlayed and tweaked for other social networks. Beacon was a failure; but a great example of this initiative is RadicalBuy over at Facebook. Any thoughts? I would be absolutely floored if Glam walked about from $1.3B. That is obviously more than MySpace received when it was top dog! Valuations will start to fall in this space unless these businesses can rapidly scale profitability and various monetization models.

Social Networks and/or Social Sites appear to be going about their revenue models in a very simplistic manner. Banner ads just seem such the path of least resistance; I still question the eyeballs and click through rates. We as content consumers still have banner blindness and the whole dynamic of social media allowing for more pull than push marketing is not being optimized with the banner model.

A great discussion is going on here about “The fork in the road for social media” — regarding their monetization models: http://www.readwriteweb.com/archives/the_fork_in_the_road_for_social_m edia.php.

It is my belief that if many of these networks can get their arms around a hybrid affiliate marketing, revenue share, product/service/experience review model allowing their members to monetize their own reach/content with their personal audience, it could be a success. For such a model to succeed, practices of honesty, transparency and disclosure would need to be implemented. While very controversial and disruptive, PayPerPost, PayU2Blog, ReviewMe, etc may be on to a successful model which could be parlayed and tweaked for other social networks.

Beacon was a failure; but a great example of this initiative is RadicalBuy over at Facebook.

Any thoughts?

]]> By: Nicole http://www.marketingpilgrim.com/2008/05/glams-13b-valuation-explains-why-start-ups-chase-the-build-now-add-revenue-later-model.html/comment-page-1#comment-48540 Nicole Thu, 29 May 2008 15:51:35 +0000 http://www.marketingpilgrim.com/2008/05/glams-13b-valuation-explains-why-start-ups-chase-the-build-now-add-revenue-later-model.html#comment-48540 This beats everything that one learns in business schools. Reminds me somehow of pyramid schemes! This beats everything that one learns in business schools. Reminds me somehow of pyramid schemes!

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