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Am I the only one to notice that both AirBnB and DropBox actually have a viable business model and a real way to make money?

I think this would be a good metric. I mean think about it, if you're a startup and your only strategy is to burn money making an awesome product that's free, how on earth are you going to return 1000x on investment?



I have no idea, but isn't that exactly what Facebook and Google did?


Facebook (AFAIK) is not quite profitable yet, but it does have a business model: selling ads. The same business model that Google used, and the same business model that the TV industry has been using (very successfully) for decades.

If you build a company with no business model other than hoping for a nice exit (usually as a talent acquisition) there's no chance that you can give your investors 1000x returns. This should be obvious.


I assume that any awesome product that's free can sell ads, since people will be looking at it.


When Google launched, being ad supported was still highly lucrative. It was a different time.


It still is highly lucrative ...


I guess I should have said "ridiculously lucrative" or "stupid mad money yo."




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