April 29, 2008
Advertising May Not Pay For Everything After All
It’s been a while since the last poke at the idea that revenues from advertising my support a huge number of (digital) businesses in the future but this bit of news woke us up. Slide founder Max Levchin has said that his company is looking at other revenue streams beyond advertising. News.com reports:
“Trying to shift away from advertising partially and going direct to consumers is a really good idea, because it cuts out one more party from the equation,” he explained. “During a recession time you don’t have to worry so much about building an enormous scale, you just have to build up a loyal base of fans that pay you a little bit.”
“Nobody knows what’s going to happen in the recession. It might take five years,” Levchin said. “It has proven to be clever of us to raise money just before the signs of the recession started. It really is a war chest, both for acquisition and for survival.”
[via Valleywag]
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