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New Business Models Emerge For the Web


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I am constantly impressed by the crazy amount of energy entrepreneurs spend hatching innovative services, so I have never understood why they seem to spend so little time figuring out their business models.

Most end up banking on their ability to sell ads to pay the bills and make money.

Everyone manages to convince themselves that they'll be the one startup to break out of the pack and make this work. But this ignores the truth that no matter how much advertising revenue shifts to the Web, there isn't enough to support even a tiny fraction of these startups.

But at last, we are seeing some tremendous breakthroughs in innovative business models for Web businesses.

From San Jose Mercury News
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