homepage Welcome to WebmasterWorld Guest from 54.226.10.234
register, free tools, login, search, pro membership, help, library, announcements, recent posts, open posts,
Become a Pro Member
Home / Forums Index / WebmasterWorld / New To Web Development
Forum Library, Charter, Moderators: brotherhood of lan & mack

New To Web Development Forum

    
How does a site with 180K visitors/day become a company?
dailypress

WebmasterWorld Senior Member 5+ Year Member



 
Msg#: 4071577 posted 8:20 pm on Jan 31, 2010 (gmt 0)

I was looking for a new job when I noticed a popular social network website has 180K visitors/day and had hired over a dozen staff and is still hiring!

Do they get money from angel investors or does that traffic pay off the bills?

 

BillyS

WebmasterWorld Senior Member billys us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 4071577 posted 8:46 pm on Jan 31, 2010 (gmt 0)

Let's try and guess...

180K x 3 pages per visitor = 600K pages per day

It's a social network, so let's say $5 CPM. So that would be 600 x 5 = $3,000 / day or roughly $1M per year.

It's doubtful the traffic pays those bills.

StoutFiles

WebmasterWorld Senior Member 5+ Year Member



 
Msg#: 4071577 posted 10:14 pm on Jan 31, 2010 (gmt 0)

Can't see how a social network would have a CPM of $5. People on social networks aren't looking to buy things.

BillyS

WebmasterWorld Senior Member billys us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 4071577 posted 10:43 pm on Jan 31, 2010 (gmt 0)

I'm trying to give the site the benefit of the doubt. Even with a HIGH CPM of $5 (for a social network), the traffic still only works out to a million dollars a year.

With a staff of 12 or more people, that doesn't seem like enough traffice to pay everyone.

dailypress

WebmasterWorld Senior Member 5+ Year Member



 
Msg#: 4071577 posted 3:52 am on Feb 1, 2010 (gmt 0)

never mind the salary they pay, but the other costs of running a company (buildings and ...) involved just doesnt match up with the earnings!

Jane_Doe

WebmasterWorld Senior Member jane_doe us a WebmasterWorld Top Contributor of All Time 10+ Year Member



 
Msg#: 4071577 posted 7:26 am on Feb 1, 2010 (gmt 0)

never mind the salary they pay, but the other costs of running a company (buildings and ...) involved just doesnt match up with the earnings!

I was looking at Alexa the other day and I noticed that my busiest site gets more traffic than the site for a .com where someone we know works. They make a lot more in revenues than I do, but I actually make more net profit than they do because I don't have much in the way of expenses. The dot.com has pretty much been living on investors money for a number of years.

lammert

WebmasterWorld Senior Member lammert us a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



 
Msg#: 4071577 posted 9:58 am on Feb 1, 2010 (gmt 0)

Do they get money from angel investors or does that traffic pay off the bills?

They do what other "normal" businesses do. They write a bulky business plan, buy a nice suit and go to the bank to beg for money. This gives them a few years breathing spell to build their business. After that period they are either successful, bought by a competitor or bankrupt.

I personally find CPM not the best method to calculate revenue for sites where people are viewing a relatively large number of pages like on forums or social networking sites. Each individual person only wants to leave the site once per visit (either directly or via an ad) and I think adding a value per visitor is better than adding a value per page view. If we take a CPV of $5, we get $330,000 per year. Certainly not enough to pay the wages for 12+ people and all additional costs in any decent country. They must be gambling on expanding their business to become profitable. That is probably also the reason they are hiring now. Their business plan demands them to do so.

neostar

5+ Year Member



 
Msg#: 4071577 posted 6:11 pm on Feb 14, 2010 (gmt 0)

aggre with lammert, their bussness plan want them to do so

Global Options:
 top home search open messages active posts  
 

Home / Forums Index / WebmasterWorld / New To Web Development
rss feed

All trademarks and copyrights held by respective owners. Member comments are owned by the poster.
Home ¦ Free Tools ¦ Terms of Service ¦ Privacy Policy ¦ Report Problem ¦ About ¦ Library ¦ Newsletter
WebmasterWorld is a Developer Shed Community owned by Jim Boykin.
© Webmaster World 1996-2014 all rights reserved