Recently we have been seen some startups close their shop simply because they dint have the money to keep up with expenses and no one wanted to buy them out of a massive debt hole. We can only wonder, whats up with all this startups not having a profitability plan on their hands? Can all of them be taken has serious business? I mean, what serious business only rely on ad clicks for money?

While recently all the online business going down seem to be just the music related starups( Is not easy to make money  in a f*cked up industry anyway) we all now that many of the sites we use and love don’t charge us a dime and their only plan for making money seems to be putting up huge ads. For me their principal error is to think that having a huge community means more people will click ads = more money…Not thinking about the much higher expenses that come with more users.

In the other hand we have the crazy out of their mind Vc’s giving millions on funding to anyone that makes a promise that he’s gonna create a website thats gonna be mentioned on Techcrunch.com. After they have millions they just burn the money going around in circles trying to figure out how they gonna make a proffit out of their huge but costly community.

To all online startups, just beacuse you are a “virtuall” bussines does not mean that basic bussines rules do not apply to yall so please have a plan on hand next time you make me waste time on your website only for it to dissapear later on  :]