Comments on: Digg Revenue Tripled, But “Not Profitable Yet”

By: Adam

Adam — Fri, 07 Nov 2008 01:26:53 +0000

In terms of CPM could it be that Digg users are more ad blind than most and they can’t even get $1 CPM?

By: Alex Ion

Alex Ion — Mon, 03 Nov 2008 23:28:03 +0000

I definitely love the approach on that one. You’re right on track, and i second you when you say that something is “fishy” in there. Digg sees the iceberg … They’ll either hit it like the Titanic, or if they acknowledge, they’ll only scratch their body a little bit, but still some bads will happen.

By: Scott

Scott — Mon, 03 Nov 2008 01:55:58 +0000

Yeah, and at the end of the day, the VC’s all pile into the driver’s seat, displace the founders, and proceed to run a fantastic cash-cow of an Internet advertising business into the ground as a traditional expenses-sink-hole with big inefficiencies all the while trying to convince everyone to sell out at the earliest convenience rather than to simply run a profitable business over the long term and voila, that’s Digg.

VC’s want to build a business quickly to get bought. Period. It’s much easier to get bought than to go public and VC’s need an exit. So, they pour money into it, make it really big really fast with a huge growth curve of traffic and revenue so they can tout those big growth numbers, and then they prey that the business will get bought for a premium before the market changes or their growth curve starts sagging and making their business less attractive.

I think that’s idiotic. Businesses should add value and should cost less to run than they earn in revenues. Otherwise, it isn’t a business, it’s a charity or a money making get rich quick scheme.

By: haruyoshi

haruyoshi — Sat, 01 Nov 2008 17:30:48 +0000

Digg is good but seems difficult to earn,

By: serviced offices

serviced offices — Sun, 26 Oct 2008 00:10:36 +0000

Maybe a lot is spent on branding but it does not really seem necessary anymore, but it should be run like a company with a purpose.

By: WiredMike

WiredMike — Fri, 24 Oct 2008 15:44:42 +0000

Venture Capital funding is NOT “borrowing” money as you mentioned multiple times. It’s an investment for equity, not borrowing. Huge Difference. Borrowing is a loan which has specific terms for repayment.

By: Curshi Search Engine

Curshi Search Engine — Mon, 20 Oct 2008 02:40:02 +0000

Yes I agree with the post, run the business normally without expectations of being bought out

By: Webkinz

Webkinz — Wed, 15 Oct 2008 13:41:58 +0000

unbelievable that they are still not profitable. they definitely need to start cutting out some of the fluff in their company if they are still raising funds.

By: Webmaster Articles

Webmaster Articles — Mon, 13 Oct 2008 03:28:02 +0000

This is kind of like youtube because it sold for $1 billion dollars and is yet to make profit

By: Poptropica

Poptropica — Sun, 12 Oct 2008 18:42:16 +0000

I wonder what will happen with all these investments in current economic state..