WEB How do big start ups launch websites?

Discussion in 'OT Technology' started by Tony Stark, Oct 16, 2007.

  1. Tony Stark

    Tony Stark John McCain has an illegitimate mexican baby

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    How do the big boys do it? Do they spend 5 mil on adsense? Or what? I'm talking about VC backed websites.
     
  2. RaginBajin

    RaginBajin Have you punched a donkey today?

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    I've actually worked for two start-ups. One that started out pretty small, went huge and fell apart, and now another one that is pretty large and growing.

    We spent some money on adsense, but really never that much. We eventually got to spending la million a month TOTAL on all advertising (direct mail, adwords, banner ads, etc).

    The way it started out for us was by word of mouth. If you are VC backed, a lot of times,those guys will tell some of their big time friends who know friends at news sites or something like that, and you'll get kicked started that way. But depending on what you are trying to start, a lot of it is just by telling people and getting others to tell people.
     
  3. Nakon

    Nakon Guest

    launch balloons with your URL on a piece of paper inside them. :hsugh:
     
  4. MrBrotato

    MrBrotato New Member

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    :noes:
     
  5. Frequency

    Frequency New Member

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    How does 1 get the paper inside the balloon?
     
  6. Tony Stark

    Tony Stark John McCain has an illegitimate mexican baby

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    well ok how did Google launch? What about ebay? What about amazon? Do you really need the millions in VC funding to gain any traction? or Can you just stick to word of mouth/buying a sticky on OT?
     
  7. autox

    autox OT Supporter

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    totally depends on the industry. Some sites really need to get big fast to survive, while others can survive by being small and not spending a lot of money
     
  8. Ebtek

    Ebtek Afraid of 138

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    :rofl::rofl::rofl:

    extra funny because i only ever expect serious replies in here
     
  9. Ebtek

    Ebtek Afraid of 138

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    christ. what will a mil/month get you from google? your site at the top of every page of 1000 different keyword searches?
     
  10. RaginBajin

    RaginBajin Have you punched a donkey today?

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    We didn't spend a million at google. That was spread out across all advertising avenues such as direct mail, banners, google of course, tv ads, yahoo, msn, etc, etc. It was actually a bit less, something around 750k-800k. When you are talking about being the Top of every search list, every keyword, and being the prominent banner ad, and things like that, online is pretty pricey. Now when you start talking Direct mail with a 2-3% return, you know you have to hit extremely large areas to make a ROI which cost you a pretty penny.
     
  11. ez4me2c3d

    ez4me2c3d Cold Member

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    what is VC?
     
  12. Nakon

    Nakon Guest

    venture capital. basically free money
     
  13. Tony Stark

    Tony Stark John McCain has an illegitimate mexican baby

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    nah its more like indentured service. Yes technically you are free...but you are that VC's bitch
     
  14. RaginBajin

    RaginBajin Have you punched a donkey today?

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    Right.. They usually get on the board of directors and/or place an employee in some high level position within the company.
     
  15. Tony Stark

    Tony Stark John McCain has an illegitimate mexican baby

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    The problem I see with venture capital is that they make you run too big. When you have 2 mil in the bank, you piss that cash away on a big ass office, and a bunch of employees. And those things don't really add that much to comapny's value.

    If you are bootsrapping, every penny counts, and you can make right financial decisions.

    + you got a big business guy telling you how to run your business. i.e. my friend was a VP at a large start up, and their whole business tanked because of dumb decisions forced through the board by the VC guys.
     
  16. RaginBajin

    RaginBajin Have you punched a donkey today?

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    I definitely agree. When you get tons of cash in the bank and have been through several rounds of funding, you start getting a big head like the money will continue on coming. We went through over 100 million dollars worth of VC money. There's lots of reasons when it went down the tubes, but spending too much money because you can is the real reason.
     
  17. Tony Stark

    Tony Stark John McCain has an illegitimate mexican baby

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    + the success really gets jacked the fuck up when you take VC cash.

    Example 1:

    You are a start up, you have 2 employees, and you rake in 200K in a year. After you subtract 40K a piece for employees, you are left with 120K for you.

    Example 2:

    You are a start up, you take money, you hire 40 employees(at 40K a piece thats 1.6 mil), you get a big ass office for those 40 people, that runs you 33K a year) ..this means that just to break even you need to get at least 2 mil in profit.
     

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