People have tried three different business models around social bookmarking:
Business Model #1: Charge Money
This is a groundbreaking new approach where a site accepts fungible tokens of value in return for a product or service.
Also
…while the business is healthy and profitable, no angel investor or venture capitalist would touch it with a long stick, as it sits on the wrong side of the risk/reward curve.
The combination of low startup costs and investor aversion means there are all kinds of opportunities lying around for a developer to run a profitable small business, provided he or she remembers to charge money.
When you’re costs are low, you’re a one-man band, you’re serving 20k users (all of whom paid to sign up), why would you bother with angel investment or VC? Your business model is quite straightforward actually, provide a reliable service that people are prepared to pay for.
Via Marco
