GenuineVC David Beisel's Perspective on Digital Change

January 12, 2006

Greg Yardley makes the prediction in his post “2006: watch your mouth and the bottom line” that in the upcoming year many currently zero-revenue startups will devote “an increased emphasis on revenue generation, and the placement of advertising everywhere advertisers are willing to test.” I completely agree that the current climate (in the consumer internet space) of sole devotion to product creation instead of business generation isn’t sustainable long-term. Of course, a natural progression of any startup begins with the product with the distribution and revenue following – so what Greg is saying isn’t revolutionary (nor overly critical), perhaps just merely sobering.

What I think is interesting, however, are the ramifications of this statement. In the next six to eighteen months, there are going to be a significant number of startups searching for revenue sources, which is going lead many of them down some very creative paths to find it. And that’s what’s exciting. Of course, “traditional” advertising networks (AdSense included) will provide the bulk of dollars. But advertisers are increasingly searching for alternative and imaginative ways to reach audiences, and emerging startups possess the flexibility and responsiveness to experiment with new notions of how to reach consumers. As I’ve written previously, social commerce is one substitute, but that’s just a mild deviation from the norm. I’ve seen a number of not-yet-launched ideas cross my desk in the past couple months that start to push the boundaries farther, and I’m looking forward to see ones which are even more innovative. We’re currently seeing an explosion of creativity in the web services themselves; I am eagerly anticipating/hoping for a similar originality on the revenue-generation front as well.

  • http://plugstar.com Andrew

    We should seriously talk.

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  • I am a cofounder and Partner at NextView Ventures, a dedicated seed-stage venture capital firm making investments in internet-enabled startups. Read More »

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  • robgo
     - 19 hours ago
    @aaronwhite @nickducoff yes, just post. My best performing posts (bar one) were all written in 20 minutes or less with no editing
  • Lee Hower
     - 22 hours ago
    dunno why but we VCs always seem to be suckers for logo wear - sporting my @insightsquared fleece today http://t.co/ZRcNmHT6O5
  • David Beisel
     - 1 day ago
    Terminator vision coming soon "Google Invents Micro Camera System for Future Contact Lenses" http://t.co/ex9QX56aCF http://t.co/vuF7FETF7Y
  • robgo
     - 1 day ago
    RT @mikesalguero: We're on the lookout for a Director of Marketing. http://t.co/4byAym4gCk

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