Archive for November 21st, 2006
Zafu.com – Buy the perfect Jeans
Since Zafu.com made its debut in August, Mr. Holloway said, the site’s traffic has grown rapidly, to more than 100,000 visitors this month, with virtually no marketing. The company makes money by earning a commission of 5 percent to 15 percent on every pair of jeans sold on the hundreds of retail sites with which it has agreements.
http://www.nytimes.com/2006/11/20/technology/20ecom.html?ref=technology
Add comment November 21, 2006
In the web world rich people now envy richer people
But when greater fortunes are made — as happened recently to three former PayPal colleagues when YouTube was sold to Google for $1.65 billion — Mr. Hoffman said he could not avoid a twinge of envy.
“It’s kind of embarrassing,” said Mr. Hoffman, 39, whose start-up, a business-oriented social-networking site called LinkedIn, is almost four years old. “You started a year or two earlier, and they start after you and then this thing zips right past you and gets the golden results.”
http://www.nytimes.com/2006/11/21/technology/21envy.html?_r=1&oref=slogin
Add comment November 21, 2006
HOTorNOT.com $5million a Year -> Case Study
When HOTorNOT first swept onto the scene a few years ago, not many people thought it would amount to anything more than a short-term fad. Even today, not many people recognize that HOTorNOT has a very profitable casual dating service consisting of 500,000 – 600,000 active users. HOTorNOT is making somewhere between $5M – $10M per year in revenue with very little cost since they don’t spend any money on marketing.
One month after James and Jim launched HOTorNOT they had an acquisition offer to be bought for $3-5M. Not a bad result for a couple months of work. However, they rejected the offer for several reasons. For one, they thought they could launch the premium dating service and make more money that way. Since the dating service had yet to be launched, this was a big gamble. Luckily, it paid off and Jim and James have been paid the $5M several times over. They were also fearful that the acquirer would not run the service the way they intended – as a community.
Read Full Article http://www.startup-review.com/blog/hotornotcom-case-study-mixing-free-and-premium-services.php
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