Their FAQ says this:
It's Free
Yes, we're free. There are no hidden fees for storage or bandwidth, and no forced advertisements on your Posterous Spaces. We never collect your credit card information or ask for any trial periods.
In short - there are no hidden costs, no strings attached, and no reason not to start posting today!
So how do they make money? They have been around for a long time, and they are still hiring.
Is there something genius happening behind the scenes that allows them to continue growing off of cash flows? They don't seem to be constantly raising money, although they did raise $10.1M over 4 rounds, but could their burn be so low that they can do that every time they run out of money?
The reason I am asking is because they host both my personal and company blog. I am concerned they might just lock-up shop one day, because they run out of money, or they are selling my info someway because there is no such thing as a free lunch.
So where are they getting their lunch money, aside from investors? What am I missing?
>Later this year Posterous will launch a pro version of the service for bigger brands, and allow things like Javascript and site monetization for a fee, they say.
http://www.techcrunch.com/2010/01/18/posterous-revenue-coca-...
And from http://kahlil.posterous.com/how-posterous-makes-money in January 2010
>So I asked Posterous co-founder Sachin Agarwal how Posterous will actually make money. His answer was simple. Charge for business and commercial use of Posterous. What about consumers? Agarwal says that Posterous will remain free for consumers, but will just charge for businesses, which reminds me a lot of how people imagine Twitter making money.
Their business model could easily have changed from this by now though.