Really interesting. We were having a discussion in #startups a while back about which is higher risk - advertising revenue, or selling to customers.
This sort of thing makes me a bit uneasy - will the company pay $5, or $500k, will anyone else pay that? It seems slightly more like a lottery to me than advertising revenue. With advertising revenue you have maybe a few thousand advertisers all deciding the correct price to pay. If you're selling to customers you don't have that...
Obviously the two aren't exclusive, and it completely depends what sort of product you're aiming to create, but I'm personally glad I'm not selling to enterprises - I'm not good enough of a salesperson :/
This sort of thing makes me a bit uneasy - will the company pay $5, or $500k, will anyone else pay that? It seems slightly more like a lottery to me than advertising revenue. With advertising revenue you have maybe a few thousand advertisers all deciding the correct price to pay. If you're selling to customers you don't have that...
Obviously the two aren't exclusive, and it completely depends what sort of product you're aiming to create, but I'm personally glad I'm not selling to enterprises - I'm not good enough of a salesperson :/