Why are companies like digg / yelp not profitable?
Posted by admin on 26 Apr 2010 1:37 pm. Filed under Small Business.
intrudah
I know their employees get paid and their generating revenue. But why are they not having positive revenue streams. Is it because of venture capital, reinvestments in the company, or high server costs?
I know their employees get paid and their generating revenue. But why are they not having positive revenue streams. Is it because of venture capital, reinvestments in the company, or high server costs?
One Comment to “Why are companies like digg / yelp not profitable?”
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On April 29th, 2010 at 11:23 pm
How are they generating revenue? By ads. The cost of servers, bandwidth, employees, etc is greater than the income generated by the ads.
It is as simple as that.