- What are the pros and cons of an advertising revenue model for your product, and the internet overall?
Our product is EliteExec Ventures which is a Venture Capital service for growth-stage startups with in-house executive acquisition services. Having an advertising revenue model would be a more short-term cash flow option that counterbalances the long-term equity revenue model. However, similar to how Ford cared about their brand when advertising on Tripod websites, EliteExec Search already has a well-respected brand. Thus, a con of an advertising revenue model would be that it matters what we advertise and that advertising may negatively hurt our brand image.
A pro of advertising on the internet is that it allows online businesses to make revenue through their foot traffic. Web services are expensive and any positive cash flow helps businesses pay their dues. On the other hand, the internet was created for the free sharing of knowledge. Monetizing users who are using the internet goes against that mission and is thus a con. Additionally, as advertising has become more advanced, user actions are being tracked are exploited to improve advertising. This action has negative externalities as now user data is being sold to not just advertising companies but also governments and for exploitative practices.
