Massive Arbitrage Company

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All Advertising is arbitrage in one way or another. You spend some money and hope to get more from that buy.
 
Great story, and some good lessons:

1. Never build a business completely dependent on someone else's business

2. Always put some of those golden eggs away for a rainy day
 
Affiliate marketing is *somewhat* dependant on the merchants. I think we all should stop doing this! :D

snavr said:
Great story, and some good lessons:

1. Never build a business completely dependent on someone else's business

2. Always put some of those golden eggs away for a rainy day
Click to expand...
 
Yeah, but we're talking one traffic supplier and one ad server in this case (just to be crystal) ... not something that most affiliate marketers do.

Wicked Ice said:
Affiliate marketing is *somewhat* dependant on the merchants. I think we all should stop doing this! :D
Click to expand...
 
That's the price to pay for not caring about the users of your site(s). If you give them value, things will tend to work out okay; i.e.: Good QS and low min bids.
 
"As for Nye? He came away from the breakup with what one former executive describes as "assets with little value" - a few domain names, such as hockey.com and golfcourses.com, a few staff and little else."

:1orglaugh::1orglaugh::1orglaugh:
 
Hockey.com and GolfCourses.com? I'd love to own those "assets of little value" :D

Just shows how little the "real" world knows about online business.
 
The problem with the story is it sounds like a tragedy - that is a big time success. To grow a company to $100 mil+ on PPC arbitrage is amazing. Of course it is going to get wiped out eventually -- he knew it and probably sucked out a ton of money and tried to shift with another $160 million in VC money.

The guy did everything right, especially if he walked away from the VC with some great domains and a big bank account.

Name 10 companies or people that did better than him.

Great article, great run- I bet he does it again
 
That is one interesting article, specially if you see how "clueless" some of the bottom-feeder employee's were regarding the real income source.

Anybody that considers this a failure, should look a again, for the VC's perhaps, for the founder? no fucking way!
 
SEO_Mike said:
Hockey.com and GolfCourses.com? I'd love to own those "assets of little value" :D

Just shows how little the "real" world knows about online business.
Click to expand...

Hey Mike, I think the guy means "little value" compared to what his company was worth at the time. Whats $5 million in domains to a guy who was doing 10-20 million a month in arbitrage.
 
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