This is Bugging Me

[Dysan]

Hi Guys,

Something that has been bugging me for ages, is how do websites that offer a service for a fee, start-up?

If we take um.... a job website for example (JobServe.com), who allow recruiters to post jobs for a small fee onto there website, how do these sites start, as if there is nobody else to view the jobs, then the recruiter is spending money for nothing in return.

What happens when a website starts-up? eBay is another example.

I hope this makes sense!
Very interested to hear anybodies views.

[WebJoel]

Investers, I would imagine. Someone has cash to invest, seeks (or is sought after by~) someone with a dream and some mad-skills. I don't know how many times on sites like craigslist I see ads for 'I want to build so-and-so, don't have money so you are working for-free and when we start to make money, will cut you in for $, ' etc..'. Most of those are (imho) garbage, someone re-inventing eBAY or whatever, thinking that their strategy will somehow win the hearts & minds of users. But like many start-ups, it does take some cash.

The story of one Steve Jobs and a fella nicknamed 'Cap'n Crunch' makes an intersting read... they got their start-up money on the shady side of the laws...

[Lightlord]

Like webjoel said :)

Another method is that you are already in the industry. Have the cash, the products, the customer base and you are using the web as an alternate medium to offer your products.


Alot of retailers have physical locations, catalogs and web was just a natural evolution.

Personnal service like recruiters. There are alot of recruiting job firms, so they offer a jobsite, they already have the resumes on hand. Or someone comes in with investment dollars and buys their resumes or the small firm(s) as a foundations.

Web Startups that are not based on a existing infrastructure, take raw investment dollars. Or you can also approach a company thats already in the industry that doesnt have a web presence and work out a deal to start one. This will be more likely have to be a small company, and this may make it a little easier to get investment dollars.

The larger companies will probably not need an outsiders help, when they can hire their own folks.

If your like net flix, you build your whole infrastructure on start up cash.



It Just takes lots of money and you hope you do well before the money runs out.


LL

[donatello]

Hi Guys,

Something that has been bugging me for ages, is how do websites that offer a service for a fee, start-up?

If we take um.... a job website for example (JobServe.com), who allow recruiters to post jobs for a small fee onto there website, how do these sites start, as if there is nobody else to view the jobs, then the recruiter is spending money for nothing in return.

What happens when a website starts-up? eBay is another example.

I hope this makes sense!
Very interested to hear anybodies views.

With regard to jobsites, they plan to offer their service for free to build up a database over time. Then at some point they begin charging for it.

For years, we used to check DevBistro for programmers to hire... it used to be free. Now they charge. The same thing with NerdsWanted.

Some others start up as a mini-site where they monetize the traffic using a combination of methods:

Google Adsense
Yahoo
Affiliates (Commision Junction, Clickbank, TradeDoubler, etc.)
LinkWorth
Konterra contextual ads
etc.