33 Startups That Died Reveal Why They Failed
 

Stick to the adult stuff ;)

http://img198.imageshack.us/img198/4803/yzh6.jpg


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There are so many failed adult sites (especially cams), just most it was less expensive to setup than those mainstream ones.

From that article the most important things I see are these 2:

"The business decision to focus on technology and avoid building a consumer application had a significant impact [on the eventual failure]."
(Let me add: whatever "technology" or software or site you produce, it can be copied and re-coded in matter of weeks, no matter what... take as example myfreecams or streamate (or facebook, skype), you can clone their software, their value it is the users who are "used" to them).

"They gave away a service for free, and ran out of cash to pay the bills"
(Let me add: this would be true for youtube, facebook, skype etc. too, if they was not acquired and funded by banks and big corporations. The free it should be an excuse to sell something - even if just advertising - and it should pay back costs, from very early, not "in a future".).

Yes indeed there is still plenty of websites which gives their service for free still and they received venture funding in several millions which is why they are still operational.So basically key to success is to find a sucker who will finance you :1orglaugh

for the most part that makes up most business's. Some call them investors and some call them customers:2 cents:

Before of adult so in 1996-2002 I used to work with/for those venture funded companies, who basically all had the same investors, and was customers of each other. So for example the Telecom X whose shareholder is Fund Y, will carefully choice (from a large list of providers), the service of startup company Z (always in Usa and/or Israel) whose venture capital comes from Fund Y. Eventually startup will have no any other customers, except other companies also owned by Fund Y. Finally Telecom X will buy company Z, retuning the money to Fund Y (who is also who paid - to themselves). Note never there was a real customer, which is, someone not involved with Fund Y, in the whole process. However those startups needed someone to write code, so here is where the outsourcing company (me) was getting paid for something practical. At some point they stopped to flow that big money so I switched to adult, where it was real (final, random) customers to pay.

Back to copying and pasting again? See you found another site this time. Idiot.