Revenue Models

I just read a very interesting post by Fred Wilson on the extreme loss of jobs this economy has seen recently. Then I came across this post by Greg Sterling (smart guy, loves local). But the response to one of his questions really pissed me off. Its somethings thats been hurting the micro-world of start-ups more and more. Its contributing to the erosion of creative capital.

Is there a revenue model?

Revenue models will exist, but they’re a low priority at the moment.

Now I realize there are alot of companies that have been founded and been successful with the idea that first we need to make a great product that everyone will love, then we’ll make money. I don’t mean to pick on the particular company being mentioned, the tone just bothered me. But I get frustrated that many (I would guess 85% of the start-ups on TechCrunch) start-ups that are highlighted in media and receiving great press all over the blogosphere, don’t even have a plan for a revenue model. Not even a plan.

Everything in life can’t be free. Its just not possible. Users expect everything to be free these days, but its the same problem that built so many consumers into such scary debt. “Let someone else pay for it/ I’ll worry about it later.”

Fred’s post was about job creation, not just through starting new companies, but through creative thought in existing companies (maybe specifically how to look for a job in those companies). But down in the comments it gets fleshed out that people need to create viable businesses that enable commerce or build sustainable businesses with customers in order to create jobs.

What bothers me about the whole situation here is that stupid blogs out there are so lazy that they just report whatever it is that comes into their inbox. Stupid companies that add a fancy little widget to shorten my Twitter posts are great. Thanks, but how many jobs is that going to create? Twitter is awesome, its like the invention of the key-pad phone over the rotary, its a platform for communication and it serves a great purpose. I have no doubt they will figure out a way to make money (or someone will whose doing the same thing). But can people please stop fussing about random little companies that admittedly don’t have a plan to make money, don’t do anything special or different, and generally don’t do anything?

Point here is there are alot of companies that are hiring. They are growing, they are adding value to their communities and they are creating jobs! They maybe only 3 jobs, maybe they are 8 jobs. But there are hundreds of companies out there hiring, and all we get to hear about is impending doom and the latest free iPhone app that shows girls in bikinis dancing.

I wonder what these guys think about? Consultants and professional bloggers… probably going to hire one soon tho