Call me old-fashion but I wholeheartedly agree with Plan B, Plan B focuses on being cashflow positive first before ramping up the growth strategy while Plan A focuses on getting big fast before figuring out how to get to cashflow positive
And that brings me to the point made by Mark Cuban about how the current batch of entrepreneurs are being cheated by the likes of Netscape into believing that you should follow an eyeballs-then-cash strategy, instead of the common-sense cash-over-eyeballs strategy (or what Mark would say Cash-in-the-pocket strategy).
Fame/popularity on the Internet is ephemeral (Geocities? Youtube celebs?) and you jolly well make sure you are bringing in cash fast. Sony wouldn't have bought ClubPenguins for so much if they weren't bringing in USD 80 million in revenue every year. If ClubPenguins had twice the eyeballs but one-tenth of the revenue, the buyout price would be way lower.
That is not to say that the eyeballs-then-cash strategy wouldn't work but it is statistically insignificant when compared to the larger population.
And that brings me to the point made by Mark Cuban about how the current batch of entrepreneurs are being cheated by the likes of Netscape into believing that you should follow an eyeballs-then-cash strategy, instead of the common-sense cash-over-eyeballs strategy (or what Mark would say Cash-in-the-pocket strategy).
Fame/popularity on the Internet is ephemeral (Geocities? Youtube celebs?) and you jolly well make sure you are bringing in cash fast. Sony wouldn't have bought ClubPenguins for so much if they weren't bringing in USD 80 million in revenue every year. If ClubPenguins had twice the eyeballs but one-tenth of the revenue, the buyout price would be way lower.
That is not to say that the eyeballs-then-cash strategy wouldn't work but it is statistically insignificant when compared to the larger population.