Re:Christian Owens (16yo who made 1mm in revenue) live on Mi...
by dillydally on Friday August 13, 2010 @06:08PM
(#1602438)
50% is large for a web-based ad network. Unless they're highly verticalized or doing direct sales (and therefore have less competition), 20-30% is more reasonable.
AdMob (Branchr also does iPhone ads), for example, has a default 60/40 split in favor of publishers. That's the ceiling -- it will be lower for people they want to keep as clients (i.e., clients with leverage). They're also the #1 mobile ad network, so smaller networks will have to be more publisher friendly than they are.
For my FB properties, I have most of the ad networks I work with negotiated down to the 10-15% range.
~700K pounds with the mac bundle...but 60% of that went to the developers whose stuff he bundled, and another 10% went to ads. + I'm sure there other costs like servers etc.
with the current one it's ~500K pounds in ad sales...so figure they make 50% as revenue, then you subtract the salary for 8 employees + all the servers to serve the ads and it goes down quite a bit.
but never the less, still impressive.