Re:On the web server scalability and speed are almost the sa...
by davidu on Friday April 01, 2011 @04:49PM
(#2397996)
"You're actually on to my point which is to stop doing low margin activities and focus on high margin activities."
That's something I would certainly endorse. I didn't get that out of your post, I completely agree. Engineers who start companies often overlook this fact and focus on the entirely wrong set of problems when building their business.
If your margin on a page request is 5% your business is probably fucked anyway (unless your serving billions of pageviews per month, there are only a few sites that work on this business model). I'd much rather have a business with orders of magnitude fewer requests and a profit margin on the order of 10s of thousands per page request.
What do you think 37Signals margin on a page request for basecamp is? My guess is at least 10,000%.