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A comment on Digg's Miserable Business Model, Losing Millions of Dollars.

Re:Digg's Miserable Business Model, Losing Millions of Dollars by graemep on Saturday December 20, 2008 @03:23AM (#404408)
On those numbers Digg has revenues of approx 3 US cents per unique visitor. Not too bad, surely? How much could they charge for advertising?

It costs Digg about 5 cents per visitor. Where is that going? Seems excessive for bandwith + servers. The content is user generated, I cannot believe that they are spending much of that $14m on development or administration.

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Re:Digg's Miserable Business Model, Losing Millions of Dollars by jonknee on Saturday December 20, 2008 @11:22AM (#404600)
Where's it going? The 80 person staff is a good place to start.

http://digg.com/about/

There's no reason the site couldn't be run by five people.

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Re:Digg's Miserable Business Model, Losing Millions of Dollars by mattmaroon on Saturday December 20, 2008 @03:31AM (#404418)
It REALLY depends on page views. Unique visitors has nothing to do with revenue. 3 cents per visitor is very low if they have high pageviews per, which I'm guessing they do.
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Re:Digg's Miserable Business Model, Losing Millions of Dollars by graemep on Saturday December 20, 2008 @05:14AM (#404461)
Yes, I was thinking unique visits, rather than visitors - my mistake. They probably have a lot of people who visit daily, so the number of visits is easily hundreds of millions, page views could be billions.
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Re:Digg's Miserable Business Model, Losing Millions of Dollars by tphyahoo on Saturday December 20, 2008 @07:32AM (#404509)
3c per visit sounds excessively high. How often do you click on advertisement?
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Re:Digg's Miserable Business Model, Losing Millions of Dollars by mattmaroon on Saturday December 20, 2008 @03:11PM (#404773)
It's 3c per visitor. If it were per visit, they'd be rich.
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