If an advertiser is willing to pay you $x then you can be guaranteed they're earning $x * 2 -- or more. If you had the product instead, and were the advertiser, you could be the one making a lot more money.
Advertising expenditure is always a sliver of total expected revenue, except in two rare cases: when a company bets the farm on an ad campaign, and when the advertiser is a startup running on VC.
Therefore, the amount of money the ad generates will almost always be more than it costs. That is indisputable.
Ergo, making products is a better way to capture more money.
You can realistically make a handful of products. You can advertise millions.
Would you rather sell 1 product, or advertise a million different products?
Your logic seems to miss that crucial point.
Look at it this way. Paid subscription = Manufacturing. Advertising income = Retailing.
Would you say there's also no money in retailing? (Which is really just a form of advertising supported).
My argument is that there's plenty of money in both if you know what you're doing. Which you chose is likely a matter of personal preference, and how much risk you like taking.
Comments
Well, take your numbers, and reverse them for me /shrug/
That doesn't invalidate my metaphor.
If an advertiser is willing to pay you $x then you can be guaranteed they're earning $x * 2 -- or more. If you had the product instead, and were the advertiser, you could be the one making a lot more money.
Advertising expenditure is always a sliver of total expected revenue, except in two rare cases: when a company bets the farm on an ad campaign, and when the advertiser is a startup running on VC.
Therefore, the amount of money the ad generates will almost always be more than it costs. That is indisputable.
Ergo, making products is a better way to capture more money.
You can realistically make a handful of products. You can advertise millions.
Would you rather sell 1 product, or advertise a million different products?
Your logic seems to miss that crucial point.
Look at it this way. Paid subscription = Manufacturing. Advertising income = Retailing.
Would you say there's also no money in retailing? (Which is really just a form of advertising supported).
My argument is that there's plenty of money in both if you know what you're doing. Which you chose is likely a matter of personal preference, and how much risk you like taking.