Sitepoint 7 million in reveue, 99designs at $1million arealdy!

[Snowballer]

Wow, I was reading http://www.smartcompany.com.au/Premium-Articles/EntrepreneurOnline/20080422-Sitepoint-Ideas-exchange-business.html
and was shocked to read sitepoint does 7 million in revenue and 99designs is already doing 1million.

I would guess 99designs has a higher net profit ratio since it is 100% service based (as oppose to selling physical books, which I'm assuming is a large % of the 7 million).

[Chris]

I wonder if they consider 99 part of SP?

How they stumbled onto the profitability of the contest system reminds me of how I Stumbled onto coupons.

[Snowballer]

What do you mean Chris?

They have a strong designer base, so 99 made so much sense and it was a no-brainer for them to leverage the members.

[Chris]

It wasn't an original idea they thought up out of the blue.

Website publishers first had the idea to run a contest. Others saw it and ran similar ones. It was somewhat of a coincidence it started at SitePoint, and they had nothing to do with it starting, and when it did start, no one, including them, had any idea it could be monetized and provide so much revenue. Which is why it took them so long to monetize it. Hence, they stumbled onto it.

[Snowballer]

ahhh I see. Interesting.