Very well done, this is a good read and a realistic look at the Internet economy.

Great article. I still could use a good coffee mug.

One thing that was not mentioned was selling users email addresses to spamers. I in no way advocate it. In fact I think it should be illegal. I was just wondering how much a website can make by selling their users list?

Another point of interest:

Take WinCustomize as an example. The primary objective for WinCustomize is to provide a central repository for skins and to support the skinning community via news, message board and the libraries. Making money through Wincustomize really was not in the original plans. But once it was decided that we needed WinCustomize to bring in revenue we had to redirect some of our resources to achieve this. Now some of the resources devoted to WinCustomize is now split between providing the content and by trying to bring in revenue. But all to often we do not follow through well enough on our revenue making goals. We tend to sit back and think that the site will just maintain itself.

I guess what I am getting at is that once you decide on a business model you need to follow through with it. It needs constant attention. Looking back at our T-Shirt and Hat sales, even though the sales were not strong, they could have been much better if we had better follow through. Its too easy to just throw a product out there and expect it to sell itself.

For websites that are created with a business model in mind this is probably not as much of a concern for websites that are original created as a hobby.

If I could get my spam on a coffee mug.....

you are great!