Web2.0 startups earn assets, but not ...

Single handed startup stories like PlentyofFish and HotorNot inspired me the most to develop webapps. Only after launch that I realized its not easy to become overnight millionaires.

Creating an Amateur Web 2.0 startup has become a hobby or a pass-time activity for many techies (software developers). They are cheap to build, relatively easy to market, and just requires a person or two to manage it. Should you take this path? YES and NO!

For people who make webapps with the only intention of earning money, the chance of making it BIG is too feeble, and may not be worthy of the hardwork. Check out the article 'Warning: Software Startups are Not as Easy as Everyone Says'

On the other hand, there are people like me who make webapps in spare time NOT for the money… but to express our passion & pride in owning a startup, and gain experience in the process. There is sure only a 2% chance to become a super-hit, but its worth exploring.

Yes... Web 2.0 is a great way to startup a venture if the purpose is to have fun, or express the passion to build something new, or prove creative & technical abilities. As a result, we can get a taste of entrepreneurship, and is a good first step for an amateur. Now, lets talk about funded startups...

Observing many Web 2.0 funded startups, I really wonder what their business strategy is. Most of them offer services for free, and just rely on an unstable advertising model. The only exit strategy is being bought by a Bigshot company. Can anyone guess or assert what their Plan-B is? Each startup only aims to earn assets in the form of userbase, traffic, etc... But, how will it recover the invested $$ and make a decent profit on the venture?