jordan willms on business, entrepreneurship, technology and the web

Unless you have been living under a very large rock, you are well aware of the financial turmoil that is ripping through financial markets and the housing sector in the US. It has been causing outrageous commodity prices, higher than normal market volatility, and a general 'bearish' attitude towards the worldwide economy.

So then, what are the effects of these jitters on the investment environment for investors that invest in web 2.0 related ventures?

For starters, many argue that the Tech IPO Window has Slammed Shut. That being said, I think entreprenuers are going to have to face some realities.

There is a good thread on LinkedIn about this, readable here:

http://www.linkedin.com/answers/financial-markets/equity-markets/MKT_EQU...

Typically, selling a small web 2.0 startup involved using eBay and alot of promotion (And hopeful coverage by techcrunch and mashable). However, there are a few other options to consider before you go the 7-day auction route.

This is a great news for entrepreneurs, who are finding it easier than ever to sell off failed startups. Many, get enough money to get back their original investment (Which in the web 2.0 world, is typically small).

1. web2.0forsale.com
   This new website, launched by TechCrunch regular Steve Poland, is the place to buy and sell web 2.0 websites.

   Web 2.0 will likely welcome this new site with open arms, since other marketplaces do not target this niche directly.

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Tim O'Reilly recently posted an article about the Economics of Online Advertising. Immediately, he cites a Mark Jacobsen article which discusses Three ways to build an online media business to $50m in revenue. Do you really need that much?

Here is the math:

* At the $1 RPM (CPM/CPA/CPC) level achieved by most general sites, you need 4 billion page views/month.
* At the $5 RPM level achieved by demographically targeted sites, you need 800 million/month.
* At the $20 RPM level achieved by highly targeted sites, you need 200 million/month.

Most sites can hope to roll in within the $1 through $5 range. So these are scary figures to get to $50m. (Although, revenue isn't that important. I could get $50m revenue easily enough by selling dollars for 99 cents).

ProjectOpus.com, a DRM-free online music community, recently released a screencast (watch below) detailing the launch of their new "Music Importing Tool". These new features mark a strategic change for the company: Site members can now organize their music collections and create playlists that include both the music of ProjectOpus artists, and any music found on the web. They can also tag, organize their song collections, which can then be shared via player widgets that can be embedded into MySpace/Facebook/Bebo/Hi5/Friendster or their blog.

FreshBooks is an online invoicing and time tracking service that promises to save you time and make you look professional (Aparently being perceived as a Fortune 500 company is attractive to SMEs). Today, FreshBooks announced integration with 37signal's Basecamp product.

For those of you who need a 101 on FreshBooks - Check the features it promises:

• Easily create, send and manage invoices
• Track time (for you and your staff) Totally Redesigned
• Send invoices by US post or email
• Accept payment with PayPal, Authorize.Net, & more
• Automatically send invoices & late payment notices
• Create robust reports and import/export your data
• Peep this screencast if your too lazy to demo the product.