Cycling Tips found that attracting luxury advertisers like car brands was incredibly unreliable. Revenue often depended on a single executive's personal passion for the sport; when that person changed jobs, the ad budget disappeared overnight, making it an undependable growth strategy.
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Before programmatic advertising, BroBible found a ceiling on direct ad sales. They built a highly profitable events business, hosting concerts and selling high-value sponsorships to major brands. This became their number one revenue source for two years, demonstrating a creative monetization strategy beyond simple ad inventory.
To remain sustainable, the local media outlet combines direct ad sales, branded content, merchandise (coupon passports), and a Patreon membership. This multi-pronged approach provides stability and avoids over-reliance on a single, often volatile, revenue stream like programmatic advertising.
Scott Galloway's Prof G Media, a $20M business, rejects entire ad categories like crypto and gaming. He believes they prey on young men, and accepting their money would undermine audience trust. This strict vetting process results in a small, curated list of just 38 advertisers, prioritizing brand integrity over revenue.
As businesses scale, they often abandon the scrappy, creative tactics that sparked their initial growth. To combat rising ad costs and channel fatigue, intentionally revisit these early, 'unscalable' activities. Re-injecting that fun, different energy can generate the 'free memories' and reach needed for the next growth phase.
Outside's acquisition of 20+ publications failed because it used a "broad brushed" approach. It ignored the unique cultures, business models, and reader relationships of each title, leading to internal chaos and the founder's departure from his own company, Cycling Tips.
Relying solely on short-term performance marketing becomes unsustainable. Brand investment acts as the fuel for these channels; cutting it means you must spend progressively more just to maintain the same results, leading to a negative spiral.
When a tool gets massive attention but users aren't willing to pay (like Trust MRR), pivot the business model to advertising. Create scarcity by offering a limited number of ad slots and rewarding early advertisers with lower prices. This builds FOMO and generates more reliable revenue.
The industry glorifies aggressive revenue growth, but scaling an unprofitable model is a trap. If a business isn't profitable at $1 million, it will only amplify its losses at $5 million. Sustainable growth requires a strong financial foundation and a focus on the bottom line, not just the top.
Chasing trends like crypto or cannabis without deep knowledge or passion is a recipe for failure. Success in online monetization comes from leveraging genuine interest and expertise, not from following hype cycles. This authentic foundation is what builds a sustainable audience and income.
