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Margins, Not Margarine

Margins, Not Margarine

“But we weren’t profitable at all. In fact we felt like we were burning cash as fast as we could just to handle the growth – it’s expensive to give users a fast experience with lots of features, pictures, video. We needed more computer storage and power and stuff. We knew at some point we’d be profitable – roughly speaking, we thought we’d have two ads on a page which would sell for a fraction of a cent each. In the normal media business, inventory is sold on a ‘CPM’ or cost per thousand basi...

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