Nothing for Something

Virtual goods is big business. How big? Habbo Hotel reports $77 million in revenue for virtual goods in 2006. That's $77 Million with an "M" for goods sold that don't actually exist.

Cash is not king

Eric Reis writes, "Cash on hand is just one important variable in a startup’s life, but it’s not necessarily the most important. What matters most is the number of iterations the company has left. While some cost-cutting measures reduce that number, others increase it. In lean times, it’s most important to focus on cutting costs in ways that speed you up, not slow you down. Otherwise, cutting costs just leads to going out of business a little slower.

The full formula works like this:

• runway = cash on hand / burn rate
• # iterations = runway / speed of each iteration

Check out the full article here: Cash is not king

Free! Why $0.00 Is the Future of Business

Google reported that its revenue for the fourth quarter period ending December 31, 2008, was $5.70 billion, yet charges nothing for many of it's products and services. Google succeeds because it creates value that attracts customers and makes money through the side door of advertising.

In this Wired Magazine article, Chris Anderson discusses why Free Is the Future of Business.