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VALUE is the Key (Why Huffington Post went for $325m)

by JackTriggs
8 replies
Just wanted to share this with a few folks so that they can feel re-assured about doing it online. It's a ramble really, and I've just shooting from the gun...

Granted, having upsells to a product is nice financially

Having a launch is cool too

But if you ain't providing value that what is the point? Really...

If you can provide something of STUNNING value to a mass audience then you won't need to worry about anything else.

Sure a bit of marketing will be needed to get the word out, but think of all the valuable stuff out there online

Huffington Post sold for $325m or something...basically just providing good content with adsense

Facebook, Twitter, Youtube, Linkeld and other Social Media sites...these are worth astronomical sums because of their quality and service.

And no real ninja upsell,cross sell,trial offer,launch date etc tactics whatsoever

I personally think that's pretty awesome, and it's nice to know that if you're prepared, these millions there for the taking if you can conjure up some VERY worthwhile site...as opposed to thinking up (in an unethical way) upsells after upsells to squeeze more money out of customers

Do I need a straight-jacket?!!
#$325m #huffington #key #post
  • Profile picture of the author clint48
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    • Profile picture of the author JackTriggs
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  • Profile picture of the author Alexa Smith
    Banned
    Originally Posted by JackTriggs View Post

    If you can provide something of STUNNING value to mass audience then you won't need to worry about anything else.
    I think in the long run this is probably true.

    And was maybe true to Arianna Stassinopoulos-Huffington and/or her advisers.

    I'm not sure how many internet marketers it applies to, though. Many can't "wait it out" as she/they could.
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  • Profile picture of the author christopher jon
    Huffington Post sold for $325m or something...basically just providing good content with adsense
    That is a major understatement.

    The Huffington Post is a major news source along the lines of USA Today or The New York Times.

    Financial backing, political and mainstream media connections have more to do with the success of the Huffington Post than simply good content.
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    • Profile picture of the author Mike Hlatky
      Originally Posted by christopher jon View Post

      Financial backing, political and mainstream media connections have more to do with the success of the Huffington Post than simply good content.
      Oh yeah?

      "The Huffington Post, the ground-breaking online news and opinion site founded by Arianna Huffington on a shoestring budget, is to be bought for $315m by AOL in a move sure to stun new media sceptics and believers alike."
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      • Profile picture of the author Dave Rodman
        Banned
        Originally Posted by Mike Hlatky View Post

        Oh yeah?

        "The Huffington Post, the ground-breaking online news and opinion site founded by Arianna Huffington on a shoestring budget, is to be bought for $315m by AOL in a move sure to stun new media sceptics and believers alike."
        Huffington Post was not started on a Shoestring Budget. They got at least 5M from VC's in 2006.

        Huffington Post also was started at the right time (2005) when there weren't nearly as many news/political sites. Also at a time when the tide was turning for liberals.

        It was a perfect combination of execution and opportunity.
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        • Profile picture of the author Mike Hlatky
          Originally Posted by Dave Rodman View Post

          Huffington Post was not started on a Shoestring Budget. They got at least 5M from VC's in 2006.

          Huffington Post also was started at the right time (2005) when there weren't nearly as many news/political sites. Also at a time when the tide was turning for liberals.

          It was a perfect combination of execution and opportunity.
          It launched in May of 2005. The investment didn't occur until August of 2006.

          I'd say a year and a quarter is plenty of time between launching with a "shoestring budget" and getting a major investment.
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          • Profile picture of the author Dave Rodman
            Banned
            Originally Posted by Mike Hlatky View Post

            It launched in May of 2005. The investment didn't occur until August of 2006.

            I'd say a year and a quarter is plenty of time between launching with a "shoestring budget" and getting a major investment.
            It was founded by 3 millionaires and had Andrew Breitbart (who helped start Drudge Report) behind the scenes. There was nothing shoestring about it.

            You don't hire Andrew Breitbart, co-founder of a Top 500 website, with a Shoestring budget.
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          • Profile picture of the author Canuckystan
            Huffington was pretty huge before the Post. She ran for governor of California, was big in political circles and appeared on the Daily Show with Jon Stewart - all before starting her site.

            Her name drove a lot of eyeballs to the site.

            A better example might be Perez Hilton though I doubt he is worth $325m
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  • Profile picture of the author christopher jon
    Arianna Huffington on a shoestring budget
    Perhaps my idea of a shoestring budget and Arianna's aren't the same.

    This is a marketing forum, you should be able to spot well written copy and spin when you see it.

    And as the previous posters said, The Huffington Post wasn't started by some unknown mom in her kitchen. I'm sure the starting shoestring budget for that site was more than I or many other marketers make in a year.

    It also helps when you're owner and contributers are daily fixtures on the major cable news channels. You can find Arianna Huffington or somebody from the Huffington Post appearing almost daily on MSNBC or Fox.
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