Joe Essenfeld is the founder of social recruiting startup, Jibe. His business and revenue models are clear. Jibe makes money by posting job listings for companies; it charges them $5-$10 for every application received.
Jibe launched last September and is on track to make $1MM in revenue in 2011.
Essenfeld’s response was surprising. A model with instant cash flow, he says, can actually be a hindrance.
‘When you start a company with an clear revenue model, investors begin asking questions like, When do you think you’ll make X amount?” he says. “Then you’re really just selling them on the financials, rather than the dream for the business.”
Money can easily become the only concern, and that makes building a vision and growing a really great business more difficult.
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