Which monetization methods gives our video sharing website MORE revenue ?

Source: I founded www.buyads.com and www.isocket.com, which powers the direct ad sales for the web's best sites (like TechCrunch, AOL, Microsoft, etc) We hand invited the publishers that join our market because, as your question suggests, there is some threshold between who should and should not try direct sales. There are no hard rules, just guidelines. The superseding one is this: Do you have inventory (audience) an advertiser would take the time to specifically work with you for? If you open a "store" and starting selling this stuff, do people want to buy it? One measure is traffic, but that's not enough. In general we like to look for sites with 100,000 page views a month or more. But it can depend on the content and vertical. For example, we power a website that gets 25k hits a month but is the only site covering the voice over talent industry in Hollywood - so its super nichey and there is a market for those advertisers. Other examples of small but successful premium properties include some hyperlocal ones (www.queensmamas.com, www.brooklynheightsblog.com, www.brokelyn.com, etc), the largest blog for truckers, largest blog for prison wardens, etc. The conflicting examples are sites with large traffic but bad audiences/verticals. We reject a lot of "tech blog" also-rans that just copy and paste content from TechCrunch but get a lot of SEO traffic from it. Or even if it's a legit site, it can be in a bad brand-advertiser vertical like home finance / mortgages (which is mostly lead gen advertisers)

The answer depends on your situation: You could be a start-up that is more concerned with not blowing tons of money, or you could be in a rush to be done. In both situations, your objective is to find inventory sources that work quickly and then massively scale into those inventory sources. I am going to assume that the goal is to be efficient. In this case, I would start with relatively few inventory pieces and a pretty low bid. The goal of your experiment is to determine what inventory DOESN'T work while spending as little money as possible. By concentrating your spend on a few pubs, you can get to significant results quickly. If you spread out your spend, you won't generate enough clicks or backend actions per inventory source quickly enough to determine if one is actually working. (In my latter user persona, you can simply spend gobs of money to get significant results on lots of inventory quickly.) So the moral of the story is that you want to get to results, you have to scale the number of pubs you work with to align with the amount of money you are planning to spend. You would like to, within a day or two, rule out bad inventory and focus on new inventory, or alternately, make massive investments in working inventory to print money for yourself. I would be happy to do a call to further discuss.

One thing I like about your question is the fact that you're ASKING it. Trying to quantify profit. Most people never even get that far. They treat profit--especially if it is that of their own business--as some ethereal thing they will "get later" if possible. "To manage we must measure" is a business maxim and a fundamental one for me. If we don't build Profit into our revenue equation, we're unlikely to get any. And so asking this question and building profit right into your revenue target is a powerful idea nearly all small business owners totally miss. As for an answer...that amount is really up to you. What do you need to survive? There are so many variables we don't know about: what kind of business, what scale, what paths to market are you using, etc. etc. that affect costs, together with the price tolerance of your marketplace, that it's not possible to give an "average" answer. When I train business owners on how to set their operation up for success, I recommend 20-30% of revenue be built in as a monthly amount for profit. However, this is usually for consultants, and may not be possible for other business models. Sometimes 5% profit is what's achievable, say for a commodity provider, and if they make money with that, OK. Have you done any studies of comparative firms in your niche?

Yes. Use the "Link Text" in your facebook ads to A/B test various domain names. To do this, simply launch a few identical ads, and only change the link text to say the variation of the domain name you are considering. The ad with the highest CTR (not conversion rate or other KPI) will be the one that sparks the most interest in your target audience. Note: one domain may have a high relevance to one audience, but low relevance with another. So this tactic should only be used if you have a very specific demo you are targeting.

100M+ in revenues in 5 years or less does not happen very often. As an example of one sector, here is an interesting data visualization (circa 2008) of the 100 largest publically traded software companies at that time that shows their actual revenue ramp-ups from SEC filings (only 4 out of these 100 successful companies managed this feat, which themselves are an extremely small percentage of all of the VC-funded software companies): How Long Does it Take to Build a Technology Empire? http://ipo-dashboards.com/wordpress/2009/08/how-long-does-it-take-to-build-a-technology-empire/ Key findings excerpted from the link above: "Only 28% of the nation’s most successful public software empires were rocketships. I’ve defined a rocket ship as a company that reached $50 million in annual sales in 6 years or less (this is the type of growth that typically appears in VC-funded business plans). A hot shot reaches $50m in 7 to 12 years. A slow burner takes 13 years or more. Interestingly, 50% of these companies took 9 or more years to reach $50m in revenue."