I don't read the Huffington Post - and neither should you - but I found this article that discusses their business finances quite interesting having a background in the dot com era. Estimations are that the Huffington Post has enough funding to last a little more than a year and is burning $1 million a month with a staff of 100.

The Huffington Post is not a membership based website, nor e-commerce pumping out products like Amazon, it is a multi-user blog pawning itself off as a legitimate magazine. However, with only revenue coming from advertising - and knowing the numbers having been online for years - there is absolutely no way that looking at their website they could possibly be generating $1 million per month to simply break even.

Back in the dot com boom many a vast website was launched and run for years on what they are burning in a month. My own forays resulted in a top 5 sports website (just behind mass funded orgs like ESPN and CBS Sportsline). $1 million lasted 2 years with a top end staff of 14 at its height. We did so through innovation and automation to keep costs down as low as we could.

For the Huffington Post to be burning that much a month, with that high of a staff count, they are surely to go down the tubes. That is one of the reasons that Ralph Benko over at Parcbench.com has setup the Huffington Post Deathwatch.

They have lasted this long with an "investment" from one liberal bigwig named Fred Harman who dumped $25 million into the Huffington Post thus putting its valuation at the time at $100 million.

Just goes to show that as much as liberals want to tell you what to do with your money, when it comes to business of their own all they know how to do is blow other people's money on stupid worthless ventures without doing so using innovation, efficiency or basic common business sense.

Tipped by: Say Anything