How to Draw 22 Million Visitors to Your Website
Step Two: Be Willing to Evolve
It's not as easy as it sounds. Since launching Pandora in 2005, Westergen has revised his business plan several times. He has variously toyed with the idea of charging listeners a subscription fee, with making money through licensing arrangements, and with the idea of placing Pandora's technology in store kiosks. Along the way, Westergren was rejected by venture capitalists no less than 350 times. Still, the entrepreneur kept at it until he found a business model that worked. Westergren eventually settled on a strategy that relies on a hybrid of ad revenue, subscriptions, and revenue sharing deals with web giants like iTunes and Amazon. Today, the Pandora does about $25 million in revenue annually.