The days of building a website with no revenue streams except for advertising are over. Thousands of people are still building websites and expecting to get enough traction on the website to sell banners and they expect to do well. In this market and especially this economy where advertising is drastically down, unless you have myspace or facebook like traffic, this model will no longer work. If you are launching a start up Internet company, I beg you to have a revenue model in mind where significant revenues will start coming in within the first year of operations. Either sell a product or sell a service. Do not give away a product or a service and expect to sell advertising space around it. This worked for awhile, but it has ceased to work and it will never work again.
Especially if you are trying to raise angel capital or venture capital for your company, no one is going to fund your company unless you can actually bring in revenues to support the costs and growth of your business. Sites based soley on advertising dollars are now considered dead money in the finance community. I urge all entrepreneurs to go after a revenue stream and make sure they bring in money for their company.
One of the easiest ways to do that is to set up a user friendly website, perform search engine optimization on the website to drive traffic, and then make sure you actually sell something. It is a simple business concept and it is what works in this economy. Find the money and follow it. Do not chase dead money!