What is business?

YouTube starts a server and serve user generated video. It lets other websites to pull video free of charge. As its' user s reaches millions, google bought it. Then google starts to serve ads on its popular video.

For the first few years, YouTube is losing money heavily. It has no income. Only when it is sold to google, the creator makes money. And when google put ads on the video, google is making money.

Is this the 21 century business? YouTube is very valuable to most people. I used it to learn dance from international artist. I listen to songs. I learn about iPhone korg connection. And my cheque writer gets users from it.

Waze is a horrible app but it claims to have million of users. It is useless in Singapore. Why google buy it? Is it because it is supplying traffic to apple map? In a way, google has huge users. It is losing money on its server until it starts to have ads. 

Principle is

- build a site where largest number if users in 3 years. 

- add ads to generate income.