One idea presented was to team up with gyms and try to acquire sponsorships. I can see this generating a small amount of revenue. In addition there should be some advertising revenue. However, the advertising revenue will not be significant until a very large amount of users are on the site. This means that early operations that only target local DC areas will likely not be sustainable and will likely not payoff the initial costs of developing site in any reasonable amount of time. This suggests a few things from my perspective:
- Seed funding will be necessary to create the site. The site will need to be high quality to attract the younger audience that will be the users of the site.
- The site should support as many locations around the country as possible as quickly as possible. A strong marketing push would help to rapidly raise awareness. I could see marketing sessions on college campuses, popular malls and highschools helping to quickly spread the word. Access to the site by users has to be free.
- This idea has a low barrier to entry so I think it will be important to quickly storm the market and get deep penetration into as many areas of the country as possible.