Gaming Sites Arbitrage
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A gaming website that evolved into an advertising arbitrage business during the dot-com crash, leveraging relationships with advertisers and other gaming sites to create a profitable broker model.
Key Points:
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Initial Gaming Website (PSX Extreme)
- PlayStation fan website launched in 1998-1999
- Generated content: cheat codes, reviews, screenshots
- 10,000-20,000 unique visitors per day
- Initially made $5,000/month from direct advertising
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Pivot During Dot-Com Crash
- Ad rates crashed from $3 CPM to 30¢ CPM
- Revenue dropped 90% despite maintaining traffic
- Forced to innovate new revenue streams
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Advertising Broker Model
- Directly sold advertising to maintain revenue
- Approached larger gaming sites with excess advertiser demand
- Brokered deals between advertisers and other gaming sites
- Generated additional $10,000/month from brokering
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Business Evolution
- Started as content website
- Transformed into advertising middleman
- Combined both revenue streams for $15,000/month total
- All managed as a high school student
This model worked by taking advantage of market inefficiencies during the dot-com crash, connecting advertisers who wanted to spend with websites that needed revenue.
Val Katayev
Immigrated to the U.S. and built a business from scratch, starting with zero capital. Became Google's second-largest advertiser after eBay.
Ran ads from his parents' house, showcasing entrepreneurial spirit from a young age. Featured on notable platforms, sharing insights from his journey as a serial entrepreneur and investor.