Today, Pinboard is Ceglowski’s fulltime job, pulling in $250,000 in revenue over the past two years. He says the site has 25,000 registered users with about 18,000 active ones each month. Ceglowski’s only costs are paying for server space, and Pinboard makes money by charging customers a one-time fee of $9.50. (The fee started at $2 and goes up a penny with every 400 people who sign up.) There’s also a $25 a year archiving fee for people who want personal copies of links. “My dream is to keep this a one-person project,” says Ceglowski. “I am competing against billionaires like the YouTube guys running Delicious and I can hold my own. The tools I use have gotten so good and they are the same ones that Yahoo and Google use.”
The barriers to entry are simply too low for anyone to ignore. Any college student can start up a business with a computer, internet, and web server. You can get a business up and running and compete with the big boys in a matter of months.