Instagram’s Business Model?

Shawn Blanc

Sara Lacy of PandoDaily asks him (Instagram CEO Kevin Systrom) how Instagram plans to make money. Based on his answer it sounds like: (a) their current user-base of 30 million-ish people is not yet big enough to start monetizing the service; and (b) their plan is to build a tool that advertisers can use so they don’t have to go through the “terrible experience” of using their iPhone to post an image to Instagram.

It could be me but I really don’t get it. If you are not even capable of monetizing the most succesfull mobile app, then who could? If I were an investor I would pull my money from these guys.

And advertising, seriously? Do you need that long to come up with advertising as a model? It ‘d better be a new way of advertising then. Looks like a pretty ordinary upload module to me, no?

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