If you were to ask me if Digg is a model example a grassroots method of getting a lot of people on board with sharing the latest news out there, I would agree. But to think of this as a stellar business model is still a bit premature I think. After all, like so many DotComs of the ’90′s, Digg has yet to become profitable.
So while there is projected potential for profitability this year, I remain very skeptical despite Digg being considered one of the famed top 50 websites out there. It just lacks an ad-friendly audience in my opinion. And I may very well be wrong on this, but my gut tells me I am spot on.
Down the road, with nothing more than sheer volume, I can see Digg moving itself into the green with regard to actual earnings without more funding. But I also think that they could do so much better with better, more on topic advertising. Despite the included video on the link above, I have yet to see evidence of any targeting whatsoever.