Where does the money come from? Steemit's revenue model is an advertising model.

Most of the ways that I have seen Steemit explained since I've been here are way more complicated than is necessary. This seems especially true of answers to the questions of a.) where the money comes from and b.) how Steemit generates revenue. In general terms, these questions may be answered very simply, and without mentioning crypto right away.

Every business consists of a cost structure combined with a revenue model.

Steemit's overall revenue model is an advertising model. Every Steemit account is an advertising channel whose reach is largely determined by the perceived quality of its content. Perceptions of content quality are determined by a transparent voting system, and voting power is purchased with time and/or money. Which is where the revenue comes from as Steemit grows.

Of course, everybody knows that that the advertising industry in its present state is an unsustainable racket. Everybody is tired of the arms race between increasing consumer immunity to ads and increasingly annoying/intrusive/sinister advertising strategies. Steemit is designed to sidestep all of that nonsense. If an advertiser wants their content to be consumed on Steemit, then this content has to be perceived as valuable on its own merits. Consequently, media value becomes interchangeable with advertising reach. Steemit dynamically facilitates this interchangeability by paying the producers of media value with a combination of a.) money, and b.) quantified documentation of every media product's advertising value, which is accurate and reliable because people are paid money to maintain this documentation's integrity. The formula for dispersing these payments constitutes Steemit's basic cost structure.

So it is not a pyramid scheme. Or a scam. Or some pie-in-the-sky tech startup with a big question mark where it's revenue model should be.

Steemit's business model is incredibly innovative, but this model can be outlined in terms that are easy enough to understand.

Once a person grasps the manifold value propositions implied by this model and begins considering their potentials, it is natural to become curious about the technical details of how it all works.

This gives an explanation of the currency and the blockchain somewhere to land in the thinking of a person that grasps business principals but has little familiarity with crypto.

Hope this little memo provides some food for thought.