Mike on Ads: Are you generating revenue?: "Doesn't matter if it’s adserver, behavioral tracking, a new media network — each idea has a revenue-generating “quick win” you can close to prove the business works. Right Media was a profitable for over a year before it launched the exchange. A single good CPA deal with AOL funded most of the first year of the company!" Creating a proof of concept in the market (user and customer demand) is something to do before one starts scaling like crazy.
Inside Facebook: Facebook’s Evolving Approach to Platform Governance: "It's now been 5 days since Slide's Top Friends application disappeared from the Facebook Platform as a result of an apparent Developer Terms of Service violation. This suspension is the most severe punitive action imposed by the Facebook Platform team that the development community has seen yet, and is at least in some sense emblematic of Facebook's evolving approach to Platform governance and regulation." Betting on an ongoing ability to annoy Facebook's or other social networks' users with forced invites and similar things is not something an application developer should do. If the social networks turn into true platforms, there is likely opportunities to build strong application companies (like on the PC). However, application developers must realize that Facebook (the company) as a service provider has more power over application developers than Microsoft had as the product provider of Windows.
Dave Perry (of Shiny and Acclaim fame) posting on Lightspeed Ventures Partners' blog: 29 business models for games. Listing 29 different ways of designing the revenue-generating part of a game's business model.