Patch costs AOL about $150,000 per site, $160 million a year
AOL is spending about $160 million a year on Patch, which equates to about $150,000 to run each individual Patch site annually, according to an analyst’s estimate. AOL first focused on building traffic to Patch sites, and just recently started ramping up ad sales. …One analyst questions the business model: “If you sell lemonade for $1 and it costs $800 to make it, that’s not a great business." Read full article....