OnSwipe, the NY based iPad publishing platform, has more than 5,000 published users that use their free software to make beautiful and touch-screen friendly sites for tablets. Originally the company received six million dollars in venture backing, but this was not enough to support a 48-person team building free software.
The solution was to hire workers to focus on revenue, namely building an ad team to directly sell their own magazine-like ads. They created touchable ad units similar to flipping through a magazine. Onswipe’s business model is similar to NY based company Outbrain. They provide useful tools that publishers want for cheap, and split the spoils.