Earlier quoted context omitted.
Fair enough but by bringing it up in a thread about someone with a botnet screwing people over...its pretty reasonable to conclude that is what you meant.
Whilst most VCs aren't doing anything anywhere near as patently unethical as funding a Clickfraud-as-a-Service app, if they're "disrupting" competition through little more than willingness to make negative profit margins on each sale, that competition ends up just as screwed if their pockets aren't as deep. Either if way they're spending money on making you poorer rather than themselves richer in the short term it's…
I was just trying to spread the word to other startups that the auction-based paid advertising model might work initially, but gets really tough to sustain as it naturally evolves.
In a non-auction based method, the evolution to "zero margin" may be a slower process. Yet those non-auction methods of paid advertising (billboards, magazine, TV) are just horrible for tracking & closing the loop as to be obsolete, and are often too expensive for startups to even enter anyway.
The best advertising is to realize that your customer service/support function is not an cost, but rather an investment in word-of-mouth advertising. Investing in great customer service is often the best modern marketing.