Yeah but usually those &quot;traditional&quot; business have something more concrete to invest in e.g transportation, inventory, manufacturing or buying shelf space.<p>I imagine if &quot;SnapChat&quot; blows up, they won&#x27;t need to hire the engineers GameApp0, FoodApp1, CarApp2 let go.
It doesn&#x27;t really need to scale like a &quot;traditional&quot; factory.<p>I get what you&#x27;re saying, and I am not arguing against your points. I am just trying to get clarification if I&#x27;m worried for no reason.
The salaries are high because so many startups live on credit. Eventually they die and the supply is higher than the demand.