To the point where you have trouble getting more users. MySpace is the classic study here. How do they scale all those windows servers? ~ http://www.baselinemag.com/index2.php?option=content&tas...
Not to toot my own horn here, but my (very, very boring) website makes about ~$80 for 1,000 pageviews. It is built on Rails. Supposing I totally screwed the pooch and it was structurally incapable of doing more than 100k page views a day without a top-to-bottom rewrite.
Suppose I got to that $8,000 revenues a day and figured "You know what? This is too darn constraining. I WANT MORE, BWAHAHAHA". I'd be able to hire whomever I pleased to do the rewrite (pay $5k a day for my own ops team, who cares, I can afford it). And it would be vastly easier scaling my site than Myspace/Twitter can scale theirs, because I would not have to set world engineering records to do so.
The first response any engineer is going to make is "Erm, you should probably think of putting multiple web servers in front of a beefy database rather than running both web server and database out of a machine with 256 MB of RAM." This is a pretty easy engineering problem compared with "OK, innovate technologically to be able to handle data on a scale that 5 years ago would have required a major multi-national corporation or minor nation state to generate."
Then I'd be back to the boring-as-dust business of, you know, providing features to convince my customers to continue paying me money.
Assuming your $80 CPM site is the one in your profile (if it is, what does it use Rails for? edit: nevermind, just read your blog post about your cron bug :p), then it's not very surprising, since it offers a product for download. What would happen if your product made more sense as an online service? If you charged the same price and got the same number of sales, how much would it make per 1,000 pageviews? It would still be a lot more than advertising revenue, but nowhere near $80 CPM.
Experience counts.
McScrooge approves this message.
That's what friendster thought too.
Friendster became very popular but couldn't handle the scalability part and ended up dying a slow and painful death...