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A great example of why the "number of users" metric is being overvalued. Until there is a solid, proven and scalable business plan to translate usage to revenu

A great example of why the "number of users" metric is being overvalued. Until there is a solid, proven and scalable business plan to translate usage to revenue the $100 per user standard valuation shouldn't apply.

scosman 11y ago
Maybe for late stage investors, but if you applied that strategy as an early stage consumer investor you would have missed almost much every big hit (FB, Twitter, Snapchat, Instagram, etc).
- nine_k 11y ago
  Twitter is a dubious hit. It's wildly popular, but its profits are very unimpressive, to say the least.
  - scosman 11y ago
    $20B market cap. You could argue it should be $10B, but 'dubious hit' for an early stage investor is ridiculous.
tajen 11y ago
OTOH, Many companies provide B2C services to million users for free as a side effect of raising awareness for their B2B paid offers. I wonder whether society should value this benevolent side effect to the point of reclassifying their primary purpose to "Providing a benevolent service". Yes, I'm almost being ironic because it's a failure of a business model, and I'm afraid of whether GitHub will maintain its public free service for long.
username223 11y ago
> $100 per user standard valuation Is that actually a thing? If so, I can retire on the valuation of my obscure vanity blog, but I'm also worth a few million to websites I've accessed.