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If your cost per user is less than the incremental revenue each user brings you, it doesn't matter how little those users cost: You're still following the "we'
by tom_rath 19y ago
If your cost per user is less than the incremental revenue each user brings you, it doesn't matter how little those users cost: You're still following the "we'll make it up on volume" battle cry in the wrong direction.
Bandwidth and server costs are still costs. Whether you split those costs among four customers or four million, you still need to recoup them and show a profit to create a sustainable business.