3 ms·
If you've got a high growth rate and you're improving process quickly enough, this is essentially an ethical Ponzi scheme. Previous_gen_users << current_gen_us
by ethbro 9y ago
If you've got a high growth rate and you're improving process quickly enough, this is essentially an ethical Ponzi scheme.
Previous_gen_users << current_gen_users
Ergo, take a one-time charge to upgrade your previous gen users to current, with the revenue from your current gen growth.
Key points here are probably: (1) that it's unexpected & doesn't create an expectation (unsustainable), & (2) that it's unannounced & properly timed (manage the Osborne effect & avoid screwing customers who choose to pay to upgrade themselves ASAP)
It won't fit all business models / products but seems practical in most cases.
- ImSkeptical 9y agoWhy is it ethical to ship a low quality product to generation one customers? I think you're breaching ethics anytime you aren't providing a decent quality of product. Some products are a great fit for releasing something quick and fixing it later, like a free website. Other products, especially physical goods (car parts, medical equipment, etc) this is obviously a terrible strategy.
- ethbro 9y agoBecause, from the article, you never know you're shipping a low quality product at the time you ship it. Failure modes are complicated. It's not as simple as "Ah, this thing will obviously fall apart in a few months."
- ImSkeptical 9y agoI have no problem with how the guy in the article did it. He thought he had a good cement formula, shipped it, discovered he didn't, fixed it. I do have a problem if people intend to ship a defective product and fix it later (in some circumstances).