3 ms·

The thing is that in 3) the company still doesn't make money.

• deleted 8y ago
  [deleted]
• marcosdumay 8y ago
  Oh, going some of the way into 4 is a requirement. The problem is when the company goes into "we did more of X, clients complained but we got paid more in the end, therefore we must do even more of X!" mode.
• goda90 8y ago
  Is that a hard rule though? Is it possible for a company to stay at 3 and make a profit? Is it pressure from investors that pushes them on to step 4, or the forces of competition?
  • bootsz 8y ago
    I don't think it's a hard rule; it seems to apply to certain companies who pursue a strategy of deliberately not making any money at first and just acquiring as many users as possible to reach critical mass and ward off competition, and then after-the-fact slap on monetization practices (specifically Ads) that degrade the product and piss off users. People don't like it when you mess with their products, especially once they already have something they really like. It's all about expectations.