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That was an insightful comment, pointing out a pattern. - [A SaaS startup or established platform] has a huge marketing budget / money to burn when starting up
by lioeters 6y ago
That was an insightful comment, pointing out a pattern.
- [A SaaS startup or established platform] has a huge marketing budget / money to burn when starting up.
- Early adopters see great returns because someone else is paying for a bunch of advertising for them.
- They tell their friends and slowly the system grows to a critical mass where you're losing out if you're not on it.
- Then they abuse their market position and do stuff like this.
To put a name to this trend, to call them "subsidized services", makes it clear to recognize how much of business/software/web ecosystem is getting consumed by the strategy.