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The marginal cost per license for hosted apps is also almost 0, for many Saas apps.
by petervandijck 16y ago
The marginal cost per license for hosted apps is also almost 0, for many Saas apps.
- revorad 16y agoThe cost of hosting a new customer might be almost 0, but the cost of customer acquisition is anything but. That's what AppSumo is presumably helping with. It's an advertising platform, much like Groupon.
- marcamillion 16y agoThat's what I am trying to figure out...how good are they at doing this.
- aquark 16y agoThe marginal cost per license may be cheap, but there may be a significant support overhead to a flood of new users. Maybe with technical web apps that AppSumo tends to focus on this is less of an issue. I've found a certain portion of non-technical users want some degree of contact with the company just to assure themselves there is a warm body at the other end. Of course, the feedback from those users would also be valuable to the startup.
- marcamillion 16y agoThe cost per license for hosted app is also almost 0, but what about those webapps that consume space - e.g. say a Dropbox or Basecamp - that actually gives storage. Then surely it's not 0. If it is something like an accounting app, then sure....but I am talking about apps that will incur a cost per each new user.