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This argument strikes me as shortsighted, because it could apply to many products & services. Consider a company that sells dishwashers. Most people only need
by tedsanders 6y ago
This argument strikes me as shortsighted, because it could apply to many products & services.
Consider a company that sells dishwashers. Most people only need one dishwasher, so as you soon as you buy a dishwasher from that company, you're out of the dishwasher market. At that point, the company no longer will get revenue from you, so they might as well sell you a dishwasher that doesn't last and breaks down. And yet, we see that some dishwashers are actually fairly functional and long-lasting. Why is this? It's because (a) you might need another dishwasher in a few years, so it's good to give you a good experience, (b) if you have a good experience you'll recommend this dishwasher to other potential customers, (c) you might be the type of customer who buys many dishwashers in volume and this good experience will cause you to buy more here. All three mechanisms incentivize selling a quality dishwasher.
Similarly, a dating app that achieves good outcomes for its users may, in the short-term, deplete its pool of users. But in the long-term, those satisfied users may (a) come back, (b) tell others the app is good, or (c) continue using the app.
- polote 6y agoThere is no membership to buy dishwashers. And there is planned obsolescence which mimic this behavior. Compare that with clothes, the whole economy of fashion is built on people not wearing what they buy. Same with gym membership. There is nothing new. And there is no monopoly in the dishwasher market. Match until 2019 owned almost all the popular dating apps. This article for more info : https://marker.medium.com/what-i-learned-about-the-business-of-dating-apps-after-trying-to-build-one-8e5d04225c21 https://marker.medium.com/what-i-learned-about-the-business-...