4 ms·

> Why have 1bn users and make $1 per user? Isn't it better if then have 200mn users and make $20 per user? In one case you make $1BN and in the other you make

by efdee 6y ago

> Why have 1bn users and make $1 per user? Isn't it better if then have 200mn users and make $20 per user? In one case you make $1BN and in the other you make $4BN. So yes, the latter would objectively be better. :-)

Darmody 6y ago
Not necessarily. Sometimes more users is better than higher revenue. If those 200 million users have to choose between paying you $20/year or paying only $1 and joining a network with 1 billion users...they'll probably choose the later. Then you won't see those 4 billion dollars.
- ethbr0 6y ago
  It depends on the business. If users cost $0.05 / user to support, that's very different than $1 / user. Software products scale... but they don't scale completely free.
  - Darmody 6y ago
    Yes, of course, but we're talking about messaging apps like Whatsapp.
    - ethbr0 6y ago
      And in the 90s, that would have been bandwidth. Now, widely used messaging platform also means content moderation team and local law enforcement alignment.