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This submission kind of reaffirms the idea (from a slightly different angle) that it is good to start with a good, free service and monetize it later. In the pr
by BrandonM 18y ago
This submission kind of reaffirms the idea (from a slightly different angle) that it is good to start with a good, free service and monetize it later. In the provided example, an online world purposely capped spending in hopes of getting a better public perception. Consider also that simply in doing so, they have generated some positive awareness of their company.
It's nice to see "Do good" being exercised in business and being successful; I think that's the approach that leads to the most happiness for everyone.
- jacobscott 18y agoDisagree. More likely they realized that sustainable revenues from teenagers was a better bet than being the online equivalent of a 1-900 number, then having parents pull the plug and dispute charges. Save the general concept of a long-term play, I see very little here that implies anything about the free service -> monetize later path.
- BrandonM 18y agoThe free -> monetize angle I was referring to was their reference to craigslist. I agree with you on the sustainable revenues part, that's basically what I was trying to get at.
- jacobscott 18y agoWith regards to craigslist -- I don't think that they ran with a high burn rate or took much (if any) VC money. Today, they are certainly profitable, although probably not making as much money as they could be. I think the key is to make sure you know how you will be making your long-term money before ofering stuff for free.