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> the distribution cost is basically 0 How do you figure? Surely you know the magnitude of ad spend on software products, not to mention hosting and scaling in
by elliotec 5y ago
> the distribution cost is basically 0
How do you figure? Surely you know the magnitude of ad spend on software products, not to mention hosting and scaling infrastructure. We're not shipping cd's to every mailbox anymore but a typical marketing budget + Heroku/AWS cost is likely far higher for a typical growth SAAS startup than AOL was dumping on their physical distribution methods in the early 2000s right?
- legalcorrection 5y agoMarketing is not a distribution cost.
- seizethecheese 5y ago“Basically” is doing a lot of legwork, but yeah it’s a lot cheaper than almost anything else
- vineyardmike 4y agoIn this case, it was 0 ad spend but large b2b negotiations, so yea theres still quite some acquisition cost, but thats not really part of those calculations. Any major company that owns data centers, they have large contracts with peering for networking, which is pay-per-bandwidth not pay-per-byte.