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But if your growth is in some way viral/exponential due to word of mouth/recommendations, then you're better off having 5x as many users today. In very crude t
by adamt 15y ago
But if your growth is in some way viral/exponential due to word of mouth/recommendations, then you're better off having 5x as many users today.
In very crude terms:
$1 x 5x5x5x5x5 is a lot more than $5 x 1x1x1x1x1x1
- epo 15y agoSpecious bit of hand-waving featuring made-up numbers. My rule-of-thumb is to disregard people who plead virality, especially if they call themselves marketeers. High sales get you into the top 10 lists which is really worth having (you can call that viral if you're desperate), otherwise high sales increases both the support burden and the likelihood of negative reviews. However, an app like this has niche appeal (writers) and there is no doubt that exposure within that niche is beneficial. So word of mouth is important, but is not gained by simplistic approaches. Promotion within the niche is likely to be more productive than promiscuous price cutting. For a game, a different strategy would be appropriate.
- sliverstorm 15y agoOn the other hand, there is a limited pool of potential customers in this world. If you have a pool of 100, better to sell 10x for $10 today than 100x for $1. In the first scenario, you have 90 more customers to pursue tomorrow. In the second, you either need to make a new unrelated product with a new purpose or different audience (ex. Sony), expand your audience (Nintendo + Wii) or invalidate/depreciate the old one (Apple) to secure any more sales. Edit: I forgot, there is also, extend your product (DLC)
- mattmanser 15y agoIf it were, revenue would be going up. Did you read the article?