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I wonder how much the per-search cost is marginal cost vs. amortized fixed costs. If their paying user base grows by 10x, do the searches drop from 4¢ each to
by function_seven 4y ago
I wonder how much the per-search cost is marginal cost vs. amortized fixed costs.
If their paying user base grows by 10x, do the searches drop from 4¢ each to 2¢ each?
- Tumblewood 4y agoMost of their cost comes from API accesses to other services (e.g., Bing), so unless they can replace those API calls the price cannot go down very much.
- Gareth321 4y agoAPI access is negotiated by volume, so as they grow, they can negotiate preferential pricing.