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Why don't people realize that 'high software profit margins' are fugazi?

• MattGaiser 3y ago
  > But pure software products/services shouldn't be priced like their counterparts with recurring costs. There are few truly "pure" software services. I certainly don't think the ads example qualifies. Uber requires armies of customer support and recruiters. Facebook needs tons and tons of moderators. Facebook and Google both require tons of people to produce the content so that people have a reason to go. > Why aren't Google and Facebook ads a lot cheaper than they are since it's all built on dirt-cheap software? Google and Facebook ads are selling eyeballs, not software. Most importantly, the specific eyeballs for your niche product. The software is merely plumbing to connect the ads to the eyeballs. Ads would be cheap if anyone could easily make something to get tons of eyeballs coming back day in and day out and know the details of those eyeballs to know what they are likely to purchase. This would also require unlimited viewers to consume unlimited ads. So there is a scarcity of ad watchers.