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And if they had set the subscription cost to, say, $2 a month, they might have had 200,000 "members" by now.
by Exoristos 3y ago
And if they had set the subscription cost to, say, $2 a month, they might have had 200,000 "members" by now.
- mminer237 3y agoAnd they would be losing money with every user then. It costs them way more than that just to pay Google and Microsoft their fees.
- Exoristos 3y agoHow does that work? They have a contractual obligation to report to Microsoft and Google how many individual IPs have accessed Kagi domains and pay accordingly?
- darekkay 3y agoNo, they pay per search query. 200k users make statistically 10 times as many queries as 20k users.
- mminer237 3y agoNo, they just pay for their APIs per search. It costs Kagi about 1¼¢ per search.[1] Each user searches 20 times per day on average.[2] So it costs Kagi $7.50/month just to physically provide one person with search results, ignoring any overhead like buildings and employees. To keep the lights on they have to charge at least more than that. [1]: https://blog.kagi.com/status-update-first-three-months#financials https://blog.kagi.com/status-update-first-three-months#finan... [2]: https://kagi.com/stats https://kagi.com/stats
- al_borland 3y agoIn the early days, as a user you could see how much your searches were costing them vs what you paid. One month I threw them an extra $10 or $20, as I was costing them more than I paid, even at $10/month. The goal should be profitability and sustainability, not user count. It’s not a social media site where the number of users should matter. The hardest hurdle is getting people to pay anything. Even 1 cent would be difficult, as it requires a sign up and adding payment information.