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If they get 100x the customers on a $2 tier than a $5 tier then yes, they can be profitable. The question is, could they get 100x? Or even 10x? I don’t know, a

• TylerE 2y ago
  It if supporting each customer costs them, say, $2.50
• currymj 2y ago
  for each Kagi search they hit APIs of other search providers etc., so they need to cover that cost.
  • wrasee 2y ago
    Except for these types of services scale is in your favour. A bakery has a high cost of goods sold, whereas services like this tend to have high fixed costs but relatively light costs per customer. So scale is very much to your advantage (within reason).
    • currymj 2y ago
      because they have to pay for queries to other APIs for each search, COGS is relatively high I think, which is counterintuitive for a web product like this. my sense is their fixed costs are relatively low.