2 ms·

Yeah, it is the chat program treadmill. Spend investor money to host a completely commoditized program. Of course it is better than the version that costs money

Yeah, it is the chat program treadmill. Spend investor money to host a completely commoditized program. Of course it is better than the version that costs money by virtue of being free. Eventually run out of investor money and do something unpopular to raise revenue, leaving the opportunity for the next iteration to come in for free and take your spot. The only thing I don’t really understand is why investors keep falling for this? The only real business model is giving their money away. Maybe they get some good ad network profile data in the time between the heel turn and the point where everybody ditches the service.

hirako2000 2y ago
Investors aren't falling for it. Users are falling for it. Leaking millions for years pays off in the end, or even half way through. Some investors would exit at some stage. Taking profit due to valuation going up, despite no revenue/profit. At the end of the tunnel is acquisition by a major player who is basically buying the users. Typical examples: Skype, whatsapp. But also LinkedIn. GitHub. Businesses that offered some (basically) free offering for over a decade until reaching critical user base, then sold off for billions. Reason being precious data along with millions of daily active eyeballs.
- windward 2y ago
  Skype is ending this year. Some founders and investors won but only thanks to greater fools. (notable that three of the four greater fools in your post are Microsoft)
  - hirako2000 2y ago
    May not be clear, even to finops at Microsoft. Skype tech ended up in Lync subsequent versions, aka Skype for enterprise. The user base also became a free ad target (to buy the entire consumers tool suite) I remember being constantly nudged to sign up for the free 30 days One Drive to backup Skype pictures and the jazz. So creative these heads of sales at MS.
    - hirako2000 2y ago
      Cheaper and harder to end up in spam folder.
- Y_Y 2y ago
  It's shocking really that Microsoft didn't buy Slack and drive that into the ground too. I'm glad to see WhatsApp is proceeding relatively slowly down the Shit-en-slide, since it's completely entrenched in some countries. I've had companies who just assume that I have WhatsApp and it's cool to message me on it instead of sending a text or email.
mrheosuper 2y ago
you can make something free and still profitable. Google search for example. I've been waiting for years to see something replacing it
- genewitch 2y ago
  I haven't used Google search in over a decade.

hirako2000 2y ago

Investors aren't falling for it. Users are falling for it. Leaking millions for years pays off in the end, or even half way through. Some investors would exit at some stage. Taking profit due to valuation going up, despite no revenue/profit. At the end of the tunnel is acquisition by a major player who is basically buying the users. Typical examples: Skype, whatsapp. But also LinkedIn. GitHub. Businesses that offered some (basically) free offering for over a decade until reaching critical user base, then sold off for billions. Reason being precious data along with millions of daily active eyeballs.

windward 2y ago
Skype is ending this year. Some founders and investors won but only thanks to greater fools. (notable that three of the four greater fools in your post are Microsoft)
- hirako2000 2y ago
  May not be clear, even to finops at Microsoft. Skype tech ended up in Lync subsequent versions, aka Skype for enterprise. The user base also became a free ad target (to buy the entire consumers tool suite) I remember being constantly nudged to sign up for the free 30 days One Drive to backup Skype pictures and the jazz. So creative these heads of sales at MS.
  - hirako2000 2y ago
    Cheaper and harder to end up in spam folder.
Y_Y 2y ago
It's shocking really that Microsoft didn't buy Slack and drive that into the ground too. I'm glad to see WhatsApp is proceeding relatively slowly down the Shit-en-slide, since it's completely entrenched in some countries. I've had companies who just assume that I have WhatsApp and it's cool to message me on it instead of sending a text or email.

mrheosuper 2y ago

you can make something free and still profitable. Google search for example. I've been waiting for years to see something replacing it

genewitch 2y ago
I haven't used Google search in over a decade.