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Not necessarily. Netlify told me as I had blown past 20 bucks for 1TB of traffic that paying 50 bucks for every additional 100GB was 'a good problem to have'. W
by gausswho 1y ago
Not necessarily. Netlify told me as I had blown past 20 bucks for 1TB of traffic that paying 50 bucks for every additional 100GB was 'a good problem to have'. Well no, not at all. If your project is one of love, the end game is not subjecting your audience to boatloads of ads.
- thinkingtoilet 1y agoBut if your project is getting more and more usage, surely that requires more expenses. What is your alternative?
- abound 1y agoI think GP is calling out the highly non-linear nature of the pricing. $20 for the first TB and then $50/100 GB after is a 25x jump in pricing. Linear usage cost makes sense, but the more common/sane thing is cheaper unit pricing as you hit scale.
- mooreds 1y ago> the more common/sane thing is cheaper unit pricing as you hit scale. Depends on the provider's business model. Many devtools want to make it trivial to get started, and zero/low prices facilitate that. They know that once you are set up with the tool, the barrier to moving is high. They also know that devs are tinkerers who may take a free product discovered on their free time and introduce it to a workplace who will pay for it. But someone has to pay for all those free users/plans (they aren't using zero resources). With this business model, the payer is the person/org with some level of success who is forced up into a more expensive plan. This is a valid strategy for two reasons: - such users/orgs are less likely to move because they already have working code using the system and moving introduces risk - if they have high levels of traffic, they may (not certainly, but may) be a profit making enterprise and will do the cold hard calculus of "it costs me $50/100 GB but would take a dev N hours to move and will have X opportunity cost" and decide to keep paying The successful "labor of love" project is an unfortunate casualty.
- Illniyar 1y agoIt's definitely a business model. Just like a dark pattern is a pattern :) The counter to that argument is that it's creating an adverse effect on your most profitable customers, with an incentive to move to offerings that don't have free tiers (or where the free tiers are not considerably affecting your own costs). If your free tier is so lucrative that you need to 25x the cost, then your free tier is too expansive and you need to tone it down until the economics make sense.
- JavierFlores09 1y ago> The counter to that argument is that it's creating an adverse effect on your most > profitable customers, with an incentive to move to offerings that don't have free tiers (or where the free tiers are not considerably affecting your own costs). > If your free tier is so lucrative that you need to 25x the cost, then your free tier is > too expansive and you need to tone it down until the economics make sense. It does make sense, though. That's how almost every subsidized system works, and the benefit applies for everyone until they scale to a point where they are not legible for it. It does suck for the pool of people that just began paying the actual price of the service instead of the subsidized one, and certainly more so if they're not actually getting profit from it but then again, it isn't like they weren't benefitting from the price up to that point, otherwise they wouldn't have chosen it. Luckily enough, as far as databases go, there's a gazillion options to choose from and experiences like this are invaluable when it comes to picking one with a pricing model that fits the scaling requirements of a given project, and not only the technical merits. Also as a side rant, I honestly don't think "projects of love" are a good counter argument to anything. They're clearly not of love because otherwise they would find a way to make them profitable. Most people are either lazy to, or lack the knowledge of how to turn their hobby into a marketable thing. Which is fine, nobody wants to deal with business when it comes to their hobbies, but one can't have it both ways. Either your hobby project gets successful and you find ways to cover its expenses, or you realize that your hobby project needs to be kept just a hobby project.
- gausswho 1y ago
- robertlagrant 1y agoYes - they've inverted it to allow smaller projects to onboard very cheaply.
- thinkingtoilet 1y agoAh. Makes sense. Thanks.
- gausswho 1y agoFor the moment, streamlining bandwidth delivery and distributing across other free/cheap tiers. After that, the plan is to find a sales team that'll discount/sponsor the site in exchange for putting their logo in the footer. After that, maybe self-host or close up.
- asib 1y agoI hear you on that, but I would say "usage-based pricing" does not equate to "increasing marginal cost" at all. There are both usage-based providers that have increasing marginal cost and those that don't.