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Many young techies are accustomed to chasing one specific type of profit function: namely, massive quantity x low price. Ancestry.com is a good example of the
by jonnathanson 14y ago
Many young techies are accustomed to chasing one specific type of profit function: namely, massive quantity x low price.
Ancestry.com is a good example of the opposite, though potentially very lucrative function: small quantity x high price. The site has only a few million active users, but each of them pays a decent chunk of change per month. Those users also use the site very frequently, and for long periods at a time. (Again, contrast this with a service like Facebook: lots of users, each one presumably browsing or using in very quick and sporadic bursts).
People forget that a market involves both # of users -and- willingness to pay. There's more than one way to reach a large addressable market.