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Usually chasing revenue means charging for things - removing free and instituting freemium in its place, for example. Generally speaking chasing revenue means p
by potatolicious 12y ago
Usually chasing revenue means charging for things - removing free and instituting freemium in its place, for example. Generally speaking chasing revenue means pissing off some portion of your user base (i.e., the people who had no intention to ever pay you), and in doing so limiting your growth rate.
Valuation is deeply linked to growth rate and user base in this crazy industry of ours, so "we have X committed, paying users" is worth less than "we have 100X actives!!!!11one".
- S4M 12y ago> Usually chasing revenue means charging for things - removing free and instituting freemium in its place, for example. Generally speaking chasing revenue means pissing off some portion of your user base (i.e., the people who had no intention to ever pay you), and in doing so limiting your growth rate. Not sure I agree. You can give for free a limited version of your product and charge something for a better version, or you can use the freemium model.
- potatolicious 12y agoYes, and the company that doesn't have to care about revenue can just give the entire thing away for free and get users to sing their praises. They will grow faster than you. This is why the "no-revenue" play works (well, until it stops working).