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Comment by pclark

This post seems to conflate two issues:

* Churn is high, optimising user flow is mediocre at best, and iteration speed is slow, on mobile.

and

* Free is bad because of privacy blah blah blah.

I personally view the first issue as kind of un-solveable. Life is hard, etc. What are you going to do, make a HTML5 mobile application? good one.

The second, ehhhhh. Users don't give a shit about privacy. Really. Really. Like, really. Hell: I'd rather use Facebook for free and let them "sell my data" versus pay $50 a year.

Anyway, I'll reiterate my #1 learning of how startups grow into businesses. There are two ways to build a $100M company:

#1 Your users have a high LTV (=$5k+) and you can afford to spend significant (=$100+) capital on acquiring the user.

#2 Your business is massively (=10) viral, allowing you to acquire users insanely cheaply.

The reason why it is – always – very questionable to charge for a B2C user is that it's generally rather difficult to have a story that makes individual people = high LTV, ironically, without having millions of them.

You need to wrap your legs around one of these two approaches and never ever stray from it.

parent pclark 14 years ago

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