Re:WeWork says will file to withdraw IPO
by akulkarni on Monday September 30, 2019 @01:08PM
(#21117445)
> I am much more wary of companies that keep or burning cash for years and years with the only excuse that "Amazon did that as well".
I think about this a little differently. Spending money on free users is actually a much more efficient "marketing expense" than classic outbound strategies (e.g., online advertising).
Re:WeWork says will file to withdraw IPO
by john_moscow on Monday September 30, 2019 @01:34PM
(#21117731)
Yes, but if your marketing expenses systematically exceed the revenue from the paid customers, your business isn't viable.
>In fact, I would be wary of software companies without a base of free users, as that means the company needs to keep spending a lot of its revenue on sales and marketing. I am much more wary of companies that keep or burning cash for years and years with the only excuse that "Amazon did that as well".