Re:I am done with the freemium business model
by superuser2 on Monday January 02, 2012 @11:21PM
(#3418606)
Not necessarily true. The largest costs (especially at small scale) are fixed - the vps/dedicated box/rack/EC2 instance.
Freemium models tend to scale price with bandwidth/storage usage, which would be the largest variable costs. Is serving a million users with barely any data really that hard once you have the infrastructure to serve a few thousand with lots of data?
Freemium models tend to scale price with bandwidth/storage usage, which would be the largest variable costs. Is serving a million users with barely any data really that hard once you have the infrastructure to serve a few thousand with lots of data?