Re:Apollo will close down on June 30th
by melvinmelih on Thursday June 08, 2023 @04:04PM
(#36247998)
I genuinely don't understand the "pay me 10 million to save half on 20 million of costs" negotiation tactic... if they wanted to save money, why wouldn't they just shut down the API access?
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They say somewhere that the 20m is from opportunity cost, so 10m for an app that's "costing" them 20m a year would be a deal.
Exactly. They’re not doing the deal because the $20M is complete BS.
The whole thing was just to illustrate the point that he thinks the Apollo API access is worth nowhere near $20 million a year in opportunity cost.
20 million/year is how much the Apollo users would bring in when served ads (the opportunity costs).
Reddit pays Apollo 10M, starts serving their ads in the app, and now rakes in 20M/year without any extra effort.
Conversely, now they need to convince all the angry users of Apollo to come back to use their shitty website/app, something that will never happen. A lot of people that aren’t even using Apollo are going to be angry at the mistreatment and leave the site altogether. On the whole it’s quite likely that Reddit’s losses will amount to more than the 10M they’d have to pay once to get a ton of money in the future.
Re:Apollo will close down on June 30th
by karmelapple on Thursday June 08, 2023 @10:11PM
(#36252254)
That sounds like a reasonable benefit to bargain over, but only if you have a great negotiator to make it happen.
Wouldn’t happen. $20M number is completely BS.
That’s on Reddit. The exact number doesn’t really matter for purposes of this explanation, and I suspect it doesn’t really matter to the Apollo creator either. It could be 2M or 500K, the equations remain the same.
It's not a negotiation tactic. It is a joke because the numbers they are talking about are a joke. He's saying that if they think Apollo is can make Reddit 20 million a year then just pay him 10 million and they can keep the change. The truth is both sides know these numbers are b*sh*.