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Re:Lessons learned from a failed poker software business by Tichy on Tuesday November 18, 2008 @02:47PM (#368618)
Even if you can be successful without advertising, it seems a bit silly to be against it. If you know that by investing 100000$ in advertising, you can earn another 1000000$ in revenue, why would you not do it? Just because it loses you points in the indie scene?

I used to be all negative about advertising, but I changed my attitude since I realized that nature itself relies heavily on advertising. A beautiful flower is advertising, too. Even a flower has to announce "I am here" with colors and odors. Maybe in some cases a "social recommendation mechanism" is also at work (like the bees who inform other bees about food sources), but without such a mechanism, how are your clients going to discover you?

Re:Lessons learned from a failed poker software business by sokoloff on Tuesday November 18, 2008 @06:17PM (#368886)
One example answer is that if your gross margin is anything under 10%, you shouldn't spend $100m in advertising for $1mm in marginal revenue.

Doesn't happen often in software, of course.

Re:Lessons learned from a failed poker software business by Tichy on Wednesday November 19, 2008 @10:09AM (#369511)
I admit you have lost me here - why should one not make that investment?
Re:Lessons learned from a failed poker software business by sokoloff on Wednesday November 19, 2008 @12:07PM (#369641)
Let's say your gross margin is 9%.

You spend $100K in advertising. You get an additional $1000K in revenue, on which you make a 9% profit. You bank $90K profit from this.

You're $10K worse off for having done that advertising.

Re:Lessons learned from a failed poker software business by Tichy on Wednesday November 19, 2008 @01:26PM (#369749)
OK - not so used to terms like "gross margin" ;-)
Re:Lessons learned from a failed poker software business by cabalamat on Wednesday November 19, 2008 @10:41AM (#369531)
I'm not against advertising.