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by danpalmer
1961 days ago
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> the pricing seems to scale well up to 100K users I'm not sure I agree. This isn't really an infrastructure cost, it's a direct COGS (cost of goods sold) cost, and hits the service's margin. For a SaaS business charging $10-1000 per month per user it's fine. For a retail business though I think this could be prohibitively expensive. Let's say you have a 10% conversion rate and $100 a year spend for customers, that's actually only $0.83 a month per active user. This is a 6% margin hit. Sure, maybe in retail you often don't need non-customers to log in, but maybe you do. Or maybe your active users correlate much more strongly with your paying users, but maybe they don't. Content-led, email newsletter style business could struggle with this pricing. |
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