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by bit_savager
1400 days ago
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> "I'm not reading your site if you paywall it. There are too many other free resources that are just as good if not better." This really indicates what our economy has become. Everybody talks about the two business models companies employ; ad-supported or fee-based. These are the selling models Occasionally, piracy is discussed. While it may be a business model, piracy obviously isn't a selling model. It is a consumer consumption model though. We do have another consumption model that is more difficult to see because it does not include any explicit agreement between a company and a consumer. This emerges from companies that begin using loss-leading (money-losing) models to gain customers, initially. They then expect that they will generate a network effect or be able to rely on inertia (what Malcolm Gladwell generalizes as "sludge") to retain those customers when they later change their model to something profitable. This fails because there is always another business trying something similar. Each of these companies has the same global reach and customers can switch easily between them so they just hop from one unsustainable bargain to the next optimizing their own costs. They are disloyal leeches. I don't say that to be derogatory; it just seems the best description. |
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Consumers are mercenary, as are companies, and that’s the rational way to be in an economy of scale, where loyalty is “brand loyalty”. If consumers aren’t loyal, it’s a failure of the company’s marketing.