[willwinger]

A 'path to profit' is the time tested lifeline of any enterprise. However this is never highlighted as it doesn't bode well with the general social psyche of humans.

For last 20 years, tech enabled startups, chose 'postpone profit' strategy adopting 'free to use' or 'ad supported' approach helped by raising high capital to build moats around the target market.

Now this trend can be either seen as a moment where the moat is complete and 'path to profit' is through captive customers. (Or) a decline/failure of the 'postpone profit' strategy accelerated by the current economic recession.

All social media and any other free to use switching to subscriptions is quite a probability now.

[Buttons840]

An ironic thing is that companies that choose to postpone profits will find that when the time comes to charge for profit, they will have burned all good will, and people might finally be coerced to pay, but they'll pay any other company.

[syndicatedjelly]

It’s so stupid because there already is a playbook for being profitable and still giving your product away for free. It’s the free trial. Hey, we want to earn your trust, so here’s a free month of the service. If you like us, great! Here’s the price at the end. Otherwise no hard feelings.

Instead, the playbook now is:

WE ARE FREE. YES, FREE AS IN NOTHINGBURGER DOLLARS. WE ARE BETTER THAN FREE! WE WILL PROMISE YOU ANYTHING YOU WANT! PUT ALL YOUR INFORMATION HERE AND WE PROMISE TO MAKE YOU FAMOUS AND RICH!

lol jk gimme that data. Also you’re locked in/addicted to our platform. Give us your money.

[amadeuspagel]

> 'free to use' or 'ad supported'

These things are completely different. Facebook became profitable 4 years after its funding.