Saw this blurb on MarcPorcelli.com, and thought it was interesting.
Still others like the worlds largest free online dating site, PlentyOfFish.com (POF) are perhaps beginning to hit a wall. Here is what CEO Markus Frind said recently, “The problem with free is that every time you double the size of your database the cost of maintaining the site grows 6 fold. I really underestimated how much resources it would take, I have one database table now that exceeds 3 billion records. The bigger you get as a free site the less money you make per visit and the more it costs to service a visit.
Never really stopped and thought about the point of diminishing returns that happens at a certain point when you are running a free (ad supported) service.
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