Paid Is The New Free
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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