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Wanna see what a full blown network effect looks like, kidos — check out Netflix earnings.

More Subscribers ⤵️ More Revenue ⤵️ More $$ for Original Content and Licensing ⤵️ More bids won against networks ⤵️ More content on Netflix ⤵️ More Subscribers


Strictly speaking, these are scale economies, not network effects.


That is orthogonal to the network effect you see at play here, not contradictory


Network effects occur when usage increases the value of the product, as with Google or Facebook. With Netflix, usage does not increase value. It instead creates more revenue, enabling Netflix to invest in fixed costs, creating scale economies.

To illustrate, if Netflix were boundlessly funded in their early days, they could create a product that's just as valuable as it is today, even though they had no customers, and therefore no network effects.

The one caveat is that friends talking about shows with each other does create real network effects, but not what you're describing here.

Cheers


Could also view it as... more usage == more data == more value


Looks awesome, keep it going!


Thank you!!


Looks great, good luck!


A couple of years back I hacked together something similar and put it on github http://nkrode.com/article/autopilot Most people seemed to want a lot more features than just easy publishing.


nice! thanks for sharing.


brukva looks interesting, i'll check it out. thnx.


cool, i like the CLI interface - i was thinking of doing a similar widget too. are you still actively working on that project?


Hey mark - slight off topic, but why do you have to run through them, why not just offer it for 1.99 in the app store every day?


I'm the guy who runs Two Dollar Tuesday (I'm also a Mac App Developer):

A few reasons why you wouldn't necessarily do it every day:

At $1.99, he would have to sell more than twice as many copies as he is selling now to make the same revenue. Plus, he'd have more support requests to deal with. $1.99 may not be the optimal price point.

The reason to participate in any "bundle" like Two Dollar Tuesday:

- Mailing list: TDT has a mailing list of thousands of Mac users who've asked to receive the deals each Tuesday. We have a phenomenal open rate (last week was over 80%). MacUpdate, MacZot, etc., all have the same kind of thing going. Thousands of Mac users eager for discounted apps.

- Cross promotion. Someone looking for a discount on a different app might discover your app through TDT.

- The "limited-time effect" -- people are more likely to pay $1.99 for something if they know they only get one day to get it at that price. Were the price always at $1.99, you lose the sale/impulse buy effect.


Well, we could, but $4.99 is the price point we're comfortable with. We're trying this promotion as an experiment — TwoDollarTuesday helps get the word out, so hopefully, we'll end up selling enough extra copies to compensate for the temporary price reduction.


To add to @tinylittlefish's reply here, it might also have to do with perceived value. To the user, it feels like she will be getting an app within the quality range usually associated with $5 apps, but is able to get it for only 2 bucks. Something like that.


Right. Plus, the benefit of the impulse purchase is that you may gain a very vocal fan who never would've tried the app for $5.


the screenshot has been resized, the text is much larger otherwise.

agreed on the scales.


we can easily extend this for MongoDB, if you are interested lets connect.


Unfortunately my free time is a bit swamped with some side projects right now - will definitely get in touch when things die down.


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