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N70Phone | 4 months ago

My point is that for these purposes, users are not fungible. You can't just divide the cost-revenue equation by the amount of users N on both sides.

> No it's not.

If you add a pile of fictious users to the usercount, the apparent average cost-per-user drops as the fictious users do not use the service and do not add their own costs. This lowers the apparent amount of per-user revenue you need.

However, as fictious users also do not generate revenue, this is all smoke and mirrors.

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famouswaffles|4 months ago

>My point is that for these purposes, users are not fungible. You can't just divide the cost-revenue equation by the amount of users N on both sides.

Again, yes you can if you're simply trying to see the relative level of value you need to extract from your users. It's not a complicated idea. $8 is well below what Google, Meta report. You were wrong. They don't need to reach a high bar. End of story.

>If you add a pile of fictious users to the usercount, the apparent average cost-per-user drops as the fictious users do not use the service and do not add their own costs. This lowers the apparent amount of per-user revenue you need.

As always, nonsensical hypotheticals are just that. Nonsensical.

Not only can the users you're talking about not exist in reality, the numbers being thrown around are literally based on their Weekly active users.