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Rent-extraction threshold: Difference between revisions
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{{a|devil|}}The [[rent-extraction threshold]] is a function of your user catchment, not the total amount of money at stake. If you have large number of users you can take a small rent, each of them will tolerate it, even for low/no value processes. We suck up our Microsoft 365 subscriptions even though you could do most of it for free on Google. | {{a|devil|}}The [[rent-extraction threshold]] is a function of your user catchment, not the total amount of money at stake. If you have large number of users you can take a small rent, each of them will tolerate it, even for low/no value processes. We suck up our Microsoft 365 subscriptions even though you could do most of it for free on Google. | ||
Likewise, a rich ecosystem of music software — genuinely staggering software it is too — thrives, at manageable cost, because there are so many home recording enthusiasts prepared to spend a couple of hundred quid to muck around at the weekend with no hope of ever making money out of it. It’s fun.<ref>I may be wrong about this but I sense that exactly no-one is going to tool around with contract automation software at the weekend for fun. Though the idea of document assembly home hobbyists is an appealing one.<> | Likewise, a rich ecosystem of music software — genuinely staggering software it is too — thrives, at manageable cost, because there are so many home recording enthusiasts prepared to spend a couple of hundred quid to muck around at the weekend with no hope of ever making money out of it. It’s fun.<ref>I may be wrong about this but I sense that exactly no-one is going to tool around with contract automation software at the weekend for fun. Though the idea of document assembly home hobbyists is an appealing one.</ref> | ||
If there relatively few potential end-users — limited scale — you must extract a lot of rent from each one to make money. The few of the users, the more each must pay. This is generally not tolerable, even for users who stand to generate significant value themselves. | If there relatively few potential end-users — limited scale — you must extract a lot of rent from each one to make money. The few of the users, the more each must pay. This is generally not tolerable, even for users who stand to generate significant value themselves. | ||