Wednesday, March 14, 2007

The value of non-paying customers

What's the value of a customer who doesn't pay you anything? If you're running a hot dog stand, the answer is probably "zero." But if you're running a two-sided market - a market, like eBay or Monster.com or AdWords or YouTube or Digg or even Second Life, that needs to attract both buyers and sellers (or content generators and content consumers) - the answer may be "a lot."

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