this post was submitted on 23 Sep 2023
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Exactly this. Just like how reddit very quickly made enough in reddit gold sales to cover their server costs for decades, the only reason it's operating at a loss is because they're running it that way.
Can you cite an example where this has actually worked/led to a stable business model?
I can cite an example of it with an inventory based company. KIA sold their cars at damn near a loss in the US for a long time to get a good foothold. And it worked. Iirc they had a bogo on cars at one point even.
Amazon undercut like crazy and is utterly massive today. They're basically the online shopping company.
Amazon is a goods-based business though, they ship massive amounts of inventory.