Company
Date Published
Author
Matthew O'Riordan
Word count
1941
Language
English
Hacker News points
None

Summary

The concept of being a fan is evolving, with fans seeking more interactive and engaging experiences. However, delivering these experiences can be challenging due to the limitations of traditional pricing models, such as Monthly Average User (MAU) pricing. This model can lead to economic issues, including paying for unused capacity, becoming the victim of one's own success, and waste due to overpaying for infrastructure. A better approach is needed, one that aligns costs with actual fan behavior and charges customers only for what they actually use. Companies like Slack and Amazon have shown that true consumption-based pricing can be more sustainable and fairer. An alternative model, such as per-minute billing, can help reduce waste and optimize costs without compromising the fan experience. By focusing on fan-first pricing, paying only for what is used, success reducing costs, and smart cost management, companies can build engaging fan experiences without limits.