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skyezeno

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Reply with quote  #1 
Does anyone agree with this, please stat ur experience

http://www.theverge.com/2016/3/2/11140928/app-store-economy-apple-android-pixite-bankruptcy
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Grumpy

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Reply with quote  #2 
Hey, really interesting article. It's something that worries me, our business is very fragile. It feels like if an algorithm shifts in search or a new better product hits the market, suddenly you can go from profit to loss. The point about there being fewer and fewer winners (winning more) is something that I certainly feel the market is trending towards.

However, this business sure did some things wrong. $2,000 a day to support a 6 man team feels high. Your profits double, so you increase your staff by x3 seems foolish in such a fragile business model. San Diego is an expensive place to live, hire and work. It does feel like they expanded fast and didn't keep a close enough eye on the costs. If they'd started an office outside of California or ramped up slower their costs might have been much lower.

I feel the choice of products were wrong too, photo editing/filters can make big bucks but they knew that snap chat/Facebook/Google were going to dominate this market eventually. I wonder if they got to the market at the right time to make money of the novelty from this wave and this made them skip the lessons we've learnt of how hard it is to make money, of how cautious you need to be. If they'd diversified and used this money to develop other types of apps earlier they might have been able to secure a more stable kind of income. Or they could have found a niche in the photo editing genre and built a brand around that.

It's easy to criticize, and ultimately they've done better than me so far, so who am I to judge? But if there's lessons I take from this story it's be careful how you expand!
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skyezeno

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Reply with quote  #3 
You are very right, the business is quite fragile and also relaying on a particular niche is very risky. Am quite sure what killed them wasn't the appstore but business mis-management (i might be wrong). Waiting 4 what @Martins have to say to this.
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Grumpy

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Reply with quote  #4 
He mentioned this thread a bit in his most recent revenue video (on the pro section I think), but hopefully he'll respond her, I'd like his take on it too.

The more I think about it, the more I feel they should have taken the money and ran. If you're in a market that you know will be dominated by players who are just too big to fail, you should make all the money you can and leave to invest in markets that are a little less dominated by big players, you shouldn't try and grow a business there.
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skyezeno

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Reply with quote  #5 
Quote:
Originally Posted by Grumpy
He mentioned this thread a bit in his most recent revenue video (on the pro section I think), but hopefully he'll respond her, I'd like his take on it too.

The more I think about it, the more I feel they should have taken the money and ran. If you're in a market that you know will be dominated by players who are just too big to fail, you should make all the money you can and leave to invest in markets that are a little less dominated by big players, you shouldn't try and grow a business there.


"Take the money and run" funny but totally make sense, at least if they had reasoned like you, there lives would have been better now. [Wish to join the pro section but can't because of few reasons]
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skinwalker

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Reply with quote  #6 
Quote:
Originally Posted by skyezeno
"Take the money and run" funny but totally make sense, at least if they had reasoned like you, there lives would have been better now. [Wish to join the pro section but can't because of few reasons]


How to join the pro section and what exactly it is ? I'm kinda new here, but I'm interested
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skyezeno

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Reply with quote  #7 
Quote:
Originally Posted by skinwalker


How to join the pro section and what exactly it is ? I'm kinda new here, but I'm interested
it's paid subscription bro (via paypal), you can contact Martins if you are interested
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