How To Save Plug.DJ

Okay, I am going to do some terrible terrible math, biased on what Plug has released to us.

We know that Plug get's 60,000 daily users. Let's make this a monthly figure and times it by 30. That brings us to 1,800,000 users a month.

Now we know that Plug needs $60,000 a month to keep their head above the water, we take the $60,000 a month and divide it into 1,800,000 users -- we are left with each user costing the server 0.03 cents a month. Which in retrospect is nothing at all.

Now If I am assuming correctly, each user potentially costs plug 3 cents a month. Which gives us 1,800,000 users a month. Each user is likely to tell one friend about the site, say it works and we deviate to 2,000,000 a month. That is just in sheer volume transition through word of mouth, free advertising. Now let's say if you subscribe, you are 4x as likely to tell your friends about it. We get 1/100 of these people to subscribe and we are sitting at 20,000 subs a month. However, they are more likely to tell friends and double us to 2,500,000 a month. 1/100 of these people subscribe and we are getting 25,000 subs a month. So for ever 500,000 people, we get another $5,000 more dollars at a cost of $150 more a month. So a total of $4,850 extra dollars we're raised by doing --- nothing.

So at 2,500,000 people a month, we are making about 25,000 --- which is less then what we need to survive. We math it out, and we are sitting at about 6,500,000 a month in people, which is 216,666 users a day. Which is better, get our current 60,000 up to 216,666 or drop down to less then 10,000 due to unnecessary restrictions, and possible even drop lower then that. In the long run, at 3 cents a users, going from 60,000 to 10,000 only saved us $1,500 and that isn't even guaranteeing that all those 10,000 are subscribed -- as they could just be using the free 30 minutes thing. So if we use the 1/100 are subbed that gives us 100 users a month that are subbed. Which is 100 bucks, but we are still spending 300 a month to support all 10,000 users.

So I believe it would be better to strive for higher numbers to support the site, through the free advertising that I have brought up before, rather then buckling down to a select few focus group. Which would almost entirely kill plug in the process, because when it finally became profitable, 90% of people who left, would not come back. So it would put plug to Square one, trying to find people to join the site, with an added negative of convincing the people you burned that you are better now.

/r/plugdj Thread Parent