VIM Adventures. The Instagram Architecture Facebook Bought for a Cool Billion Dollars. It's been a well kept secret, but you may have heard Facebook will Buy Photo-Sharing Service Instagram for $1 Billion.
Just what is Facebook buying? Here's a quick gloss I did a little over a year ago on a presentation Instagram gave on their architecture. In that article I called Instagram's architecture the "canonical description of an early stage startup in this era. " Little did we know how true that would turn out to be. Which is better: Many customers at low price-point or few at high price? by. The results of a serendipitous live experiment were recently published as guest posts on this blog.
Sacha demonstrated the benefits of selling many copies of an eBook at a low price, while Jarrod pointed out the advantages of higher prices, bringing in more revenue with 1/6th the number of units sold. The ensuing discussion swirled around the merits of selling more units (i.e. maximizing reach) versus selling more expensive units (i.e. maximizing per-unit profitability). This is a choice that every startup founder must make, so I’d like to dig in deeper. To clarify the discussion, let’s use a simpler model: Companies A and B both sell products with recurring monthly revenue, and both brought in $10,000 in revenue last month.Company A has 1,000 customers each paying $10/mo.Company B has 10 customers each paying $1,000/mo. Html5shiv - HTML5 IE enabling script.