A note from Sary

Providing Pricing Flexibility: Buffett and Munger understand that habits give companies greater flexibility to increase prices. For example, in the free-to-play video game business, it is standard practice for game developers to delay asking users to pay money until they have played consistently and ha-bitually. Once the compulsion to play is in place and the desire to progress in the game increases, converting users into paying customers is much easier. The real money lies in selling virtual items, extra lives, and special powers. More than 500 million people have downloaded Candy Crush Saga, a game played mostly on mobile devices. The game's "freemium" model converts some of those users into paying customers, netting the game's maker nearly $1 million per day.

Sary Hooked, page 20 · October 26, 2023 Save to shelf
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