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function_seven
on Nov 10, 2022
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The Age of PageRank Is Over
I wonder how much the per-search cost is marginal cost vs. amortized fixed costs.
If their paying user base grows by 10x, do the searches drop from 4¢ each to 2¢ each?
Tumblewood
on Nov 10, 2022
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Most of their cost comes from API accesses to other services (e.g., Bing), so unless they can replace those API calls the price cannot go down very much.
Gareth321
on Nov 10, 2022
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API access is negotiated by volume, so as they grow, they can negotiate preferential pricing.
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Search:
If their paying user base grows by 10x, do the searches drop from 4¢ each to 2¢ each?