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RE: Steemit.com is running at a loss! Start generating revenue or get out, you are strangling other applications from succeeding.

in #exyle6 years ago (edited)

Ahh okay @s3rg3 yeah, I think that is a good idea... but I think @steemit should be run as a business that must turn a profit first, otherwise the other Dapps will be competing with a website that is operating at a loss a.k.a. Steemit and have to cover the costs of nodes at the same time.

Operating at a loss is actually a tactic used in business to put another company out of business.

Example:
Uber and Grab a Cab were doing it against each other for a few years in the Philippines until Uber folded and sold their stake to Grab.

Once the merger was finished, Grab increased their driver rates and started operating for a profit.

This is essentially what Steemit is doing to other Dapps but unintentionally and is one of the things @exyle mentioned.


Another good thing to mention is that Steemit can start using advertisements but other Dapps can refrain from using ads to acquire more market share from Steemit.com.

Because of that I think we will always be able to find Steem Dapps that don't use traditional advertisements.