Gurski: Subscription business models best align product incentives with user value
Dmitry Gurski · Dmitry Gurski: From Potato Farm to $200M in Revenue: The Never-Before-Told Story of Flo Health|E1205 · 20VC with Harry Stebbings · Sep 23, 2024 · at 43:36
Dmitry Gurski is the co-founder and CEO of Flo Health. He compares subscription monetization against advertising and single-purchase models for consumer software.
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“This business model, I believe, is the best model to create good product because your incentives are aligned with user, because user pay just when you create long-term value, and it motivates you to create long-term value, because if, for example, you monetize your product, I don't know, by one-time payment, then you would optimize for conversion. If you monetize your product by advertising, probably you would try to Increase engagement as possible, what we see in media. But in case of subscription, you're really optimized for value because your model works just when users stay and continue to pay for years.”
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