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Even if you can be successful without advertising, it seems a bit silly to be against it. If you know that by investing 100000$ in advertising, you can earn another 1000000$ in revenue, why would you not do it? Just because it loses you points in the indie scene?

I used to be all negative about advertising, but I changed my attitude since I realized that nature itself relies heavily on advertising. A beautiful flower is advertising, too. Even a flower has to announce "I am here" with colors and odors. Maybe in some cases a "social recommendation mechanism" is also at work (like the bees who inform other bees about food sources), but without such a mechanism, how are your clients going to discover you?



One example answer is that if your gross margin is anything under 10%, you shouldn't spend $100m in advertising for $1mm in marginal revenue.

Doesn't happen often in software, of course.


I admit you have lost me here - why should one not make that investment?


Let's say your gross margin is 9%.

You spend $100K in advertising. You get an additional $1000K in revenue, on which you make a 9% profit. You bank $90K profit from this.

You're $10K worse off for having done that advertising.


OK - not so used to terms like "gross margin" ;-)


I'm not against advertising.




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