Great article on optimal take rates in Internet businesses
Bill Gurley is a partner at Benchmark and an investor and on the board of Uber, OpenTable and Zillow amongst others. He just wrote a fantastic article on the optimal pricing strategy for Internet businesses. He makes a compelling argument that companies should have low rakes to establish themselves as the high volume leader and not leave an opening for competitors.
Read the full article at:
http://abovethecrowd.com/2013/04/18/a-rake-too-far-optimal-platformpricing-strategy/
70% for shutterstock, wow….there has to be some room for disruption there….even charging 35% and allowing for bidding for premium placement of images in search results seems to be a better way to go about it…..