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The financially most lucrative strategy for software companies is to provide distribution for free and instead monetize users who want to stand out of the crowd with paid signal amplification.
Examples:
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In the book "The Elephant in the Brain" Robin Hanson & Kevin Simler state that:
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Network membership is a powerful signal message. Users pay a membership fee to signal to other members that they are part of the tribe.
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Signaling can be broken down into different components, explained through the act of buying some expensive snickers:
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