Ask HN: Is HumbleBundle's business model sustainable?

3 pointsjoshmn1 comment

I feel like it may follow the same path as Groupon's. Sooner or later, they'll run out of [new] developers to promote, and everything will just head down hill.

Am I wrong in assuming this?

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I don't really have any idea what HumbleBundle's operating costs are or how much revenue it brings in from the developers...but the main difference between Groupon and Humble Bundle is that Groupon dealt with non-scalable physical quantities: food, wait staff, seating space. Not only were restaurants getting only 25% revenue on something that costs them the same to produce (the ingredients and staff to provide you the food), but such customers were pushing out normal-paying customers.

If a developer is handing over something that he/she can maintain with little change in operating costs, no matter how many customers there are, then the developer isn't being crushed by Humble Bundle's operations. Keep in mind that Groupon's internal financial operations aside, its business model would be fine if the suppliers (the restaurants, and so forth), were eager to participate.

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