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:

  • 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…..