Donnie Berkholz

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Understanding the value of users impacted Dropbox’s growth strategy. When they partnered with one of the largest mobile companies to provide photo backup services, the Dropbox team realized that the partnership generated a lot of new users but they were all LVAs. This created substantial costs in supporting the users but not necessarily future revenue as they were unlikely to upgrade. The HVA versus LVA concept helped the Dropbox team understand and prioritize its various efforts.
The Cold Start Problem: How to Start and Scale Network Effects
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