It attracts startup businesses, most of which will fail, but some of which might turn into profitable and paying customers later on. A big winner there can easily pay for all the lost ones - esp. since most startups will probably fail very early, not using anywhere close to the 1 million.
Yes, it's a loss leader. However, if they have the cash to support it for a time they might tie some very profitable businesses to their infrastructure.
Comments
It attracts startup businesses, most of which will fail, but some of which might turn into profitable and paying customers later on. A big winner there can easily pay for all the lost ones - esp. since most startups will probably fail very early, not using anywhere close to the 1 million.
Yes, it's a loss leader. However, if they have the cash to support it for a time they might tie some very profitable businesses to their infrastructure.