Founders

There are 3 business models for apps.

1. Free with ads
2. Subscription
3. Transaction fee

The common thread for all three models is the user—a person, business or AI—has money to spend. 

That’s obvious for 2 and 3 since the model involves spending money directly with the app.

But for 1, if your user base doesn’t have money to spend, the ability to monetize via ads will be low.

Working on Farcaster and Warpcast. Longer thoughts at https://dwr.email

If your users have no money to spend, it's models 2,3 that are most impacted, not 1. 

Facebook couldn't get away with charging users the ~$60 ARPUs globally they make, which is why they need an ads model. Particularly in social media, where the expectation of 'free' has been set for a while, subscriptions are never happening at scale.