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How many of the 2 million users are paying customers? Is dropbox losing money for now because of the 2GB it gives out for free? I believe dropbox will make money but right now it seems that it is still burning money.



Of the two million, half are inactive. Of the rest, most are not close to 2gb or use it lightly, so it´s not that expensive.

Things like LAN-sync will also help driving down costs.

Overall, I think that even if they are still burning money, they could stop doing that and go positive quickly.


2gb of storage costs $.24 a month on S3, and you figure they only average about half full. Call it an even $.50 with data transfer costs, and you've got just one paying customer (at $9.99/month) subsidizing ~15 free users. A 1-in-15 conversion rate seems like a modest goal. They may not be losing any money at all.


I use dropbox and am happy with it. I save files to it every day. I share files using it about once a fortnight and I grab files via the web app about once in 2-3 months.

I'm at 23.1% of 2.5 GB.

I don't think I will upgrade soon unless I start to use two machines regularly.

I would guess less per average free user (maybe as low as $2 per year). I would guess that 1/15 conversion is also a high estimate. But I might convert in a few years time. I imagine that it'll take another year or two before they really know what conversion rates look like.




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