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Fair Pricing

Fair Pricing

511 comments

·February 5, 2025

dirkc

This makes sense, if someone isn't using your service for a month, chances are good that they are going to cancel soon. Maybe they'll keep on paying for another few months, but if they're not using it, they're not getting any value from it.

So rather than getting them to cancel, pause their subscription. You don't have to deal with cancellations, and if/when the user does return, you are one step further than you would be with a new subscription.

Furthermore this generates goodwill, and I'm guessing goodwill has some % that converts to conversions and lower churn.

fnord123

More importantly you can tell investors you have even more accounts than you do and your churn rate is very low.

scott_w

> More importantly you can tell investors you have even more accounts than you do and your churn rate is very low.

I know you're being a little facetious but it is actually a benefit. Many companies have implemented subscription pausing to reduce churn. The reason is pretty straightforward good business: it's easier to reactivate customers who lay dormant for 1 or 2 months than it is to let them churn and have to re-sell the product to them from scratch.

vel0city

I've had places offer to just not bill for a few months while still allowing full access or offer some steep discounts in the workflow for cancelling in attempt to reduce churn.

jgalt212

Fair enough, but as far as your investors are concerned you're changing the definition of churn. I'm sure if they ask, they'll be provided with "pause" metrics, but such data will never see the light of day in any marketing materials.

null

[deleted]

thih9

Plus, you get to stay in touch and advertise via a monthly email: “You didn’t do any searches so we’re giving you next month for free, here are all the cool things you could do:…”.

JimDabell

You can do that, but if they don’t interact with your email either, you may be better off not doing so. You get worse delivery rates if you constantly send email that gets ignored.

Seb-C

AFAIK, Kagi is 100% bootstrapped and do not owe anything to any investor.

abound

Kagi has taken some investment, mostly from its users: https://blog.kagi.com/safe-round

Disclosure: I work at Kagi

OskarS

A huge benefit to companies with subscription services is that people forget they have them and keep paying for Ancestry.com or whatever for months (what? no, of course that never happened to me...) after they've stopped using it. Kagi is voluntarily giving up that benefit. This just seems like a consumer-friendly move to me, not sinister at all.

andai

I somehow ended up with two simultaneous Audible subscriptions in different regions. It seemed like a coin toss which one the website would send me to. I only found out because I canceled one of them, and then still got billed. Support was very understanding and refunded the double-sub period.

simonebrunozzi

> We have implemented this for the simple reason of being kind to our users.

Sometimes the simplest explanation is also the correct one.

boringg

Ans any difference in pricing is made up for it by increasing rates to cover the lost revenue that wasn't automatic. And people are happy they don't pay in non use months but the company still makes the same momey.

eviks

not unless said investors demand better metrics like active user count...

mathw

This is the point where you realise the investors were, like most times, a mistake.

I don't know if Kagi have any investors or not, but I am kind of hoping the subscription model means they don't need them.

comprev

I've seen the opposite of this at a startup once in the streaming music industry. We _knew_ our "free trial for a month" was being abused by 500k+ users because the sign-up flow neither required a valid payment on file or email validation. In fact there was an entire industry built around generating false throw-away accounts.

The company used stats including non-paying users to demonstrate demand for our service was high, even though we knew they would highly likely never spend a cent with us.

lostlogin

Once you are navigating these waters, it might pay to ask for a definition of ‘active’.

ajkjk

more importantly it's kind to the users

(historically not so important to companies in practice, but it sure ought to be)

yreg

If the streaming services did this, I would probably have a lot more of them.

BossingAround

If the streaming services did this, I'd probably have pretty much all of them. Then, instead of paying monthly, you essentially have a tab open with everyone, and you pay for whatever you stream.

Indeed, this would make me way less annoyed at the thousand and one streaming services popping up like mushrooms after a rainy day.

scott_w

I... really like this idea. It's an interesting problem and something that a challenger service could possibly use (assuming they can resolve potential cash flow issues around content licensing). From an incumbents' perspective, it's less desirable since the fact I already have Netflix, Crunchyroll, Amazon Prime, Apple TV makes me less inclined to add Disney+ or a new service to my list of monthly outgoings.

huhtenberg

It's a very slippery path towards per-watch pricing with "rent this episode for just $0.99"... and that will be horrible.

jaza

I make the streaming services work like this already. I have neither the time nor the interest in watching anything on streaming most months. I have all my subscriptions cancelled all the time. When I want to watch something badly enough on service x, I sign in, re-activate, get charged for one month, then immediately cancel the subscription. Then watch the thing. Then not get charged again until I want to watch something else badly enough in another 6 months' time.

kstrauser

I do this when we have visiting relatives who would spend all day watching a particular cable news channel that gets them all riled up. Before they arrive, I subscribe to a different streaming service with a package that doesn’t include that channel and put its icon front and center on our TV. I then immediately cancel it so it doesn’t renew.

Totally worth the $20 or whatever.

criddell

I do something similar and that's why I usually try to subscribe on my phone or iPad. iOS makes it so that I can start or stop a subscription in about 3 seconds. Sometimes it costs a little more because the services have to pay Apple, but for me, it's worth it.

dotancohen

Please tell me that you have at least a Bash script or Selenium workflow for this. It actually sounds like a fun project to abstract and make pluggable. It would probably require maintenance, though.

nthingtohide

Then a particular show becomes a hit. And the company hasn't planned hardware for the spike in traffic because no one was using it before.

guappa

I hear torrent protocol scales rather well.

user568439

Yes a lot of people does this manually. But the services predate on the people that is too busy or lazy to unsubscribe and I'm afraid they are a much larger group.

rqtwteye

Basically you want per stream pricing.

ogrisel

Similarly, for paywalled news/journals.

bandrami

Fifteen years ago people were talking about micropayments per article for news services being just around the corner. What ever happened to that?

WiSaGaN

You are really underestimating how many users just forget they have such unused subscriptions, and how much of subscription based company monthly revenue is those that are not used at all.

verdverm

I'd prefer a pay-as-you-go / per API call / search pricing model... to something that if I use it just once, I pay full price for a month. Same rationale for AI in my IDE, I'm waiting for the pricing models to change

merlinnn

The downside is that price per unit will increase as minimum unit size goes down. You're essentially buying at a "retail" price whereas the monthly bundle is wholesale.

But the tradeoff would be worth it for sparsely used applications.

verdverm

I pay $0.01 per MB on my phone data plan until I reach the unlimited plan value, then everything is free

I don't think you can guarantee that the price will go up. If I look at the API costs today, they do not have a sliding scale

dghlsakjg

There are any number of plugins for all of the popular IDEs/text editors that let you use metered AI usage using an API key.

For VS code compatible plugins checkout Cline/Roo or just search for AI in the extensions.

verdverm

Plugins will never match the possibilities of a deep integration. Those who build or fork VS code want the monthly fee because they make way more per customer

ant6n

I dunno. The thing is, Kagi isn’t really that much better than Google. When they still had a free tier, I tried it every once in a while, and it quickly wastes a lot of searches even while just entering queries, and then the chance to find something better than Google is mediocre. Perhaps a prepaid model might make more sense, especially if it’s designed not to blow through queries quickly and transparent about how many searches were actually done.

Compare to ChatGPT, which is much more expensive, but the value relative to Google is pretty obvious.

JTyQZSnP3cQGa8B

I have the opposite experience: I use Kagi a hundred times a day with always relevant results while the GPTs always hallucinate random crap. I guess it depends on how you search.

evilduck

I don't doubt you but this life experience is so far from my own I struggle to understand what you use that much search volume for. I maybe search for 4-5 things a day (based on my one stint paying for Kagi and their usage reporting and trying to use it everywhere, and this was before AI products were able to search on your behalf) which is what led me to cancel, I was usually not getting the paid plan value from it. A large amount of my searches today are often just fancy autocompletes for specific URLS on already known domains that I probably could have accessed without a search engine at all.

wkat4242

I think the real value is a combination.

Use LLM to sift through search results (including all the crap clickbait) and find the thing you're really looking for.

A bit like perplexity does though I run it locally with OpenWebUI and SearXNG.

scarface_74

Do you pay for ChatGPT with built in web search? I’ve been paying for ChatGPT for two years. I just started using the ChatGPT extension for Chrome for search and it is so much better than Chrome.

frereubu

My experience is completely different - I get much better results from Kagi. And one of the things I really like is the ability to entirely block domains, so for example I never get any Pinterest links cluttering up the results the now. I also love the fact that you can enter a ? at the end of a query and it'll give you an AI-generated summary at the top of the results. That's a great shortcut.

hk__2

> And one of the things I really like is the ability to entirely block domains, so for example I never get any Pinterest links cluttering up the results the now

Note you can do this on Google using the uBlacklist extension [1]. You can select domains but also use patterns to match specific URLs, like `somedomain.com/someprefix/*`.

[1]: https://chromewebstore.google.com/detail/ublacklist/pncfbmia...

andyjohnson0

I've been a paying Kagi user since the beta - and thats because I get good value from it. Out of the box the search results were, and are, much better than Google or Bing. The ability to raise, lower, or block the priority of sites adds to that and gives me a very personalised tool. I'm very happy that it exists.

On the other hand, the fact that we're having this discussion does point to how difficult it is for Kagi to explain its value proposition and differentiate itself from Google.

As for chatgpt - I'd say its functionality relative to google search is obvious, but not it's value.

mathw

I'm finding Kagi gives me relevant results much more readily than Google, where I have to wade through all those sites which take technical content from other sites and repost it for ad revenue. I'm on the lower tier plan and haven't hit the monthly search limit yet... but I'll consider upgrading if I do, because wow it's so much better for me.

It does seem likely though that it's not going to be better for absolutely everyone, other than in terms of having their business model being "give good search results" rather than "give people adverts we can charge advertisers for".

LoganDark

According to my usage statistics, I use Kagi around 20-50 times a day.

    Date (UTC)   AI Tokens  Searches
    Feb 5, 2025  0          64
    Feb 4, 2025  0          43
    Feb 3, 2025  0          19
    Feb 2, 2025  0          24
    Feb 1, 2025  0          19
They don't seem to track any form of history, only the number of searches (since some of their plans have a quota). I pay for unlimited searches, but the stats are still interesting :)

rckclmbr

Similar stats for me. It’s become an invaluable tool, sometimes I’ll use another browser that’s has Google as default and immediately notice how much worse it is — all the ads, irrelevant cards, etc. Kagi is like the way Google was 10 years ago, which is MUCH better… with the benefit of more personalization

m-schuetz

I found it way better simply because you can blacklist garbage SEO'd sites.

layer8

There are also browser extensions like uBlacklist that can be used to do this on Google search results.

angoragoats

> Compare to ChatGPT, which is much more expensive, but the value relative to Google is pretty obvious.

What is the value of ChatGPT relative to Google? It's not obvious to me.

pfix

From kagi.com:

> No ads. No tracking. No compromise. Just deep, powerful search.

So you are not paying for better search but for no tracking and no ads. If you don't care about those, you're not kagi target audience.

Evil_Saint

I straight up get better results than current Google.

ant6n

you can get that on DuckDuckGo. The main problem with Google is that the search is garbage. Kagi wasn't able to convince me that their better within the free searches (I have an account since 2022). Now that I can't try them anymore, they can't ever convince me they're better - so their pricing model perhaps isn't very smart.

lostlogin

I get better results.

I block the shit (a user preference with some good easy options), I up rank my favourites and pin Wikipedia.

I’m happily paying for a family plan.

carlosjobim

Kagi is entirely dependent on giving the best search. Without it they would lose pretty much all customers.

"Privacy minded" customers is not a foundation for a business. They spend all their time complaining and accusing, and then after some time they cancel their subscription because spending $10 per month keeps them awake all night.

Lutger

There are lots of benefits for sure, but you have to weigh them against the users who can't be arsed to cancel their subscription and keep on paying. You'll miss out on those.

RALaBarge

That is what this effort is aimed at: sleezy status quo

robertlagrant

I think this is maybe a bit simplistic. People forgetting to cancel means the price can be lower per-person. It's a little bit like how insurance is priced.

allan_s

Is there a lot of feedback from companies that have switched to similar model ? (how much it improved churn, customer lifetime value etc.)

MarcelOlsz

I'm still waiting for a $150 refund from pieter levels from his crappy ai interior site, didn't log in once.

ajdude

Unfortunately, I will never be able to take advantage of this policy, For the very reason that I have kagi Set as my exclusive search engine on every single device that I own, And there's no way that I could go even a Day, let alone a month, without using this fantastic service.

Keep up the good work guys!

jorvi

Absolutely seconded.

What I also love is Vlad / the Kagi team's fierce neutrality. For example, there have been complaints about including results from certain indexes like Brave and Yandex, or about suicide, or other political / sensitive stuff and Vlad's response is virtually always a shade of "no matter what, we will display the results because we are a search engine foremost".

Oh and they have built-in CSS injection (under Settings > Appearance) which allows you to hide Reddit's crappy pre-translated search results. You could do that via Violentmonkey / Tampermonkey, but that won't apply to devices that don't have it.

You can also rewrite URL results. So AMP to non-AMP and reddit.com to old.reddit.com (Advanced > Redirects).

Meanwhile Google obfuscates even their divs to make blocking certain results (read: ads) more difficult.

Here's the CSS snippet hiding translations:

  /*
  Hide pre-translated webpages.
  "sri-group" is main result, "__srgi"  are sub results.
  You can append `:not(:has(a[href*="tl=en"]))` to allow English translations.
  */
  :is(div.__srgi, div.sri-group._ext_r):has(a[href*="tl="]) {
    display: none !important;
  }*

Gareth321

It is the primary reason I use Kagi. I have become horrified by the widespread use of censorship for political reasons in search engines like Google. I'm not a child. I can make up my own mind.

ajdude

That's a big reason for me too; when I remember when DuckDuckGo blocked "tank Man" a couple years ago, at that point that I considered DDG compromised: https://news.ycombinator.com/item?id=27394925

I get a lot out of their regex redirect for their search results, notably redirecting reddit to old.reddit -- a lifesaver when searching on mobile.

yegg

We never blocked this image and we would have no incentive to either since we’ve been banned in China since 2014. Here’s my statement from back then: https://news.ycombinator.com/item?id=27528324

neoromantique

The problem is not showing stuff from Yandex, the problem is that by paying Kagi you Yandex by proxy and that is an absolute red line for many people.

0x38B

I did not know this about Kagi!

I abhor sites that translate into English based on my IP. In one case (a job site), I blocked the endpoint for their translation service and that was that.

beretguy

> You could do that via Violentmonkey / Tampermonkey, but that won't apply to devices that don't have it.

On iOS there is Modificator which allows to inject CSS and JS:

https://apps.apple.com/app/id1635358022

pietz

It's so crazy to me to hear these super positive opinions. I gave kagi a shot for several months but the results were quite a bit worse than Google or DuckDuckGo. Maybe it's because I live in Germany and kagi doesn't do well with German content but I never understood the hype of kagi.

idamantium

Comparing Kagi to Google on an individual search basis may not be the best way to assess the service. There are a number of features that make it preferable to Google and DuckDuckGo for many of us.

- Ranking results from specific websites has been well referenced in comments here. I love always knowing if something is on archive.org and wikipedia by having those results come to the top. I also rank certain sources of medical information up and down based on reputability, basically overriding their SEO nonsense.

- There are subtle indications for sites that have a high number of ads and trackers, allowing me to opt not to even click on those results.

- AI summaries and answers are not on by default, and simply adding a question mark to the end of my search allows me to get an AI generated answer to my inquiry. I've found these to be very good, but I don't always want them so the control is great.

- Marketing and ecommerce sites seem to be aggressively minimized, which makes the internet feel less like walking through a mall. I only really go to Google if I am shopping for something and want those kinds of results, but this is rare.

All of this makes for a much better experience of the internet overall for me. The reduced cognitive noise is well worth the $10 in my case.

I can't speak to how it preformed in non-English content, so you may be well served by using Google for German content in that case.

otter-in-a-suit

It is worse than Google at some queries, but for me that's a tiny fraction of my total searches. I usually only use Google if I need local results / Google Maps.

What makes Kagi great is that they let you customize results. I've pinned wikipedia, for instance. Google first throws AI slop in your face (with no way of disabling it), followed promptly by (presumably also AI-generated) blog spam, Pinterest links, and other useless garbage that I can't filter.

fwiw, I search in German every once in a while and the results are a lot better than Google (in the US, anyways), since I don't need a VPN to get "good" results and have a quick toggle button for my location built into Kagi.

Also, as a company, they seem great: They are neutral, run as a PBC, are very open and transparent about what they offer and why it costs money ("no BS", if you will), are receptive to feedback and do consumer-friendly stuff like this change.

kstrauser

Kagi doesn’t insert lies into the search results.[0] If that’s all it did better than Google, that alone would make it better.

[0]https://news.ycombinator.com/item?id=42766725

vinhcognito

I honestly can't imagine Kagi being worse than Google. At minimum, Kagi lets me derank and ban domains I don't like.

mystified5016

I haven't seen Pinterest in my search results for years and honestly that alone is worth the price of admission.

If I get a bad result from an ai slop blog, I can permanently ban it. I think that Kagi aggregates this user feedback to globally downrank some sites, but I might be wrong.

hylaride

This is the best feature of kagi. I still use google as a backup (there are a handful of large websites that only allow crawling from the big guys - reddit in particular), but the fact that I can ban experts-exchange, pinterest, and other horseshit is alone worth the price of admission.

Lammy

Same here. I don't often feel the need to shill for paid products but Kagi is so good that I want to do everything I can to make sure it sticks around. It's like air in the sense that it's easy to forget how much I need it until I suddenly don't have it lol

I was sold when it helped me uncover pages I'd never read before about an extremely niche local history topic.

ukd1

Ditto - I've been a paying user since June 22. I've basically used Google a handful of times since, and been disappointed each time. Well worth it.

user3939382

My pitch to friends is that it’s like Google used to be before they started adding all the crap to their results and ignoring your search terms.

Really, it’s even better than that given the full feature set.

CarRamrod

Note to self: Make something good enough that friends will feel the need to make up pitches for their friends to use said thing.

user3939382

Really. In the case of Google it’s even deeper for me. For some reason the ruination of their search engine feels like a betrayal for which Kagi’s proliferation feels like justice.

perdomon

If you're comfortable sharing, what is your job/role, how does Kagi help with that (or is it more of a personal tool), and do you find it more helpful than something like Google + Claude (what I currently use and love)?

oellegaard

I just disabled it today. I have issues searching for local stuff and the other thing - it works poorly with Safari, which is of course not their fault.

blurrybird

How is them not supporting Safari not their fault?

evanriley

Safari has a set list of search engines, you cannot add to or remove from the list.

They currently "support" safari currently by redirecting the searches that go to your chosen search engine to kagi.com with an extension.

hotpocket777

On iOS at least, Apple does not allow custom search engines in Safari and does not list kagi. So the kagi app redirects requests to a different one. Feels gross and dumb.

arrosenberg

FWIW, Kagi makes a browser called Orion that comes with ad blocking packaged in and works exceptionally well.

shortrounddev2

I just wish the unlimited plan was $5 instead of $10

gjm11

I too wish that the things I might spend money on were half the price.

shortrounddev2

I just mean that I've got a lot of subscriptions, and it would be psychologically easier to justify a $5/mo subscription over $10/mo for search.

vincnetas

Just recently i was actually thinking about this pricing approach for netflix, apple arcade or whatever else. Basically i use it so rarely that i could just subscribe when i want to watch anything, and unsubscribe immediately. This will enable subscription till end of billing period (one month). Then when i want o watch anything again then i will repeat again. And now kagi has implemented exactly this but automated from their own side. Im subscribing just to vote with my wallet.

Hopes that netflix or any other provider will implement this are small though. Because it's free money when someone pays for service and does not use it.

tedsanders

5 years ago, Netflix started proactively cancelling inactive accounts. They lose ~$10M/yr from this, but it's the ethical thing to do. (That said, I'd like them to use an even shorter window than 1 year of no activity.)

https://entertainment.ie/on-demand/on-demand-news/netflix-ac...

BossingAround

To be honest, it's insane to me that there's no law about this. If you're a subscription business and you see 0 activity on a paying customer for 60 days, you should be required to ask them whether they want to continue using your service (and no answer should result in service cancellation).

andai

As a counterpoint, I found that Google had deleted all my servers from the GCP trial. I thought it's like AWS where it automatically starts billing you at the end. In fact was pretty sure I was paying for them (Google is definitely sending me strange unmarked invoices for something) but it turns out you have to activate it manually, and when I didn't, they just nuked the whole thing.

layer8

I disagree, because this would force all services to store the time of your last activity, even if they don’t want to track any such data for privacy protection. In addition, it would be prone to accidental cancellations losing you an important account, or the service could just claim you didn’t click the renewal button if for example they want to get rid of unprofitable customers (if you don’t use a service you also don’t generate ad impressions, or similar), which is difficult to disprove after the fact.

How hard is it to check your monthly bank statement and see if there’s anything unexpected? One normally should do that anyway.

hiAndrewQuinn

The immediate second order effect of such a law would be to raise subscription prices on everyone to account for this automatic churn.

I would wager that most people who aren't watching their bills closely enough to notice they haven't actually used their Netflix account in a year aren't very price sensitive. They have money they are, by revealed preferences, willing to throw into the pot, which lowers the service cost for everyone else who does actually use it. If anything one should be the least sympathetic to their plight, from a welfare angle.

The business model you're actually looking for is a utility, or a pay-per-use model. Getting charged per API endpoint hit, or by TCP packets sent, or something. A subscription service is explicitly designed to avoid all that, because our brains like nice round predicable numbers. Sophisticated users everywhere use this model, but most of us have better things to be sophisticated all the time.

carlosjobim

If something is to be considered insane, it is to demand a law for this. Mind your business – used to be written on the currency. If I buy a chicken and leave it in the fridge without eating it, should I also demand my money back from the supermarket?

beAbU

Not just free money. I'm pretty sure the lions' share of any streaming service's income is from users that are subscribed but don't consume everything for that month. Their business model relies on this.

aimazon

I think this is a vast overestimation. The majority of people notice every payment they make every month, a Netflix subscription is a choice that they would not continue to make if they were not using Netflix. Those of us who can afford to pay Netflix whether we watch it or not are the minority of wealthy people. I think you would be surprised to learn how many normal people juggle different subscriptions by cancelling/subscribing each month.

jaza

I have personally met people who, like me, really don't have cash to splash; but who, unlike me, and to my surprise, have literally told me "I pay for all the streaming services every month, whether I use them or not, there's no way I could be bothered to cancel/re-subscribe". So, from my limited anecdotal experience at least, no, it's not a vast overestimation, and in fact it's probably often not about how wealthy people are either - it's about how many people out there are willing to pay for the privilege of set and forget, rather than having to think about one more thing on a regular basis.

hnlmorg

I think both statements are somewhat true. And we can look to COVID to see some evidence of this because when everyone was suddenly home and wanting to consume TV, Netflix had to lower the bit rate on even their premium tier to keep up with demand.

If Netflix wasn’t relying on a degree of inactivity with in their infrastructure then they wouldn’t have needed to lower the bit rates.

It makes sense, when you think about it. Over provisioning is a common practice when dealing with expensive finite resources. For example ISPs have been doing this for decades, offering households higher individual bandwidth than is available if every household within a local radius was to fully max out their throughput. VMWare also offers this to allow individual VM to consume more RAM than the total available on the host.

The key is not to over provision so much that it becomes noticeable under “normal spikes” — and I think we can all agree that COVID was anything but normal.

larusso

Isn‘t this the classic gym subscription example? How many people have a subscription and actually don‘t use it. There is an episode of Friends about that.

About the fair pricing: Would love to have this also for my car lease ;) But more on a weekly bases.

pcthrowaway

Gyms get you by making memberships cheap and easy, and cancellations incredibly difficult.

The flip side of that is that only a small fraction of their members could actively use their memberships or they wouldn't have enough space. The active members get their membership effectively subsidized by people who don't use their memberships.

Apparently up to 50% of a gym's sign-ups happen in the month of January due to new years resolutions, and January/February are the busiest months as a result, though the majority keep their membership even after their resolve to go tapers off.

dgoldstein0

Gym memberships are also a thing people think they should have more than they actually desire to use them. So many people want to be healthy and get in shape, but aren't committed to actually doing the work. So when it comes time to think about cancelling plenty of people keep the gym membership because they think theyshould use it but then don't make the time.

Whereas Netflix and other streaming? It's so easy to just stay in and binge watch. The logical thing to do is cancel when you aren't using it to avoid paying year round, but they bank on the combination of laziness (takes effort to cancel) and ease of use - if you watch even just once or twice a month it starts seeming worthwhile.

And I'd bet most users still make them money. There's a huge fixed cost to setting up a giant content streaming service like Netflix, and to acquiring their content catalog, but they've hyper optimized the distribution so I'd expect all but the heaviest users make them money. And with ad supported plans, watching more would mean they get to serve more ads and make even more money.

hnlmorg

> Gyms get you by making memberships cheap and easy, and cancellations incredibly difficult.

I think that depends on your country. I’ve never had an issue cancelling my gym membership.

vasco

I'd say about a good 25% at least of the global SaaS revenue is dormant "gym" accounts by now.

quser1

that's called car rentals :)

BossingAround

With the advent of various car renting apps, I was so excited about not owning a car, and basically using just-in-time renting option. Turns out, at least in my part of the world ([0]), that it's such a PITA.

When you plan ahead, it's manageable. Sometimes, a car for renting is not available long term because people plan for the same time (e.g. holidays) and the provider doesn't have big enough car fleet to cover these peaks.

When you have an unexpected trip though, e.g. suddenly needing to go to Ikea, a spur-of-the-moment trip, etc., that's when this all falls apart. In my town, this was then 40:60, favoring no cars being available.

In the end, I just bought a car. 5 days out of the week, it sits on the street and depreciates in value. We take it on trips for the weekends, though, and have been absolutely loving it.

[0] central Europe, don't really need a car for daily life, but it's nice to have sometimes

larusso

Yes but I want the car in front of my home :) I understand the concept that I pay also for the luxury to drive around whenever I want etc. It was more a musing ala eat the cake and have it :)

I see lots of short rentals that just idle on the street for days sometimes. Here the provider pays of course (and I assume it’s not in their interest).

idle_zealot

> Hopes that netflix or any other provider will implement this are small though. Because it's free money when someone pays for service and does not use it.

Right. This is the sort of pro-consumer practice that is obviously morally right, but will not be widely adopted without consumer protection laws. Outside of small, niche businesses like Kagi, there is no pressure to treat customers with respect.

robertlagrant

See the sibling comment which states Netflix does do this, and without consumer protection laws.

InfiniteTitan

Netflix cancels after billing you for two years. Kagi doesn’t bill you if you don’t use the product that month. Do you understand those are not the same?

paranoidrobot

Slack does, or did, do this. I believe Trello, too.

I found out about this because I noticed our Slack bill was quite a lot lower over some Christmas/January period. It was because so many folks were away, and so they didn't charge us for seats that were inactive for > 30 days.

robertlagrant

Yes, lots of businesses charge based on MAU. You can pre-pay for a certain MAU, which will get you a lower price per user, but at the expense of paying even if they aren't used. Which is fair enough.

mihaaly

We canceled Netflix some time ago. Being too busy, spending our precious free time on something better than browsing through the not that brilliant quality collection, trying to find something we would not regret wasting time on. Probably 5% or less is for us in there? For the 'staring out of our head being exchausted for any meaningful thing including sleeping' times there is Amazon Prime, which we have for deliveries anyway. Once in every 2 months or so? (our pure TV is neglected, being a black rectange decoration mostly)

Kagi in the other hand is useful.

Probably that's why Netflix has to play hardball with their customers, chasing their money hard and strong, pushing them around, not Kagi? : )

omega3

I do this for all services now, it requires more active management on my part, but the mindful spending is worth it - both for the wallet and as a market signal. I used it most recently for Claude which has had scaling issues, diminished quality, defaults to concise responses.

kmacdough

Kagi does keep a running subscription, so you are only getting until the end of that subscription month. But, in context and reality, it is pretty good.

percevalve

I haven’t seen this mentioned in the conversation yet, so I’ll bring it up here.

A research paper from a few years ago introduced the concept of “customer inertia.” It found that users tend to overestimate their difficulty in unsubscribing from a service. In other words, when a subscription includes auto-renewal (or a similar feature), a significant portion of potential users will choose not to subscribe because they fear they won’t be able to cancel if they stop using the service.

According to the study, this affected about 30% of users. So, could offering something like fair pricing reduce this barrier and increase new subscriptions by 30%? https://bfi.uchicago.edu/insight/finding/sophisticated-consu...

nosioptar

As someone who often doesn't subscribe because I don't want to get NYTed into having to pick up the phone to cancel, no this approach to pricing wouldn't change things for me.

What does work for me is when the service's docs have a very clear page on how to cancel the service without having to talk to someone.

benrutter

That's really interesting as a concept. As one random person on the internet (not a sample) I definitely avoid services that look like they'll be a pain to unsubscribe from, and will be much more likely to try out a free trial of something if it looks like an easy one to cancel. Super interesting that some people are trying to factor in that things into wider-scale enomics.

percevalve

Same here, hence why I remembered it (even if it is from 2022), it did resonate so much with my own experience.

klabb3

Yeah such are race to the bottoms. Because some assholes did turn cancelation into a Kafkaesque nightmare, now people don't want to subscribe in the first place. Who could have seen that coming? Genius MBA logic. And now honest businesses are in the shitter for it.

wongarsu

Seeing how much revenue subscription services make from inactive customers (and how much I have paid over my lifetime to services I no longer used) people don't overestimate this at all. If anything, users still underestimate it.

The disconnect between the researchers and people's actual estimations is that "cancelling a service" is much harder than the couple button clicks it usually takes. You have a structural problem: If you don't use a service, you don't spend a lot of time thinking about it. It's easy to cancel something if you make a conscious decision to stop using something. But if it just gradually falls out of use, your only reminder that you should cancel it are your bank statements or the occasional payment reminder email (that some services avoid sending for exactly this reason).

percevalve

Basically that is what this study went into great length to measure, at least the way I understand it.

efitz

Kudos for adopting a user friendly billing policy.

I would love to see the FTC mandate a policy that prohibits automatic renewal billing if the service hasn’t been used for some time.

camhart

You're assuming there is no cost to the business when the service isn't actively being used. Thats not always the case.

globular-toast

Well they specifically said "renewal" so the business just wouldn't renew them and therefore not cost them any more money.

Obviously some services like insurance or storage don't work like this, though. I don't want to use them, but I want them to be there if I do need them.

mcintyre1994

Could you just give the option for them to delete the account if they want to at the same time? I assume most wouldn’t want to, but if it costs them money to keep inactive accounts then they can choose to. Out of interest what sort of services were you thinking of there?

Maken

That seems unlikely, since soon there will be no FTC policies at all.

fastball

[flagged]

grayhatter

What a needlessly toxic take.

> People who can't wake up without an alarm, should be late for things.

> People who are busy, clearly need to be punished!

> Punishment is the best way to change behavior, it's why I always hit my dog!

> Humans are better at remembering and scheduling things than computers are, obviously we should require humans do these types of things even when it would be trivial to do so programmatically.

> I can punish someone, so I should be allowed to!

Or... you could not be a dick, and go, huh, that would be a very nice thing to do to help out your fellow human! I'm glad someone else is willing to help someone else out just because it's the nice thing to do!

> Giving people a free pass for not paying attention to their own finances is exactly how you end up with people that are even worse at managing their finances than before.

[citation needed]... because I'm pretty sure you just made that up, and it's not true at all.

fastball

What in the world are you going on about? Continuing to pay for something that you agreed to pay for and didn't cancel is not a "punishment". If it is, that is the silliest definition of punishment I've ever heard. It is certainly not anywhere close to "hitting my dog". So I fixed it for you:

> People who don't cancel subscriptions will continue to pay for them.

> People who can't wake up without an alarm will be late for things.

Neither of those things is an injustice.

Paying for things you agreed to pay for is not a punishment. Punishment is fining companies that do not proactively cancel subscriptions on your behalf. You can set a reminder to cancel something (on a computer). Any argument you can make for a computer being used can apply just as well to the consumer as to the business.

It is very well known in basically every sphere of human endeavor that the less you do something, the less competent you will be at that thing. This doesn't need a citation – this is how humans work.

nicce

> > Giving people a free pass for not paying attention to their own finances is exactly how you end up with people that are even worse at managing their finances than before. [citation needed]... because I'm pretty sure you just made that up, and it's not true at all.

I am not sure what to think about this topic in a whole, but that argument isn’t much different than why we teach responsibility for kids. There might be some truth in it.

maccard

The problem is that there are still huge amounts of services with awful dark patterns out there. There’s an instagram gym clothing brand called Fabletics which is £55/month for their vip tier. They auto subscribe you with a purchase (and when I say buried in the fine print, I really do mean _buried_ in the fine print). To cancel, you have to do it between the 1st and the 4th of the month, and it’s a multi page form where every page is a confirmation that is designed to look like you have unsubscribed . When services are still doing this there needs to be some rules.

Kwpolska

This is not a dark pattern, this is illegal. Even the US has introduced click-to-cancel recently.

fastball

I am 100% against dark patterns and yes, my comment assumed that it is very easy for the individual to cancel the service themselves.

I also think Kagi is great for doing this.

Punishing companies because they don't do this is another thing entirely, which is what the comment I was replying to suggested.

larusso

Interesting take. I kinda take this a bit personal because I forgot multiple times about some subscriptions I had and I think I have my finances well under order.

I think there is a major difference between spending more then you have for example or getting into the subscription trap of: paid annually but advertised with monthly rates, paid monthly but is part of a separate subscription: Amazon channels, Apple TV channels etc. I subscribed to a TV service for the Eurocup which was something like 5€ per month. I only realized this after half a year because they send me an email suddenly with the newest shows I can watch. All the time this payment flew under the radar.

If your understanding of managing finances is monthly book keeping down to the penny then yes I might have issues with my finances.

bayindirh

People can leave their computers behind for vacations and try to not use their devices during said vacations or small sabbaticals, you know.

Also, not all people use Kagi for their "search engine" per se. It also has other AI related services, so they might not need a GPU powered parrot every day, sometimes for longer periods.

fastball

The comment I was replying to suggested an FTC "mandate".

I think its great if Kagi proactively chooses to do this themselves.

I think it bad if you force companies to do this.

jychang

Who cares anymore in 2025? Maybe in 1999, but now in about 1 year we'll have agents that can manage subscriptions automatically.

Actually, I'm pretty sure OpenAI Operator can already do that, but I don't pay $200 for Pro so I can't confirm.

callc

In about 1 year can agents automatically bring back the pre-LLM / pre-AI internet? Thanks :)

- my agent

ranger_danger

how would that be enforced?

scott_w

European countries like the UK have consumer protection laws and they get enforced all the time. There’s a few ways:

- Act on customer complaints (or consumer protection organisation complaints)

- Proactively investigate and check

- Require businesses to submit proof that they follow the regulations e.g. test results

I’m sure there’s other ways and you can do one or more of these things to ensure compliance. It’s really context dependent on which methods one would use.

larusso

Also helps to scare with huge fines set up for the likes of Google and Facebook which any normal company can‘t pay in their wildest dreams.

yellowapple

I'm thinking of the time I had a membership with Anytime Fitness. Entry into the gym entailed scanning a key fob, so it was readily possible to have a record of when I entered, and (relevantly) when I didn't.

This was an exact point I raised when they attempted to charge an expired card twice and then sent my bill to collections. The gym staff admitted to remembering that I attempted to cancel because I was moving to a place with no Anytime Fitness locations; they refused to let me cancel my contract early without me showing them my new lease, which I didn't have yet and wouldn't have until after I had already left my old city. They also surely had electronic records confirming that I had not set foot in an Anytime Fitness since that time - or else, no ability to prove that I had set foot in one since that time.

That they had the nerve to not only keep charging my card but send the progeny of their multiple degrees of utter failure to collections is exactly why they never got a dime out of me. If anything they owed me money, not the other way around. That hundred or so dollars has since rolled off my credit report, but until then I wore that delinquency as a badge of honor. That shithole of a company can shove it.

...anyway, that'd be the way to enforce it: by checking access logs to see if the customer actually used the service. Don't have access logs? Well then, you know the saying: customer's always right.

TheSpiceIsLife

You’re in Australia?

If anything like that happens again, or something like you purchase a second hand car but weren’t supplied the signed registration paper / no receipt… need a day off work due to illness but don’t want to pay to see a doctor / telehealth etc etc

You can statutory declaration, a written statement you declare to be true, many professionals can witness them, teachers, dentists, vets, engineers, mostly anyone who’s practice requires they be a member of a professional organisation.

If you were to serve such to Anytime Fitness, either before you intended to leave serviced area, or any time prior to them selling the dept to recovery, they are obliged to cancel from the date they were served or the date you state in the declaration.

A Process Server can hand them the declaration, or you can in person, or registered mail to head office.

This also tends to work for parking ticket fines issued by private car park operators whereby you make a reasonable offer for the time you were parked there—eg ten minutes prior to the first ticket, so one whole hour of parking as a reasonable counter offer to their punitive ticketed fee—though these all tend to be electronically gated these days so mostly moot.

I tend to do a higher than average level of minor civil disobedience type behaviour, and tend to find it quite enjoyable arguing my point knowing I’ll typically win the argument.

Yours truely, Mr Middle Age Curmudgeon

troupo

> they refused to let me cancel my contract early without me showing them my new lease

They problem is the cancellation process, not "they shouldn't charge me if I'm not using it".

TheSpiceIsLife

My prepaid mobile service is configured to auto-renew. The service provider messages me two times prior to renewal, something like three days before and the day before. The SMS contain details of how to change my payment settings, which is also the same place you remove your payment card / bank account details.

We also have legislation that provides warranty on electronic devices and household appliances, everything really, except things like cars and boats etc etc, for the reasonable lifetime of the product. So a cheap washing machine, three to five years would be reasonable, an expensive unit? I want that to last six to eight years. An expensive fridge, at least ten.

prawn

Especially if there was an expectation that someone might forget to use a service and then expect all their data to have remained in storage for them to use when they returned?

moooo99

Fines

manmal

Ok that’s it, I‘ll renew my account now. I‘ve been using it two years ago and was pretty happy, until a problem in my payment processor failed the payments to Kagi. I thought I wouldn’t miss it, but lately I haven’t been happy with DDG and been reaching more for Google, or should I say suffering Google?

I also thought for a while that things like ChatGPT internet search or perplexity would replace DDG and Kagi, but, so far, I just want slop free sources to back up the slop I generated purposely in R1.

fhd2

Exactly! For a lot of work, I use Claude as my first source, then typically I verify what I got out of it with a search engine. If the search engine also starts to hallucinate (starting to see that on Google if I'm not crazy), I have zero use for it. I want results that match my search query, period.

pbronez

Kagi also has solid AI features.

Their Quick Answer feature does an AI summary of your query results. By default it shows up automatically when it has high confidence. You can disable this in settings or force it to show up by adding "?" to your query.

https://help.kagi.com/kagi/ai/quick-answer.html

If you want to jump into an AI chat session, you can add bangs to your queries. "!expert" launches a top of the line research agent and "!code" is good and software development. Both of these use the underlying search engine to get current facts.

Kagi even maintains their own LLM benchmark to monitor how well different models perform. They occasionally swap out default models to keep performance SOTA. You can specify a specific model if you want.

https://help.kagi.com/kagi/ai/llm-benchmark.html

fhd2

OK you got me, gptel supports it, so I signed up :P Search result quality is awesome so far, gonna play around with their LLM stuff.

pseudocomposer

This is a nice way to convince people to dip into the Kagi ecosystem. I use Kagi full-time, by default in all my browsers and love it! So this won’t save me a dime (which is still totally cool). It would be nice if they implemented it (or some metered pricing) for the extra-cost AI/LLM features, though (since I pay for them but rarely, if ever, use them).

I also really like this model for subscription services in general. It would be nice to, say, not be billed by Netflix (though really, I’m looking at Paramount+ or Peacock) for months when you don’t use the service. It’s the kind of thing that wouldn’t be hard for companies to implement, and could potentially be regulated into existence everywhere by bodies like the EU or the CA state government.

nonethewiser

Its good and they deserve credit for it. Let me be clear on that.

Now, wouldnt it be even better to implement usage based pricing with a maximum that's equal to the current subscription?

I dont know the Kagi details. Say you pay 10/month and each search is $0.02. You pay max(search_count * 0.02, 10).

I guess the logic is much simpler for their current system. It's 10/month, period. Then if you didnt search anything you get a refund. Instead of tracking and calculating usage.

However, usage pricing should be more enticing for casual users. With the statement refund for 0 use, there is now an incentive for infrequent users to NOT to use the product.

pseudocomposer

I think metered pricing makes sense for a service that's $10/mo (which the base Kagi w/ AI features is).

However, Kagi search unlimited is $5/mo. And, especially because of the whole "payment providers taking their cut" thing, I'd argue for services that are $5/mo or under, metered pricing doesn't really make sense.

Finally, I'd argue that this approach has other advantages over metering, even for higher-cost services:

* It's easier for devs to implement. Just one search needs to be recorded a month for an audit trail, rather than all search history.

* Keeping a search history for users is not needed at all, really (or, again, at most, one search per month). It's much better for user privacy.

* Most countries/states would have much more luck passing legislation forcing companies to implement this than metering, as well as enforcing it.

ilrwbwrkhv

Another win for Kagi. Companies like Kagi, Valve win by just being nice. Can't stop winning.

denkmoon

That's great, but I can't even imagine "forgetting" to use Kagi. Completely indispensable.

vincnetas

Could you share what you find in kagi indispensable? Just subscribed, and looking around.

JumpCrisscross

> Could you share what you find in kagi indispensable?

The academic lens is like Google Scholar, but better. The papers it surfaces are simply higher quality.

Otherwise, append your query with a question mark. The baby AI will do what Google's tries to do, except with a little more skill and better citations.

Most broadly, however, search. It's kind of wild but I forgot that searching the internet used to be fun. Kagi made it fun again.

greatgib

For me, it is not even any particular feature, but just doing a search and getting straight and instantly the results that I need, without crap.

Also I guess part of this is probably the option I used to give higher priority to some websites like python org.

When I subscribed with Kagi, I was so totally pissed off and stressed by using Google where you will now have crap and unrelated ad links everywhere on the page. And in addition often first link that are garbage Copycat of principal websites. For example, for python, when looking for a module documentation, the official doc is the best but there would be hundreds of ad filled shitty pages that would appear first.

lolc

Not having to think when I search is the selling point.

bearjaws

Remember how 10 years ago you would Google something and it would just give you the result you needed in the first 3 results? Yeah, kagi does that.

lostlogin

In no particular order: Pinning results. Blocking Pinterest, the top few results aren’t spam. They are interesting.

burkaman

No ads, no forced "AI summary", doesn't sell my data to anyone. There are many other quality of life features, I don't consider any of them personally indispensable except for the ability to permanently remove a site from results, which I have used a few times.

I haven't used Google in many years so I can't directly compare the search quality, but Kagi is good enough that I've never had any reason to try something else since I've started using it.

Edit: I also use the !w Wikipedia bang constantly, I forgot that was a Kagi feature and not my browser. Obviously Kagi is not the only search engine with this feature though.

sodapopcan

Up-ranking, down-ranking, and straight up blocking sites is a big one for me. No more scrolling past w3schools or geeksforgeeks for this guy!

Also, it's built in that sites with a ton of ads are down-ranked.

tstrimple

I don't use Kagi anymore but the main thing I miss is the absence of "Popular products" which is completely useless and comes up far too often when using Google to find retail products and black listing websites from the search results. Outside of that, the results were largely similar.

denkmoon

Quality search results while not making myself a google user. De-googling is quite important to me. Besides that, basically what everyone else said; it upranks or downranks domains based on my settings, the claude AI answers are pretty good, and the no bullshit interface.

optionalsquid

It's also hard to forget once you've set it as your default browser. So I imagine that it'll mostly benefit people on the limited (300 search/month) tier, where you might want to ration your searches

AdamN

It's funny, I don't even look at the Kagi logo anymore. I just see search results and occasionally notice that I"m using Kagi because I see the token in the request url.

moffkalast

Let's be real, this lets them have a free PR win without having to actually give up anything at all.

llm_trw

The one area that'd make kagi thousands of dollars from me and the apps I use would be to lower their APO searches to a sane price.

Currently they charge 2.5c for an API search. This is between 1,000 to 1,000,000 times more than other companies in the space charge.

AI systems need to do dozens of searches for every question to get good results and kagi's results are really good. But not 1,000,000 times better than the competition.

freediver

Hi, the API is still work in progress. Expect many more features and lower price once we officialy launch it (next few months)

freehorse

I love kagi, but indeed I am a bit concerned of long term usefulness/sustainability of their model if they do not manage to reduce their search costs.

llm_trw

We are rapidly approaching the point where using an embedding model to run over the whole internet will be the best way to rank search results.

At that point all the special sauce Google et al have spend decades mastering will be worth as much as expertise in analogue computers is today.

nektro

maybe don't search with an llm

annexrichmond

Kagi is awesome, but the thought of having a limit led me to use it less and less and I eventually unsubscribed.

_kidlike

The 10$ plan doesn't have a limit anymore!

zaptrem

This is how I think about unlimited data plans haha. I think a rate limit is easier to stomach (e.g., X requests per hour where they bank up to one hour so you can burst up to 2X for especially crazy hours or something).

annexrichmond

yeah that's interesting. $5 for 35/day could be better as well

throwaway290

I noticed if I need something hard to find I have to do a dozen+ different queries (and sometimes not find anything because it doesn't exist). Both with Kagi and Google the result is the same but with Kagi I also rack up a bunch per one attempt to find something. And if I need something easy to find but lazy both Google and Kagi reliably show the first correct result.

So it's either unlimited or nothing. But since I know Google's search operators well I don't have trouble finding things if they exist so $10 per month is hard to justify. Plus, you're anonymous with Google but you're not anonymous with Kagi since you pay them.

But Kagi can be good for tech illiterate relative you want to shield from sus sites.

TheCraiggers

> Plus, you're anonymous with Google but you're not anonymous with Kagi since you pay them.

The idea that you're anonymous with Google is laughable. The amount of data they aggregate is well known. Their entire business model is to know who you are.

throwaway290

they can try a shadow profile but at least it's not tied to me;)

> Their entire business model is to know who you are.

this is literally the opposite of reality

null

[deleted]

s_dev

I will sign back up for a paid service when funding Russian search engine Yandex is dropped. Many like to forget there is a war.

Gareth321

We all have our red lines to draw. I personally use Kagi because it doesn't censor results from politically contentious sources like Yandex. Quite the opposite.

cuu508

The problem, for me, is not censoring/not censoring sources like Yandex. The problem is them sharing profit with Yandex.

gspr

Exactly. I've used the free tier a bit. I'd say it's never worse than Google, and sometimes significantly better. I'll happily pay a bit for this. But no way am I paying a single cent for anything where a significant part of what makes it work is Russian.

Glory and liberty for Ukraine!

id00

That's definitely an interesting hill to die on. I can say as a paid Kagi user and regular donator to ВСУ

s_dev

I'm not dying on any hill. I will sign back up for a €20 euro a month niche search engine when either the war ends or Kagi remove Yandex from their funding list.

vindex10

It's ЗСУ (Збройні Сили України) in Ukrainian

https://uk.wikipedia.org/wiki/%D0%97%D0%B1%D1%80%D0%BE%D0%B9...

tokai

Ah I was just looking into trying a subscription. Can't see how supporting genocide financially is impartiality.

piyuv

Do you use any American tech companies? There’s another war, FYI

ranguna

Sources?

cuu508

mbix77

Calling the invasion of Ukraine and the killing of hundreds of thousands people, targeting kindergartens, hospitals, normal civilians, destabilizing an entire continent --> "politics".

"any search source we consider using goes through rigorous evaluation process that considers: result quality, API availability, economic viability, result latency, legal terms, privacy terms, and technical feasibility. the moment 'politics' is a part of factors being considered for search results, is the moment I stop working on a search engine."

yellowapple

Probably won't affect me much, since I've happily been a daily user since learning about them at Handmade Seattle last year, but I'm glad they're going this route nonetheless.

z64

Always happy to hear people finding us through HMS! It's a fantastic community, and the Handmade ethos resonates deeply with a lot of us on the team.

Thank you for your support.

- Zac