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No, that means that you should adapt your business model to market reality.

It's not ideal, but those are the rules of the game. Optimize with these constraints, don't hope that doing or charging what others do will work. It's pretty clear to me that this product is worth more than a buck, and I don't even know what it does.

There's nothing to feel sorry over in this case. These guys were blessed (non-denominationally, of course) with a product that people want, and aren't able to capture the value in it. That's what running a business is all about. The product is only one (albeit large) component.

And this isn't irreparable. If too many customers breaks you, you're in the wrong business.

A lot of times that will mean not surviving in this case. It's rare that people will pay much for an app. Most apps are free just so they can get more downloads as it is.

No.. that's an artificial scarcity for resources your business needs.. not a scarcity for a product people will want to pay for. So there's nothing to thank.