That's enough to be (apparently) profitable. It doesn't matter if most people don't pay for search as long as enough people do that paid search can exist.
It's more like 0.005%-0.02% of queries and like 0.001% of users depending on what statistics for Google you go by, but of course still very insignificant.
Ah yes, the mystical 0.0073 units of people paying for search, assuming every person searches.
Over a year ago, Kagi hit 20k paying members. This puts monthly ARR between $200k and $500k ($10 to $25/head), roughly. That's 0.000273% of all people -- quite a jump!
Someone in an infosec podcast recently summed up the whole situation far better than I've been able to:
The vast majority of people won't pay for privacy.
Some people will pay for search. Some people will pay for content. It's really not many, though. Can you imagine if effectively everything on the internet was paywalled? I sure as hell don't know what the solution is, but we wouldn't've gotten to this spot right now, with all of the good and the bad of the internet, if the vast majority of sites and services on the internet charged for use.
(My best guess is that we can have the good that we have now with ads that aren't individually targeted. I literally have no guesses other than that.)
I have loved Kagi's "small web" where I find interesting items, almost like stumbleupon. It reminded me that not every site on the internet is optimizing for eyeballs.
