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How to Price Your Web Application
thinkvitamin.com — In the world of free, pricing isn ’t given much attention. But if you’re looking for a real, sustainable business, it’s unavoidable. Paul Farnell’s gone through it all with his app Litmus and breaks it down for you here.
DariusMonsef- 757 diggs
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- bluefaced01, on 10/10/2007, -6/+13Free is a good price.
- phjr, on 10/10/2007, -2/+5Not if you want to earn on the service.
But yes, when I want to use it, free is good.- chumpsucker, on 10/10/2007, -7/+2Money can be made in ways other than restricting access to information or a tool until someone has paid.
- fkr3, on 10/10/2007, -1/+10Just because you don't want to pay doesn't mean paying is not a valid and the most sustainable business model. Especially if there's a lot of resources or overhead in providing the service.
Alternative business models are generally crap. Paid support can and will be replaced by forums elsewhere, donations barely sustain charities doing good things for the world let alone businesses trying to cut a profit, advertising is blocked by a lot of people who are all too happy to tell others how to put another nail in that business model's coffin, affiliate arrangements with 3rd party services just don't apply to a lot of businesses and not everything comes with a product line to sell alongside it. - chumpsucker, on 10/10/2007, -3/+1Then how in the frozen hell do open source "companies" survive. They are, in fact, using "alternative business models" and believe it or not consulting dollars support a lot of open source project development. Producers are always compensated, the world doesn't conform to the traditional "business model" so what happens? Business change and monetize their efforts in other ways.
- fkr3, on 10/10/2007, -0/+3The reason most open source companies survive is because of corporate sponsorship and/or support contracts for corporate environments. With web applications sponsorship is out - corporations would rather buy or clone the service. Paying $x a month to use a site is the same as paying $x a month for support with the exception that it's mandatory.
- sacherjj, on 10/10/2007, -0/+2From chumpsucker, I'm not sure if you are a chump or a sucker. If you are trying to make a living on software, you have to charge for it or have corporate sponsorship (i.e. it is a loss leader for other income.) Most people won't pay out of the goodness of their heart if all you have is a tip jar.
- fkr3, on 10/10/2007, -1/+10Just because you don't want to pay doesn't mean paying is not a valid and the most sustainable business model. Especially if there's a lot of resources or overhead in providing the service.
- chumpsucker, on 10/10/2007, -7/+2Money can be made in ways other than restricting access to information or a tool until someone has paid.
- Seraphi, on 10/10/2007, -0/+7Why are people insistent upon "Free" being the ultimate way to go with pricing a service or product? Have none of you ever worked in a business before? I can just imagine going into a supermarket, picking up a Salmon and walking out without paying because you only have to pay for the optional extras such as salt, pepper and lemon. :p
- CSharpSauce, on 10/10/2007, -0/+0hey, maybe the salt, pepper and lemon companies can put little advertisments on the salmon to make it free :) and their products can have credit card advertisements on them so they're free...
- adolfojp, on 10/10/2007, -0/+2Advertisements for what? For another product that is also free but has advertisements on it?
- CSharpSauce, on 10/10/2007, -0/+0hey, maybe the salt, pepper and lemon companies can put little advertisments on the salmon to make it free :) and their products can have credit card advertisements on them so they're free...
- phjr, on 10/10/2007, -2/+5Not if you want to earn on the service.
- Sayjumner, on 10/10/2007, -6/+1I'm a Fan of free to! I like the idea of free and customizable options for a cost.
- hiPpymIck, on 10/10/2007, -1/+2isnt that the model..
free to all - builds goodwill/familiarity
support/pro versions/luxury extras - paid for so they can make a living
if youve got something thats good.. ppl will want it.. and some of them will pay for extras
i dont like to say it but.. is the problem maybe you look at the number of free users and start fantasizing
about how much more money you would get if you could make them pay.
.ie that old vice: simple greed - donkeySays, on 10/10/2007, -0/+3Hey work at my startup for free.
- hiPpymIck, on 10/10/2007, -1/+2isnt that the model..
- elvisjulep, on 10/10/2007, -2/+21Finally a useful and informational article on Digg!
Dugg for going against the "Hate Bush, Love Apple, Ron Paul/Dennis Kucinich is being suppressed, BioShock R00L3Z" grain.- freakygeeky, on 10/10/2007, -9/+1And you've been dugg down for being an *****.
- michael1406, on 10/10/2007, -0/+3...And then dugg back up again.
- hiPpymIck, on 10/10/2007, -0/+2for being..
- c0ldfusi0n, on 10/10/2007, -0/+2realistic.
- michael1406, on 10/10/2007, -0/+3...And then dugg back up again.
- freakygeeky, on 10/10/2007, -9/+1And you've been dugg down for being an *****.
- ptxyz, on 10/10/2007, -2/+0Web developers on the rise agrin...? heh
- Frezzle, on 10/10/2007, -0/+1$Free.99
- etandrib, on 10/10/2007, -1/+2This is an informative article. It wasn't exhaustive but it was a good read. Pricing is really important and I think a lot of web developers don't handle it well because well they are web developers and not businessmen. Good read.
- zeromancer, on 10/10/2007, -0/+7Summary: "Set prices that aren't too confusing and aren't too expensive."
- svivian, on 10/10/2007, -0/+1...and not too cheap as to under-value your products/services. Which is quite self-explanatory, really - "price your product so it's the right price" ;)
- hiPpymIck, on 10/10/2007, -2/+21) believe in freedom
2) set up pricing consultancy for geeks - paid by results.. so anyone can afford it
3)????
4) profit!! - CSharpSauce, on 10/10/2007, -0/+4Reading the comments on here.... What is with you people? Not everything can be free, eventually someone is going to need to make an actual dollar, advertising can only pay so much after a while.
- adolfojp, on 10/10/2007, -0/+1And the free software, charge for service model gives the money and control to the distributors, not to the actual developers. Just ask the people who make money out of servicing your favorite distro when was the last time that they sent a check to the actual developers.
- DjArcadian, on 10/10/2007, -0/+2Companies should offer limit version of their software for free. It's an excellent way to build a client base. Start off with the free limited version, then offer the enhanced version free for 30 days and then start charging them.
- Spektr4, on 10/10/2007, -0/+1They want it free, and they want to use ad-blockers to strip out advertising.
- spltimg, on 10/10/2007, -0/+1Great article... now if I can only figure out how to build a complete application someone will actually pay for I will be rich!
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