Ask HN: Web app pricing... to charge or not to charge
3 comments
Recently I needed a good diagram program for my assignment to use on my non-windows box. I found this web app: http://www.gliffy.com/ They had free and paid accounts. If it didn't have free accounts, I wouldn't have been impressed by how well it worked, and I wouldn't have told all my friends and my parents about it. Hmm but I'm not a founder so this is just from a particular free product consumer's point of view.
I agree; I think the freemium model works well. I have a client-side application that I have in a freemium model. The Free version provides just the basic core functionality. The Pro version adds all kinds of other extras that aren't necessary but add value. I think it's a great way to get market penetration with free word of mouth advertising.
It depends on how much 'tilt' there is to the category of the industry you're playing in. If there are strong viral and network effects, don't charge (for now and a long time).
My next concern regards whether or not to charge users to use my application. I've read articles and have had debates over the past few months. Now I'd like to pose this question to the HN population:
Assuming the founders' costs are are trivial (excluding time), what are the scenarios/reasons to charge users to use a product vs. providing free access to all users?