7 Pithy Insights On How Not To Give Your Software Away For Free(onstartups.com)
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7 Pithy Insights On How Not To Give Your Software Away For Free
http://onstartups.com/home/tabid/3339/bid/1328/7-Pithy-Insights-On-How-Not-To-Give-Your-Software-Away-For-Free.aspx
2 comments
From my experience, I want to add that customer satisfaction increases as the price you charge increases.
You may think you've "launched" a product by removing the word "beta" and finding a lot of publicity. However, if a customer sees you are charging only $5 a month for something incredibly disruptive which saves your users thousands of dollars per year, they will consider you still in beta, and will not take you seriously.
Customers will feel much more at ease when you charge them a lot of money, which shows confidence you know what you're doing and that you want to be around the next day. I would imagine this will also increase the value of the company during a take over.
You may think you've "launched" a product by removing the word "beta" and finding a lot of publicity. However, if a customer sees you are charging only $5 a month for something incredibly disruptive which saves your users thousands of dollars per year, they will consider you still in beta, and will not take you seriously.
Customers will feel much more at ease when you charge them a lot of money, which shows confidence you know what you're doing and that you want to be around the next day. I would imagine this will also increase the value of the company during a take over.
Our revenue model is completely in line with this article. We charge our customers a fair price for our service, and in return we will do just about anything to keep their business... We figure out ways to scratch their itch. This is how I understand software.
If I could give advice to anyone in the process of founding a startup, it would be to do something that has revenue potential besides advertising. If you can do something that solves someone elses business problems, it may be worth the cost of a full or part time employee for that company.