Ask HN: Why are people so reluctant to pay for software?

#1

Post by flomk » Sat, May 02, 2020, 10:43 PM UTC

All of my evidence is anecdotal, but from talking to friends that are not power users/tech people, to me it seems that the average person thinks of paying for software as an outlandish idea.

Meanwhile they are more than willing to spend $5 on coffee yet wouldn't consider spending $5 for software. What makes even less sense to me is that when it comes to subscription based services they seem more willing to spend their money than they are for a one time payment.

Would love to hear your thoughts as to why this is.

Re: Ask HN: Why are people so reluctant to pay for software?

#2

Post by tlb » Sat, May 02, 2020, 10:56 PM UTC

Two main reasons for me:

Probably 80% of the software I've ever tried, I hated and never touched again. That's a bummer when you've just paid for it.

Paid software is usually a pain if you want to use it on more than one device, or when you upgrade a device.

Re: Ask HN: Why are people so reluctant to pay for software?

#3

Post by api » Sat, May 02, 2020, 11:10 PM UTC

What people will pay for X is not at all rational. The market has been taught that most software is free, and that coffees cost five bucks. That is what people expect, so that is what they pay.

Another reason is that it's tough to compete with free. FOSS edges out paid developer and systems tools everywhere but the high end or specialized niches, and surveillance capitalism provides a model whereby huge SaaS stacks for social media and communication can be not only offered but aggressively pushed for "free." These are not free, but the cost is quite hidden.

Lastly I think the added friction of paying, licensing, and license management is a factor. Anything that adds friction slows adoption a lot.

Re: Ask HN: Why are people so reluctant to pay for software?

#4

Post by flomk » Sat, May 02, 2020, 11:13 PM UTC

tlb wrote: post #2

Two main reasons for me: Probably 80% of the software I've ever tried, I hated and never touched again. That's a bummer when you've just paid for it. Paid software is usually a pain if you want to use it on more than one device, or when you upgrade a device.

Do you think you would be less hesitant if there was a refund policy similar to that of steam's where a time window is provided for you to try and return if you are not happy with your purchase?

Re: Ask HN: Why are people so reluctant to pay for software?

#5

Post by sneeuwpopsneeuw » Sat, May 02, 2020, 11:14 PM UTC

Free software: Over the last 3 years I slowly made the switch to linux and started using more and more open source and free software. Once you have used libre office and google docs it is hard to motivate your self to buy the MS office suit. This same argument can be used for free to play games. So the paid software world has responded by making more and more specific and specialized tools. The Adobe suit is for example a great example of this.

Not Physical: For me personally one of the reasons that I stopped playing for game was that they stopped shipping it on real physical discs.

Re: Ask HN: Why are people so reluctant to pay for software?

#6

Post by greenyoda » Sat, May 02, 2020, 11:25 PM UTC

flomk wrote: post #4

tlb wrote: post #2

Two main reasons for me: Probably 80% of the software I've ever tried, I hated and never touched again. That's a bummer when you've just paid for it. Paid software is usually a pain if you want to use it on more than one device, or when you upgrade a device.

Do you think you would be less hesitant if there was a refund policy similar to that of steam's where a time window is provided for you to try and return if you are not happy with your purchase?

Instead of a refund, I'd prefer a free trial period (possibly with limited functionality) so I could evaluate the quality of the software before laying down my money. Knowing I'll need to go through the hassle of getting a refund if it doesn't work out makes me less likely to try the software in the first place. Contacting customer support for a refund is an unpleasant process at too many companies.

Also, as to your original question of why people are reluctant to pay for software, it depends a lot on the software. Much of the software that people sell (e.g., a game for a phone) is less useful to me than a cup of coffee, so I wouldn't bother downloading it even if it was free. And even if your software is useful to me, it has to compete with lots of free alternatives that are very good.

There are also the security/privacy risks that comes with installing software from unknown providers. A widely used open source program would be easier to trust than an app from some random person on HN that I've never heard of.

That said, I do buy software that's useful to me. For example, I buy tax prep software every year, and I pay for e-mail (Fastmail) and a web-based RSS aggregator (Newsblur).

Re: Ask HN: Why are people so reluctant to pay for software?

#7

Post by flomk » Sat, May 02, 2020, 11:26 PM UTC

api wrote: post #3

What people will pay for X is not at all rational. The market has been taught that most software is free, and that coffees cost five bucks. That is what people expect, so that is what they pay. Another reason is that it's tough to compete with free. FOSS edges out paid developer and systems tools everywhere but the high end or specialized niches, and surveillance capitalism provides a model whereby huge SaaS stacks f…

While I definitely agree that FOSS is good enough that makes it paying for software that does the same thing less appealing, the average person that I talked about in my post doesn’t use and usually isn’t even aware of FOSS.

Re: Ask HN: Why are people so reluctant to pay for software?

#8

Post by brudgers » Sat, May 02, 2020, 11:47 PM UTC

In the consumer space value propositions are soft. Money for status, convenience, comfort, security, etc. Paid software has marginal advantage at best because nobody sees it, proficiency takes time, risks are long tail, etc. The business market has a simple money for money value proposition.

Re: Ask HN: Why are people so reluctant to pay for software?

#9

Post by jimmyvalmer » Sun, May 03, 2020, 12:05 AM UTC

Ease of replication makes things like music, movies, and software worthless.

Re: Ask HN: Why are people so reluctant to pay for software?

#10

Post by buboard » Sun, May 03, 2020, 12:13 AM UTC

- no social signaling value

- knowing that there is an easily obtainable alternative (piracy) makes buying feel like being cheated/ripped off. people don't like feeling like fools, they like to think they re on top of things

- copies are free to make, so nobody is being deprived or damaged by them obtaining a copy

- programmers are generally invisible, so no emotional guilt unless the programmer themselves makes a personal plea/fundraiser

- probably no emotional value before buying. after buying, perhaps there is a certain emotional commitment to the software/game and so they are willing to spend more .

- Apple is the exception. It has social signaling value and also emotional affect, so users are primed to and willing to pay no matter what