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The First Penny - getting your users to pay you anything at all

redeye.firstround.com

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Re: The First Penny - getting your users to pay you anything at all

#4

Post by cnaclerio »

Readmore wrote: post #3

It may just be me but I didn't really get much from this article. The author states that it's hard to get users to pay for something, and then doesn't offer any advice as to how to fix the problem.

I think how you fix the problem is finding other means to make money rather than having users pay. I must admit, if I see a dollar sign on a website, I'm less likely to even try it out. And if I never try it, then I never get hooked, and everyone loses.

I think we're on the verge of a new form of web advertising. One that works, actually makes money, and isn't annoying (like flashing banners). Google's way is a good start, but we need something revolutionary, and once it happens I think the question of whether or not users pay becomes futile.

Re: The First Penny - getting your users to pay you anything at all

#5

Post by jwecker »

It's kind of funny- I think about web apps constantly. After reading this, though, I decided to make a list of the web applications that I have actually paid for. I could only think of one- it was one of the ediet ones that lets you pick your diet (out of many popular ones) then emails you meal plans and shopping lists each week. I'm not even on a diet.

The fact that it saved me time and thought thinking through healthy meals was what got me to pay. And it made me realize also how few web apps actually end up saving me time in the end (which is the make-it or break-it factor for me, but I realize probably not for others).

So here's my question- what web apps have you other news.YC'ers ever actually paid money for? Any?

Re: The First Penny - getting your users to pay you anything at all

#6

Post by Readmore »

It is true that making your users pay to try your product is the best way to keep your userbase small. I think that offering a free version and then a pay version with extra features is the only real way to expect users to pay. The problem is what happens when someone else comes along and offers all of your features for free? Google was really smart with Gmail because they started out offering people 2 gig of space, which seemed insane. What was even better is that they then made it constantly 'increase' so it seems like you have as much space as you'll ever need. But if you actually watch that ticker it's increasing so slowly that it probably isn't costing them any more money, and in fact their cost probably goes down, to give each user that much space.I guess my point is that once you have a user offering them a better 'precieved' value, even if it's not better than someone else, will get them to stick with you, or get them to consider a pay account.

Re: The First Penny - getting your users to pay you anything at all

#8

Post by imp »

jwecker wrote: post #5

It's kind of funny- I think about web apps constantly. After reading this, though, I decided to make a list of the web applications that I have actually paid for. I could only think of one- it was one of the ediet ones that lets you pick your diet (out of many popular ones) then emails you meal plans and shopping lists each week. I'm not even on a diet. The fact that it saved me time and thought thinking through heal…

That's a good point. I just now realized that I haven't paid for any web apps myself (unless you count Skype). Although recently I was looking at PayScale (http://www.payscale.com/), and thought that if I was looking for a job I would probably buy a premium report from them. In this case the $20 report could help negotiate a few extra thousand dollars in salary.

Re: The First Penny - getting your users to pay you anything at all

#9

Post by run4yourlives »

cnaclerio wrote: post #4
Readmore wrote: post #3

It may just be me but I didn't really get much from this article. The author states that it's hard to get users to pay for something, and then doesn't offer any advice as to how to fix the problem.

I think how you fix the problem is finding other means to make money rather than having users pay. I must admit, if I see a dollar sign on a website, I'm less likely to even try it out. And if I never try it, then I never get hooked, and everyone loses. I think we're on the verge of a new form of web advertising. One that works, actually makes money, and isn't annoying (like flashing banners). Google's way is a good…

I think how you fix the problem is finding other means to make money rather than having users pay.

The one issue with this is that it smacks of dot-bomb "Build it and they will come" thinking.

Although a few leaders will emerge, I don't think it's a viable theory for most start-ups. You're better off lowering your expectations and sharing a piece of a smaller pie.

Of course, VC's don't like that thinking too much.

Re: The First Penny - getting your users to pay you anything at all

#10

Post by imp »

jwecker wrote: post #5

It's kind of funny- I think about web apps constantly. After reading this, though, I decided to make a list of the web applications that I have actually paid for. I could only think of one- it was one of the ediet ones that lets you pick your diet (out of many popular ones) then emails you meal plans and shopping lists each week. I'm not even on a diet. The fact that it saved me time and thought thinking through heal…

Also, a friend of mine used one of the major dating sites like eHarmony, and I think it cost her about $20 for 3 months. As in your example, it seems like the money is worthwhile because it saves time.
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