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Underscore Price Dynamics

marco.org

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Re: Underscore Price Dynamics

#31

Post by krmmalik »

ghshephard wrote: post #24
krmmalik wrote: post #19

Earlier quoted context omitted.

What are your thoughts on say something like a video course? i.e giving it away for free and doing an upsell on consulting or stick to charging for the course?

That's the twitter/blog model for a lot of people. They give away really great content, build their brand, and then hold conferences/sell t-shirts, etc... The only challenge with that is you have to be really skilled/gifted to get traction in a very noisy environment. The other challenge with something like "consulting" - is that you don't get a lot of opportunity to scale - you are limited by the number of hours a d…

Yes, the brand value approach I understand. Thing is, I don't really want to upsell to events and I agree regards consulting not being scalable, but i have a dilemma regards pricing for my course.

I guess I need to give it more thought.

Re: Underscore Price Dynamics

#32

Post by cmelbye »

crazygringo wrote: post #27

Is there anything in the app store TOS preventing developers from releasing, for example, free versions that are 14-day trials, that are upgraded to full version in-app, or else stop working? I have nothing against paying for apps, but after having been totally burned a bunch of times, I refuse to pay for an app I can't even try out first. Lots of people say "just look at the reviews", but they usually don't tell you…

Yes, that's not allowed.

Re: Underscore Price Dynamics

#33

Post by ghshephard »

crazygringo wrote: post #27

Is there anything in the app store TOS preventing developers from releasing, for example, free versions that are 14-day trials, that are upgraded to full version in-app, or else stop working? I have nothing against paying for apps, but after having been totally burned a bunch of times, I refuse to pay for an app I can't even try out first. Lots of people say "just look at the reviews", but they usually don't tell you…

From: "http://www.makayama.com/checklist.html"

Time trials are not allowed, if they completely disable the app's use. Also restrictions such as limiting the number of runs are not allowed. Apps should have core functionality that does not expire. However, you can use In App purchase to let certain features expire and then charge to unlock these again.

Re: Underscore Price Dynamics

#34

Post by jbigelow76 »

spolsky wrote: post #15

The only business models I want to work on any more have some mass-market component that is absolutely free, and a niche companion product that makes money off of the exhaust fumes of the mass-market component. The last two businesses I started are Stack Overflow, which is free, where the careers business on the side makes money on the small fraction of Stack Overflow users who are looking to get better jobs, and Tre…

    >What Marco is reporting here is that the old-fashioned "make something and get people to pay for it" business is much harder to pull off and likely to always be left in the dust by someone making the same thing for free, getting 100x the user base, and getting 1% of them to pay for some value added feature.
Joel, do you see bootstrapping as viable in your ideal market or does it become a VC only game?

Re: Underscore Price Dynamics

#35

Post by toyg »

k-mcgrady wrote: post #10

In my experience it's gradually gotten worse over time. Up until someone in 2010 charging people $1-3 up front worked well for me. Then sometime in 2010 it slowly stopped working as more of the 'top' apps switched to a free with IAP model. Consumers didn't want to pay up front for an app from an unknown developer when people like EA were giving their apps away for nothing.

In Europe, 2010 is when people lost their jobs because of the 2008 crash. I bet people like EA switched to IAP because they felt it was a way to bypass the newly-developed austerity mindset.

Re: Underscore Price Dynamics

#36

Post by ghshephard »

krmmalik wrote: post #31
ghshephard wrote: post #24

Earlier quoted context omitted.

That's the twitter/blog model for a lot of people. They give away really great content, build their brand, and then hold conferences/sell t-shirts, etc... The only challenge with that is you have to be really skilled/gifted to get traction in a very noisy environment. The other challenge with something like "consulting" - is that you don't get a lot of opportunity to scale - you are limited by the number of hours a d…

Yes, the brand value approach I understand. Thing is, I don't really want to upsell to events and I agree regards consulting not being scalable, but i have a dilemma regards pricing for my course. I guess I need to give it more thought.

You know best - but don't overlook the possibility of in-person training for groups. It's halfway between an event and a training course.

I just spent a couple weeks with 7 other people learning about Cisco Routers from a single instructor - Total cost was $7300 each - so, $50K for a two-week class.

There's really good money in in-person class training.

Re: Underscore Price Dynamics

#37

Post by FollowSteph3 »

People say they are willing to pay but more often than not they look not to pay. Same as airlne tickets. Everyone complains the service and quality is terrible yet everyone is always looking for the cheapest price. It's the real consumer behavior drives the markets rather than our idealized behaviors ;)

Re: Underscore Price Dynamics

#39

Post by zdw »

spolsky wrote: post #15

The only business models I want to work on any more have some mass-market component that is absolutely free, and a niche companion product that makes money off of the exhaust fumes of the mass-market component. The last two businesses I started are Stack Overflow, which is free, where the careers business on the side makes money on the small fraction of Stack Overflow users who are looking to get better jobs, and Tre…

Stack Overflow benefits from network effect, and in the "sharing economy" of people contributing their knowledge in exchange for "internet points". Thus, you do generate value (not necessarily monetarily) off of even free users, if they contribute to discussions.

(I can't speak to Trello as I haven't needed/used it)

I'd argue that the success of the IAP model used in the app stores is much more of a response to the lack of free trial versions, which is kind of like the drug pusher "the first hit is free" sales method...

Re: Underscore Price Dynamics

#40

Post by krmmalik »

ghshephard wrote: post #36
krmmalik wrote: post #31

Earlier quoted context omitted.

Yes, the brand value approach I understand. Thing is, I don't really want to upsell to events and I agree regards consulting not being scalable, but i have a dilemma regards pricing for my course. I guess I need to give it more thought.

You know best - but don't overlook the possibility of in-person training for groups. It's halfway between an event and a training course. I just spent a couple weeks with 7 other people learning about Cisco Routers from a single instructor - Total cost was $7300 each - so, $50K for a two-week class. There's really good money in in-person class training.

Wowsers!

Well, great food for thought, thanks.

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