Why not simply have the users pay for a product?
What's wrong with that?
Nothing wrong with having customers pay - that's the point. The problem is they have to be willing to pay before they will. What makes them willing to pay is marketing and/or sales.
One way to do that, has traditionally been to give something away for free. With the dot.con boom a few years ago, financiers seemed to think getting a large number of people to accept your free offer was the definition of success. Dharmesh is just warning others not to fall into that trap.
An other problem with paying for a product, that the cost of duplicating that product might be zero or close to zero, as it is the case with software. In this case it is just silly to expect users to pay for each copy of the product, when they can create those copies themselves for free. Trying to force rules upon users that restrict the usage of the product, and criminalize them if they do otherwise, is not the solution .
This idea has been of course explored in more detail in other places :)
By your articles you make me think about a business model. Most pessimistic thinking is good for a startup.
Also I think the limit Google have put for their API usage is to make sure users dont use the API for commercial purposes. They are not into that business. A thousand seems to be enough for a single user, not sufficient for a website.
Hello am Daniella Coney, from Ghana and owns a football club and i want an investor to come and invest in my football club. if you are intrested i will be very glad to hear from you.
Daniella Coney - I would love to invest in your club. How do you want the money sent? I can send you 2 quarters, or 5 dimes, or ....
Thanks for the article. I like the point about "It's OK to charge for your product". I was in a meeting once with a possible business partner when he said "Our customers want us to make money so that we stay in business and keep providing them with the services they need". That hit the head on the nail.
I guess one's pricing model is included in one's business plan, though choosing the right one for your startup can be haz-hazardous. We're currently in that situation now so this, and your other articles are a fantastic read, so thank you.
Hi, I am interested in developing a business in the area of speciality soaps and creams. Can you walk me through the Business Model and Marketing Model. Thanks
We sell retail POS software. We tried charging $30 per copy, but now give a lite version of the software away for free. We then charge monthly fees, plus transactions charges for users needing credit card / check processing, transactions over 50 per day or 300 per month.
We also place ads on customer sales slips.
It works well for us. Converison is around 12%. Our JV partners also experience excellent results. We print over 5 million ads per month.
We are angel funded, having received over $250K to date.
We operate <a href = "http://www.tamion.com">Tamion.com, <a href = "http://www.Check101.com">Check101.com, <a href = "http://www.herculesmall.com">HerculesMall.com, <a href = "http://www.betterjobtomorrow.com">BetterJobTomorrow.com, and <a href = "http://www.bestroomsforless.com">BestRoomsForLess.com.