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http://en.wikipedia.org/wiki/Price_discrimination http://en.wikipedia.org/wiki/Price_discrimination is also relevant. Pricing information services is hard, ho
by olefoo 18y ago
http://en.wikipedia.org/wiki/Price_discrimination http://en.wikipedia.org/wiki/Price_discrimination
is also relevant.
Pricing information services is hard, however since you are usually able to segregate your market into people who will pay little and use little and people who will use lots and pay lots; you can usually find some feature set that casual users will want but not be willing to pay for.
- icky 18y agoIt's not quite so simple online. (See also vlad's comment). The set of people who will make an online transaction and pay, say $30, has a very large overlap with the set of people who will make an online transaction and pay $1, because the online transaction itself is the biggest barrier.
- olefoo 18y agoYes, this is where a lot of companies get lost, asking people for money in any amount is hard, and it comes with a bunch of unpleasant responsibilities. Providing something for free gives a warm glowy feeling and if advertising can support it, have at it; but remember that it's not a business until you have a proven revenue model.
- icky 18y agoI wasn't arguing against charging money. My point is, if you are going to charge, don't charge too little, as it will probably be counterproductive.