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But if I have users who are using the service for free doesn't it already mean that there is a customer, a problem and a value?
by yanis_t 7y ago
But if I have users who are using the service for free doesn't it already mean that there is a customer, a problem and a value?
- cheez 7y agoI guess I wasn't clear. The calculation you need to do is: NumberOfCustomers * RevenuePerCustomerPerMonth >= MoneyINeedPerMonth Then you need to back out the product and marketing from this equation. For example, for your TODO app: NumberOfCustomers * $3/customer/month >= 2000 So at $3/customer/month, you will need ~670 customers. Next you figure out: where the hell am I going to get 670 customers? I've been running one business for over 10 years and I think I have only 1500 customers in total. Finding customers isn't easy. What I suggest is: NumberOfCustomers = 10 MoneyINeedPerMonth = 2000 Create a product that 10 people will pay you $200/month for. Now, no one is going to pay you $200/month for your TODO app as-is. But... What can you change to make it so useful that 10 people just throw money at you? This is how I develop my ideas that are profitable from day one. There is a new software product I've recently created that I designed to make me $15K/day. And it's working. Sometimes. But still, it's working, sometimes. Edit: the worst thing you can possibly do is slap a price on what you've done. The reason is that you're just slapping a price on it, not because you've investigated the value added. If you really wanted to add a price of $3/month to people who are already using it, then add something that's useful to them. Perhaps integrate with Google Calendar as a pro feature. But now, you need to find 670 people who want your Google Calendar integration and need your particular TODO app. Not easy by any stretch.