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Go B2B. Businesses will pay, consumers will not. If you can build a base of a few hundred real estate agents paying $50 a month, then you'd have money to subs

by byoung2 14y ago

Go B2B. Businesses will pay, consumers will not. If you can build a base of a few hundred real estate agents paying $50 a month, then you'd have money to subsidize a free version for consumers, but I wouldn't bother with B2C until you're making more money with B2B than you know what to do with.

ceeK 14y ago
That's what I thought. However, would it change things that the service I am developing is aimed at consumers (i.e. the students) but beneficial to real estate agents? The free subsidised version would have to be offered from the start.
- byoung2 14y ago
  In general, I would avoid consumers, and in particular, students are a terrible demographic to sell to because they are poor. They will pay rent, because they have to, but they won't pay you for your service. I would go after the realtors first because they can and will pay. If anything, if you have a free product, you should sell leads to the realtors, or sell advertising to realtors (I believe Zillow charges for realtors to list their info). In that case, you're not actually giving away a free product, the students are the product you sell to realtors. In that case, it is worth exploring.
  - ceeK 14y ago
    Thank you for your advice, you make a good point. I think I will definitely strive to work with the estate agents. Zillow seems an interesting service. It is similar to what I wish to create here in the UK. The difference is I can tailor it more to students (I'm grouping it with estimated internet speeds, crime statistics, proximity to the university bus stops, how far a walk are you from the student bars etc). Cheers for mentioning it.
dear 14y ago
300 agents x $50 a month x 12 months = $180,000 a year So basically a lifestyle business that won't scale if that's what you are after.
- byoung2 14y ago
  I offered that example as an arbitrary milestone to reach before exploring the free version. There is no reason to stop at 300, as there are likely a few hundred thousand agents he could sell to. Even 2% of that total is 6000 people paying $50 a month.

by byoung2 14y ago

ceeK 14y ago

That's what I thought. However, would it change things that the service I am developing is aimed at consumers (i.e. the students) but beneficial to real estate agents? The free subsidised version would have to be offered from the start.

byoung2 14y ago
In general, I would avoid consumers, and in particular, students are a terrible demographic to sell to because they are poor. They will pay rent, because they have to, but they won't pay you for your service. I would go after the realtors first because they can and will pay. If anything, if you have a free product, you should sell leads to the realtors, or sell advertising to realtors (I believe Zillow charges for realtors to list their info). In that case, you're not actually giving away a free product, the students are the product you sell to realtors. In that case, it is worth exploring.
- ceeK 14y ago
  Thank you for your advice, you make a good point. I think I will definitely strive to work with the estate agents. Zillow seems an interesting service. It is similar to what I wish to create here in the UK. The difference is I can tailor it more to students (I'm grouping it with estimated internet speeds, crime statistics, proximity to the university bus stops, how far a walk are you from the student bars etc). Cheers for mentioning it.

dear 14y ago

300 agents x $50 a month x 12 months = $180,000 a year So basically a lifestyle business that won't scale if that's what you are after.

byoung2 14y ago
I offered that example as an arbitrary milestone to reach before exploring the free version. There is no reason to stop at 300, as there are likely a few hundred thousand agents he could sell to. Even 2% of that total is 6000 people paying $50 a month.