The example makes sense, but it's not explained well. Remember that he gave no specifics of what the software does. Suppose the software is for calculating co

The example makes sense, but it's not explained well. Remember that he gave no specifics of what the software does. Suppose the software is for calculating commissions and stores the data on a centralized server. Now suppose they charge by how much data you store. This would be the "variable price" he tries to portray and the price would be somewhat correlated with number of sales which may appeal to some agencies.