Everyday new online services are launched and must of us don’t even notice but a few of them. I’ve found that the majority of these few start with a freemium model or a beta test mode to attract users and subscribers. I don’t find anything wrong with this, but personally, the first thing I do when exploring a new service is to find the pricing page to check if I can afford it.
For me, there’s no personal benefit to subscribe and start using an application day on and day off, configuring the service, entering my data, so when the owners think they have a large customer base, publish the pricing information and I end up without being able to use the application. It has happened to me before. Now, when I can’t find the pricing information, I just don’t sign up and let it pass it by.
Why everyone should you have a pricing model:
Even if you need a year for beta testing your product, at least publish how you think the business will make money. It shows potential customers that the company has a plan and also, when the time comes, you’ll know how much you’ll need to pay. Also the company has (or at least has think of) a business model. Most start ups just die because they can’t find the right model to generate cash flow. This gives some kind of assurance to customers.
The right customers
Every potential prospect subscribed has even more probability of becoming a customer when the application exits the beta testing phase. You can increase conversion even more by giving a discount to beta tester for their efforts.
One of the first thing we did with LicenseSpot, our license and software protection service, was to define a pricing and a business model and then built the website and all collateral information. Even though we’re live, any new prospect can check how much the service is worth and if it fits they’re pocket.
Do you provide pricing information on you web applications?