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	<title>Comments on: Drop.io Launches Realtime File Sharing; Should Paid Upgrades Be Their Focus?</title>
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		<title>By: sam lessin</title>
		<link>http://www.centernetworks.com/dropio-real-time-collaboration/comment-page-#comment-21784</link>
		<dc:creator>sam lessin</dc:creator>
		<pubDate>Wed, 30 Nov -0001 00:00:00 +0000</pubDate>
		<guid isPermaLink="false">#comment-21784</guid>
		<description>allen, thanks for the post - interesting perspective...  

we very much believe in the &#039;freemium&#039; approach - but not sure that the key is to offer as little as possible for &#039;free&#039; and put as much behind a paywal as possible.  I think that limits your ultimate scope and leaves room for people to come in with inferior product and under-cut you.

Rather, generally speaking, I think you have to model the cost of providing each given services when deciding what should/should not be premium.  When we offer things for free, we do so because the marginal cost of serving them how we think they will be used is low.  When we charge for things, it is generally because the marginal cost of providing them is high.  

anyway... that is our general approach.</description>
		<content:encoded><![CDATA[<p>allen, thanks for the post &#8211; interesting perspective&#8230;  </p>
<p>we very much believe in the &#8216;freemium&#8217; approach &#8211; but not sure that the key is to offer as little as possible for &#8216;free&#8217; and put as much behind a paywal as possible.  I think that limits your ultimate scope and leaves room for people to come in with inferior product and under-cut you.</p>
<p>Rather, generally speaking, I think you have to model the cost of providing each given services when deciding what should/should not be premium.  When we offer things for free, we do so because the marginal cost of serving them how we think they will be used is low.  When we charge for things, it is generally because the marginal cost of providing them is high.  </p>
<p>anyway&#8230; that is our general approach.</p>
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		<title>By: centernetworks</title>
		<link>http://www.centernetworks.com/dropio-real-time-collaboration/comment-page-#comment-21785</link>
		<dc:creator>centernetworks</dc:creator>
		<pubDate>Wed, 30 Nov -0001 00:00:00 +0000</pubDate>
		<guid isPermaLink="false">#comment-21785</guid>
		<description>&lt;p&gt;
I think you are forgetting that even if you charge nothing, others can still come into the market. 
&lt;/p&gt;
&lt;p&gt;
I believe what you launched today could have been offered as a premium - while I am not sure if there is a market demand for the offering, putting out there for free will make it very difficult to monetize in the future.
&lt;/p&gt;
&lt;p&gt;
Also, the actual cost isn&#039;t as important as the perceived value. Something might cost you nothing to build but could be perceived as something that the user will pay for. I&#039;ve seen this countless times over my years.
&lt;/p&gt;
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		<content:encoded><![CDATA[<p>
I think you are forgetting that even if you charge nothing, others can still come into the market.
</p>
<p>
I believe what you launched today could have been offered as a premium &#8211; while I am not sure if there is a market demand for the offering, putting out there for free will make it very difficult to monetize in the future.
</p>
<p>
Also, the actual cost isn&#8217;t as important as the perceived value. Something might cost you nothing to build but could be perceived as something that the user will pay for. I&#8217;ve seen this countless times over my years.</p>
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		<title>By: Faye B.</title>
		<link>http://www.centernetworks.com/dropio-real-time-collaboration/comment-page-#comment-21791</link>
		<dc:creator>Faye B.</dc:creator>
		<pubDate>Wed, 30 Nov -0001 00:00:00 +0000</pubDate>
		<guid isPermaLink="false">#comment-21791</guid>
		<description>It will be interesting to see where file sharing and file storage sites such as drop.io and http://www.myotherdrive.com go in the future.  You&#039;re right about getting the premium users converted being the important spot.  I noticed that http://www.myotherdrive.com now has online backup offering with the file sharing so it looks like they&#039;re working on ways to move people over still.</description>
		<content:encoded><![CDATA[<p>It will be interesting to see where file sharing and file storage sites such as drop.io and <a href="http://www.myotherdrive.com" rel="nofollow">http://www.myotherdrive.com</a> go in the future.  You&#8217;re right about getting the premium users converted being the important spot.  I noticed that <a href="http://www.myotherdrive.com" rel="nofollow">http://www.myotherdrive.com</a> now has online backup offering with the file sharing so it looks like they&#8217;re working on ways to move people over still.</p>
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