Comments on: If Charging is Wrong, I Don’t Want To Be Right! http://www.centernetworks.com/if-charging-is-wrong-i-dont-want-to-be-right Web 2 and Social Media News and Reviews Sat, 21 Nov 2009 01:50:56 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: Michael St. Hilaire http://www.centernetworks.com/if-charging-is-wrong-i-dont-want-to-be-right/comment-page-#comment-13164 Michael St. Hilaire Wed, 30 Nov -0001 00:00:00 +0000 #comment-13164 For our company we started out with a plan for how to make money, and I can tell you we're trying to avoid the traditional ad-supported model if we can. I think 'going with your gut' is probably the only blanket statement you can make about whether it's good to charge or go ad-supported. There are a number of factors you have to consider when deciding. You may lose some customers to charging your customers, but you also may lose customers because they hate banner ads, especially if you aren't careful about what ads you run. Is the service you are providing truly unique? What are your competitors doing? Are you planning a liquidity event where the # of users you have is very important, or do you want to grow your business for a few more years and show profitability? If you think it through properly, and go with your gut feeling you will make the right call more often than not. For our company we started out with a plan for how to make money, and I can tell you we’re trying to avoid the traditional ad-supported model if we can.

I think ‘going with your gut’ is probably the only blanket statement you can make about whether it’s good to charge or go ad-supported.

There are a number of factors you have to consider when deciding. You may lose some customers to charging your customers, but you also may lose customers because they hate banner ads, especially if you aren’t careful about what ads you run.

Is the service you are providing truly unique? What are your competitors doing? Are you planning a liquidity event where the # of users you have is very important, or do you want to grow your business for a few more years and show profitability?

If you think it through properly, and go with your gut feeling you will make the right call more often than not.

]]> By: Meir http://www.centernetworks.com/if-charging-is-wrong-i-dont-want-to-be-right/comment-page-#comment-14587 Meir Wed, 30 Nov -0001 00:00:00 +0000 #comment-14587 What any online service is doing is trying to capture as much attention as possible, if it's quantity or quality. Attention is a scarce resource. When trust is built, this attention can be used for commercial purposes, all the while remembering to serve the users instead of interrupting them. Advertising can become a service. What any online service is doing is trying to capture as much attention as possible, if it’s quantity or quality. Attention is a scarce resource. When trust is built, this attention can be used for commercial purposes, all the while remembering to serve the users instead of interrupting them. Advertising can become a service.

]]> By: Lucas Rodriguez Cervera http://www.centernetworks.com/if-charging-is-wrong-i-dont-want-to-be-right/comment-page-#comment-14674 Lucas Rodriguez Cervera Wed, 30 Nov -0001 00:00:00 +0000 #comment-14674 We charge our clients for our software, and it has proven to be a successful business model. I think the key is that we are not in a crowded space and we have a very focused marketing strategy. We charge our clients for our software, and it has proven to be a successful business model. I think the key is that we are not in a crowded space and we have a very focused marketing strategy.

]]> By: Anonymous http://www.centernetworks.com/if-charging-is-wrong-i-dont-want-to-be-right/comment-page-#comment-14723 Anonymous Wed, 30 Nov -0001 00:00:00 +0000 #comment-14723 Who is Brad from 37 Signals? Who is Brad from 37 Signals?

]]> By: Andy http://www.centernetworks.com/if-charging-is-wrong-i-dont-want-to-be-right/comment-page-#comment-14731 Andy Wed, 30 Nov -0001 00:00:00 +0000 #comment-14731 Initially we falsely believed we could charge users for using our startup service. It wasn't long until we better understood the reality of B2C web 2.0 sites and thought about the target audience. It simply had to be advertising or bust. Initially we falsely believed we could charge users for using our startup service. It wasn’t long until we better understood the reality of B2C web 2.0 sites and thought about the target audience. It simply had to be advertising or bust.

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