Comments on: Bad Business Model Evolution http://blog.perfectspace.com/2009/05/15/bad-business-model-evolution/ community, entrepreneurship and business strategy Sun, 18 Jul 2010 00:56:02 +0000 hourly 1 http://wordpress.org/?v=3.0 By: nate http://blog.perfectspace.com/2009/05/15/bad-business-model-evolution/comment-page-1/#comment-90421 nate Mon, 18 May 2009 22:44:41 +0000 http://blog.perfectspace.com/?p=1917#comment-90421 The short of my advice would be (1) leave the free item free (no ads either), (2) build new and "essential" features into a Pro version and charge for that. If it's really worth more than $0, people will pay for it. If people aren't willing to pay money for something then why are you trying to turn it into a business anyway? If people aren't willing to pay for it, you have 3 options.. (A) keep it a hobby project, (B) give up on it or (C) find a new way to make money off of it. I prefer (C) because it forces you to be creative about how you're going to get money and that seems to work well for many many businesses which offer a free product. Plus, you've spent a lot of love and time on the project. But putting ads on it is just pimping out your loved app/hobby/project. I've done it before (on this blog and in other apps and businesses) and every time it felt dirty (which obviously is subjective and allegorical, but a worthwhile and pretty common experience from what I've heard). The short of my advice would be (1) leave the free item free (no ads either), (2) build new and “essential” features into a Pro version and charge for that.

If it’s really worth more than $0, people will pay for it. If people aren’t willing to pay money for something then why are you trying to turn it into a business anyway?

If people aren’t willing to pay for it, you have 3 options.. (A) keep it a hobby project, (B) give up on it or (C) find a new way to make money off of it. I prefer (C) because it forces you to be creative about how you’re going to get money and that seems to work well for many many businesses which offer a free product. Plus, you’ve spent a lot of love and time on the project.

But putting ads on it is just pimping out your loved app/hobby/project. I’ve done it before (on this blog and in other apps and businesses) and every time it felt dirty (which obviously is subjective and allegorical, but a worthwhile and pretty common experience from what I’ve heard).

]]> By: Chad http://blog.perfectspace.com/2009/05/15/bad-business-model-evolution/comment-page-1/#comment-90411 Chad Sun, 17 May 2009 17:20:06 +0000 http://blog.perfectspace.com/?p=1917#comment-90411 There are some handy little free programs in my arsenal that are multiple versions behind the "latest and greatest" because the program creators followed your failed business model. Once upon a time I downloaded the program, probably didn't click their "Donate" button, and have been using thierever since. I've probably told lots of other people to use the app, but that still doesn't put money in the developer's pocket. I'm interested to read your view on good business model evolution. The karma model of giving projects away for free as a way to build a following sooner or later needs to translate to paying the rent. There are some handy little free programs in my arsenal that are multiple versions behind the “latest and greatest” because the program creators followed your failed business model. Once upon a time I downloaded the program, probably didn’t click their “Donate” button, and have been using thierever since. I’ve probably told lots of other people to use the app, but that still doesn’t put money in the developer’s pocket.

I’m interested to read your view on good business model evolution. The karma model of giving projects away for free as a way to build a following sooner or later needs to translate to paying the rent.

]]> By: nate http://blog.perfectspace.com/2009/05/15/bad-business-model-evolution/comment-page-1/#comment-90400 nate Fri, 15 May 2009 17:53:37 +0000 http://blog.perfectspace.com/?p=1917#comment-90400 Now, I realize this was a pessimistic approach. And perhaps in the future I'll give some case studies for good business model evolution. But, I have seen this so often I wanted to point it out as a "What not to do" item first. Cheers. Now, I realize this was a pessimistic approach. And perhaps in the future I’ll give some case studies for good business model evolution. But, I have seen this so often I wanted to point it out as a “What not to do” item first.

Cheers.

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