Pricey Webapp?

November 17th, 2008  |  Published in Uncategorized  |  2 Comments

I met up with my TaskFive partner over the weekend and we took stock of what we have on our hands.  Its been a pretty unreal experience being involved in the whole experiment and despite one or two challenges – it has been an unprecedented success.  Well – maybe it would be a little more unprecedented when we have some money coming in.  Now its time to roll up our slieves and start making that happen.

When I met Darrell on Saturday morning we started working on a spreadsheet to figure out how we could move this along.  We have a big leg up in terms of the amount of PR we’ve received but that is a long way from making a sale.  We have made two direct sales and direct marketing it the ‘break even’ plan.  Whatever happens online is going to happen and we don’t have so much control over that.

But I digress – the reason I started this post was so that I could post up our targets spreadsheet.  The basic idea here is that there are 3 price points which have been demonstrated to work.

Instead of trying to figure out what our app is ‘worth’ – we’re first deciding on the price points and then coming up with a value proposition to justify those price points.  I like this approach because it helps get the creative juices flowing in terms of coming up with ideas.  Its not so much how much would X be worth – but instead – would you pay €9 if you got X in return or would it take X + Y + Z?

Anyway – here is the spreadsheet.  Have a look and let me know what you think.

Responses

  1. Brian says:

    November 17th, 2008 at 4:57 pm (#)

    Hi J,

    Very impressive projections. If you can make 20k per month by this time next year then you’re a smarter man then I am!!! I like the idea of three price points though. I remember it from basic economics in college. Price something for all wallets!

    :-)
    Brian

  2. thegoose says:

    November 18th, 2008 at 9:01 am (#)

    Hey Brian -

    20k does sound like a lot. I wonder if there is a temptation to set a ‘reasonable’ revenue target according to what we personally consider to be a lot of money. Of course that doesn’t make much sense. The revenue is a by-product of the number of leads and the conversion rate. I guess the number of leads sounds like a lot.

    Any chance you can send up that ‘basic economics’ book? God knows what other gems I might learn from it ;)

    J

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