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.
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
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