I love your product, but can i get it for x? What will you do?
My ex-investor told me a month ago, if someone want to buy your products/services, but he/she cannot afford your normal price, and even your profit only for $1, give it to them.
Maybe he/she will become your die-hard fans. Promoting your products/services to their friends and become your free marketing agents.
What will you do?
Do you agree? Why?
Unfortunately it is not so black and white and monetization depends on your product, target market segment, and business model, and whether the product is in consumer or enterprise space.
Free, Freemium, multi-sided, subscription, ad supported, sponsor supported, license, licensed+maintenance, data collection and monetization, free+maintenance, and so on have different monetization strategies.
Consumer and enterprise companies usually are at other ends of the spectrum.
Are number of users more valuable to you than what they pay? Do you need die hard fans, promoters, and influencers? Does giving away a service to a strategic customer help you get better deals. Can a third party pay for the service, i.e. advertisers?
Here are some of my blog posts that talk of monetization strategies in apps from a couple of years ago, but I recommend the book below for a general overview.
https://dickeysingh.com/2016/10/31/app-monetization-strategies-of-today-fb3c90f59c33/
https://dickeysingh.com/2016/08/14/99-penny-gap-premium-app-pricing-2715d19803bd/
https://dickeysingh.com/2016/10/26/subscriptions-will-feed-the-app-world-a6a80b673f4e/
Book:
Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers https://www.amazon.com/dp/0470876417/ref=cm_sw_r_cp_api_r-DGBbPPVSRMJ
The best advice I heard on that topic is:
Whenever someone asks for a discount.
First, ask why. Ask them why you should give it to them.
Some just ask because words are cheap, and some might have a real reason where maybe an alternative solution can be found.
Plus a sales coach once told me: whenever you go down with the price, also reduce some value from the offer. Else, you just loose integrity and trust.
This comment was deleted 7 years ago