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An ongoing discussion of web app pricing strategies by Paul Farnell, founder of Litmus.

Email Paul
paul@salted.com
May
16th
Fri
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Spellr.us is a service still in private beta. They have a nice touch on their beta sign up form. In addition to the usual name and email fields, they ask you about your pricing preferences, and how much you’d be willing to pay. 
Spellr.us is a service still in private beta. They have a nice touch on their beta sign up form. In addition to the usual name and email fields, they ask you about your pricing preferences, and how much you’d be willing to pay. 
Apr
20th
Sun
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37signals have changed their Basecamp pricing. They have removed the $12/month plan, simplifying it down to 3 choices, and made the free sign up much more difficult to find. Will be interesting to see if this works better for them - whether they keep it or revert back to the old pricing.
37signals have changed their Basecamp pricing. They have removed the $12/month plan, simplifying it down to 3 choices, and made the free sign up much more difficult to find. Will be interesting to see if this works better for them - whether they keep it or revert back to the old pricing.
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Steven Poole: Free your mind The results of author Steven Poole’s experiment in giving away one of his books for free. Explores the benefits and drawbacks of free content.
Mar
28th
Fri
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It Should Be Free?

Interesting article from Daniel Jalkut (via Dave). Identifies five types of transaction:

  • Pure Payment
  • Subsidized Payment
  • Pure Charity
  • Subsidized Theft
  • Pure Theft
Which method are you using with your customers?
Mar
6th
Thu
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New pricing for Litmus We launched our new price plan yesterday. The feedback has been good so far, so hopefully we made the right call.
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Split testing your pricing

Another interesting discussion on the BoS board. Worth taking the time to read the thread, but the most interesting snippet for me was:

 ”Amazon has run A/B pricing experiments, and learned the hard way that customers *do* find out, and *are* upset about it. So their new policy is: if they run a price experiment, you’ll always get the lowest price in the experiment, when you get to the checkout.  (So you might click on something with 5% off - when you get to the checkout, it’ll give it to you for 10% off, because that was the other offer that you didn’t see).” -AndrewMcG

Mar
4th
Tue
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buying attention is a marketing expense, and one way to budget for that is to deduct it from the cost of your product
— Seth Godin
Mar
3rd
Mon
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New Litmus price plans page (launching very soon)
New Litmus price plans page (launching very soon)
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Old Litmus price plans page
Old Litmus price plans page
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Wired: Why $0.00 Is the Future of Business