The Fine Line Between Free and Profit

filed under syncPEOPLE · 2 comments in the original

When building a product, one of the most difficult decisions to make is just what you charge for. It's really a critical decision since the choice that's made will completely dictate how the product is received and by who.

There's a few models that clearly exist, though I don't know which to advocate since it all depends on your business model. So here they are:

dotBomb Method - give it all and make it up in volume (eyeballs, click-thrus, what have you)
Free Trial Method - give some or all of it away, but just for a limited time
Lite to Heavy Method - give away the basic stuff, get them hooked, sell the heavy side
Pay-to-Play Method - give nothing away, you gotta be in it to win it, that sort of thing

These thoughts were inspired by a decision made by the Basecamp team and the subsequent flap.

Of course there's lots more out there and everything in between. What models are you using? How did you decide?