Alternative Ways to Price Your Web App.

01/19/10 Paste Interactive

There are lots of ways to go about pricing your web application, and there may not be a single right answer for any single app. When considering pricing, it’s important to evaluate all the options. Here are a few less traditional methods we’ve been discussing.

Charge once.
Great for building momentum. Great for quick revenue. Maybe not so great for long term earnings.

Advertise within your app.
We’ll see more and more advertising fueled apps. It can work if done well.

More customers = higher pricing.
The more customers you get, the more you charge. Have to start really low… Pinboard does it.

More customers =  lower pricing.
On the flip side, the more users you have, the more money you’re making, and more money helps to take care of other costs (like hosting).

Charge based on a granular sliding scale.
A sliding scale is a cost based on your customers’ ability to pay. Usually apps have predefined tiers- but do they have to?

Pay What You Think it’s Worth.
Lots of restaurants swear by it. Desktop software has embraced it for ages. Why not web apps?

Give power through participation.
There’s a site called stackoverflow.com, and it nicely demonstrates just how cool this can be.

Whatever works
You don’t have to reinvent the wheel with your pricing, – but it’s important to think about which option fits best. Before you commit to “big,” “bigger,” “biggest” pricing plans, – at least take a few minutes to think if it’s really the best way to price your app.