How much to charge for your web application is a question with no right answer. You will never make everyone happy. Nor should you. I firmly believe that if you hear no complaints about the price then you are not charging enough.
Although you’ll never know for sure if your pricing is right, I can give you one example of a pricing model that is wrong. There is an online invoicing application that recently sent an email to all it’s users asking what they thought of being charged based on how much they invoice. I became very excited when I heard this because it meant that Less Accounting would be getting a whole new group of customers.
Here’s what they suggested:
$6/mo
$12/mo
$25/mo
$45/mo
$75/mo
$125/mo
$200/mo
I mean seriously, it’s so easy to invoice over $15K with one or two invoices. We see this all the time in Less Accounting. Is this worth paying $75/month? I don’t think so. The rational is that the software is being priced in the same manner as your credit card processing. Although I like the idea of paying more for using more, this is just ridiculous.
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