Web Strategy Micksup

Mick Liubinskas on technology, community and business models.

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To Charge, or Not To Charge, That Is The Question

February 7th, 2008 · No Comments

gmail 2 gig

So I’m exactly double what Google promised me early on with Gmail. 1,000 MB offer and I’ve shot past. But they haven’t even bugged me for money. In fact, they have said that I can triple from now and still be ok. And by then it might be 10 gig.

Nuts?

I’m sure the business guys out there are thinking that they are crazy for not charging. “Even if only 1% of people pay, that’s a few million bucks a year!!” But decisions about web apps are not so simple. You’re not just saying yes to 1% and a few million. You are also saying no to somethings too.

You are saying;

  • “NO” - to the innovators who recommend Gmail to their friends.
  • “NO” - to people (like me) who use Gmail as a platform.
  • “NO” - to 5 billion CPC impressions which would make $2 ECPM, coming out at $10M per year (Mickstimate)
  • Plus, the cost of administering the payments…. etc, etc.

So it’s never as simple as make money or not make money.

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Tags: Business Models · Startups

 

 

 

 

 

 

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