One of the most difficult decisions an entrepreneur has to make is how to charge the right price for their service or product. And that, not by accident, is why so many try “build their presence before charging” or use ad revenue as a way to avoid a strong business model.
I am often reminded of this hesitation when I talk to people about their business ideas. They simply don’t know or don’t want to find out if anyone wants their cherished vision. There is a good comparison of the difference on Smoothspan and several good links to other references. But that still doesn’t answer the question – how do you price a product? There is a good, quick read on the subject – Don’t just roll the dice. I found that reference through Ash Maurya’s excellent Running Lean.
And there is my point – there is a method to the process of bringing a product to market. There is a tested, methodical way to go through the steps, identify a need with value, develop customers, and scale. If the need has value, they will pay. If they will pay directly for the product or service, they care. It solves a problem. If the problem is significant, the value is much higher to the paying endusers than advertisers. Advertisers only want volume, numbers. Buyers want value, solutions.