Changed my business model

Discussion in 'General Marketing' started by casper, Aug 29, 2006.

  1. #1
    Hey guys,

    lately I've been receiving different emails from people saying; "Wow your service is great, you offer much more stuff in your free service compared to others."

    Great for them, but I need to receive money somehow. Therefore I redesigned my model. The mailforms for the free service contained no ads at all, it now contains a small banner after form submission. I also require them to add a linkback from their website to mine.

    I also changed the layout a bit. old vs. new

    I'm also thinking of adding a "user review" box containing quotes from satisfied customers.

    My only concern is; Did I do the right thing to monetize the free service a bit? This domain is one year old and has build up a "totally free form mailer reputation", will this completely ruin it? My plan is to entice free customers into purchasing the premium service.

    grz
     
    casper, Aug 29, 2006 IP
  2. kuepper

    kuepper Peon

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    #2
    That's the best way to go - start out free, then add an OPTIONAL premium service. Be sure to keep the free option there so existing users don't get angry, and keep expanding your offerings with the premium services.
     
    kuepper, Aug 29, 2006 IP
  3. jg123

    jg123 Notable Member

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    #3
    Site need to make money somehow or they just close down. There are many discussions of this type in the directory section about the longetivity of free directories. Some customers might get angry but unless you are doing it for charity, chances are you want to earn something from it.

    good luck.
     
    jg123, Aug 29, 2006 IP
  4. monkichi

    monkichi Peon

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    #4
    I think it's great. If you still want a 'totally free mailer service' reputation, yes, you'll still get it. Because you still offer a free service, right? But you just add another option -better option- for people who need the better service.

    Like yahoo mail. It's a free. People know it and it has been a reputation. But it also offers a premium (paid) service. You are doing the right thing, I think!

    Monetize something free a bit is not a big problem for people using it. People will realize that the website need something to cover at least hosting and doman fees. Good luck to your site. Once again, it's great!
     
    monkichi, Aug 30, 2006 IP
  5. svajdlenka

    svajdlenka Well-Known Member

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    #5
    It is OK. That is a normal evolution in this business.
     
    svajdlenka, Aug 30, 2006 IP
  6. sundaybrew

    sundaybrew Numerati

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    #6

    Yea, that is a good way, I agree as well, :)
     
    sundaybrew, Aug 30, 2006 IP
  7. casper

    casper Guest

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    #7
    Thanks for the feedback. I've added some bonus features to the premium service as well :)

    grz
     
    casper, Aug 31, 2006 IP