August 15, 2010

the freemium myth

Seth Levine on pricing models and the freemium myth: "You should understand very clearly what drives your own costs as you start to matrix out your pricing so you know what user behaviors cost you money. You should also understand (by talking to early users) what drives customer adoption, usage and lock-in of your product. And with all that in mind, be careful what you chose to put a tax on." Lots of great nuggets of wisdom in this post; worth reading in full.