business models

As a general rule: with IAPs, go big or go home. Jeremy Olson (via Yep, paid apps are dead « Tapity )

The future of sustainable app development is to give away as much value as possible and empower those who receive more value to pay more for it. David Barnard (via Blog: The Sparrow Opportunity )

The most precious commodity is user time (…) Revenue follows user attention, not the other way around; unlike money, there is a finite amount of minutes in the day, and a finite amount of users. To put it another way, attention is a zero sum game (via Instagram Direct, Twitter DMs, and the Social/Communications Map ) This certainly applies to all ad-based businesses, where volume is key! But there are other ways to build successful businesses though…

Subcompact Publishing — by Craig Mod Zip drives ate floppies. CDs ate Zips. DVDs ate CDs. SD cards ate film. LCDs ate CRTs. Telephony ate telegraphy. Text messaging ate talking. Tablets are eating our paper … Great analysis of the disruptive effect of The Magazine in the publishing industry.

Free is only a tactic, not a business model. Free: a Tactic, not a Business Model | Tech News and Analysis

Redeye VC: The Penny Gap … my primary point was to state that many people (mistakenly) believe that getting a consumer to go from “free” to $1/month is just as difficult as getting someone to go from $1 to $2/month. I think that there is a huge burden to getting a consumer to pay anything — and entrepreneurs tend to underestimate the level of effort.

(…) 3 different types of products out there: In the first case, we have something like purchasing food. Immediately that hamburger has a lot of value (you’re hungry right?) but after you eat it, the value is largely gone. In the second case, there are products that deliver the same amount of value to you every day. A newspaper subscription is a great example of this. Every day it shows up at your door and you get the same value from it each time....

I am done with the Freemium Business Model « Tyler Nichols Weblog I have come to the realization that most people who want something for free will never, ever think of paying you, no matter how valuable they find your service. (…) Free customers are higher maintenance than paying customers. Great discussions and points of view in the comments.