OnDemand WTP Pricing Research

If you are going to charge for content | Iterative Path

If you are you going to charge for content it pays to start to with the customer segments that value your content (more than other alternatives available) and are willing to pay for that value. Recently Mathew Ingram of GigaOm wrote about a proposal that involves dynamic pricing

A model could work like this: The piece costs $1.99 for the first 5,000 articles sold, garnering $10,000 in revenue [and] once that threshold hits, the price adjusts dynamically to maintain at least $10,000 in overall revenue, but adjusting downward against the paying population as more and more readers commit (which also earns Esquire additional advertising revenue). A ‘clearing price’ is set, perhaps at 50 cents, after which all profits go to Esquire.

Let me tell you at the outset that I do not like this for one primary reason – it ties price to your revenue goals vs. value to customers. That is as bad as cost based pricing. I does not merit further discussion just for that reason but let me dissect it anyway.

Read complete article here:

If you are going to charge for content.