Pricing is a powerful level of growth. Most of the largest platforms grow by giving things away for free. Others charge thousands of dollars to each month and have multi-million dollar Annual Run Rates while growing their businesses.
Psychology experiments have shown that the more people pay for something, the more they value it. People given a placebo pill were twice as likely to have their pain disappear when they were told that the pill was expensive.
A quick overview of the “Minyo Model” of building desirable products people are bound to pay for.Long story short — I’ve been (willingly and uncontrollably) building products for the better part of the past 20 years. Many (most, to be…
Software economics do not behave like sprockets. In sprocket production, much of the product cost is variable based on the number of units produced. This is due to costs having a lot to do with raw materials/inputs of the product.
