I have a handful of websites that are Directories for different businesses that provide a service. Im having a problem right now coming up with a decent pricing model for my launch.
1. I want pricing to be reasonably cheap. This project at best cost 480-500.00 to complete.
2. It could be month to month - But I prefer 9 months with 3 free months for all new members.
3. The directory itself is made up of 262 cities in the US. If people do sign up, Im sure they will want leads right away. If I cant deliver, since its new... I think they will leave, especially if they only paid for 1 month.
4. I have space for 2620 businesses. I would prefer to only have one page of results which could be enticing to businesses... Every business is on the first page. And the results when you search all rotate places1,2,3,4 etc.
5. My advertising is targeting a very large number of consumers.. But not service providers. The number of service providers is relevantly less at 320,000 while consumers is around 73 Million.
My dillemma is: If I set up payments for month to month, chances are people will leave if they only try 1 month. If I give too much away for free, (3-6 months listing free with paid 6 or 9 up front), my little revenue wont be much to cover advertising. Well maybe..
Whats the best way to set this up? Surely someone has done a membership before. Or maybe I need to really come out of my pocket more with advertising up front. The bad thing is, if Im targetting consumers.. And then they do show at the site, there could be no providers.. So I lose.. If there are providers and no consumers.. I lose too.
Finding the balance in advertising and finding providers is challenging.
Novashun7/23/2009 1:05 AM
Ive thought of some different ways I would like to fund and build a few applications and scripts for my business. We are a small company - Our business is Web marketing, develop some apps/scripts, and own about 43 Web Sites. Im trying to avoid a partnership at this stage.
1 Division of the company I have created is software/development. I have a programmer (Freelance/Contractor) that Ive been using and starting to get a little close to. Hes a bright guy, and I think it would be in my best interest to offer something for the scripts/applications he`s developing for me. My intention and reasoning are these. (Please help me if Im wrong or need some more information )
a) If I offer him a percentage of the Development Division within the company, say 4% of anything he has built for me, he has to agree to support the scripts until sold completely or if I should sell the business. So any fixes, version changes, or bugs throughout the life of the scripts and apps - He will do this.
b) Im not a technical guy, so if I were to pitch these scripts and applications to companies... I could do so.. But not the Techincal.. He would have to come along and pitch the technical.
I think this would motivate him with a 4% share per year... If I were a programmer I would want to discuss, explain, answer questions, and support my product I developed. The more money generated from the sales of this app - The more money I would make. Hes not quite an employee, Im not an employee owned company, and Im just a SP entity.
This has actually kept development costs down by offering him something other than thousands of dollars... We have discussed, nothing in writing yet.. And I dont know how or what to put in writing if I did.
How could I do this, has anyone ever did this, why is this good or bad? Would this be considered a Limited Partnership? If so, Im American, hes is from another Country.
Novashun7/16/2009 1:35 AM
I wonder if perhaps you`re getting caught up in the analysis, but not paying attention to what it is you want?
Remember that when people go to the store to buy a shovel, they`re not looking for a shovel. They`re looking for a hole.
Small ,Medium, Start up, GOOGLE or not - These are valid threats - Anyone have views on these?
" They have Bulldozers, while I have shovels to dig holes "
Im very analytical - What I want is: To generate as much revenue as my threats (my competitors) either the same way by providing quality, doing more business, with more competitive pricing, but I lack the longevity of the client retain they are getting. But my pitch to clients would be, Why are you paying someone month to month for this when I can build the entire thing for $XXXX ? That sells sometimes 35-40%-
My market is changing, changing, changing... They have folks that have built trust with them, invested money in them, and then they have them to pitch to because they are on a monthly basis...
Month to Month retaining clients (My Competitors): They are making clients pay an upfront fee and then charging them monthly fees to maintain. Their upfront Fee is as much as I would charge per website with promotion.
Need to immediately attack this, either join the rest or figure out a way to run a negative PR campaign against it. Once the client becomes theirs, they have them retained for quite a while. How much of the market is not theirs? How can I find out? Why and how can this work to my benefit if I follow suit? I don’t stand out from my competition anymore. We can offer them hosting cheaper, which will allow us to get year to year personal time to introduce products and services. However, would running a Negative PR campaign be worth it or just piss them off? I wouldn’t have to mention brands.. But is this the right approach?
Outsourcing is Risky:
Is it just as risky as having a full time employee? Although it’s cost effective, what should I do to get this in shape? The level of reliability on any employee needs to be weighed. At what point and how much work do I need before I get a FT designer? How do I judge when to hire a full time developer/designer? Will I ever need one? How much money will I lose if hire one when I have no work to give them? I lose nothing with a freelancer but I risk deadlines which leads to unhappy clients.
Novashun7/14/2009 5:02 AM
Hi everyone -
Glad to be here - Need lots of help with financial part of my business plan, estimating, and trying to figure out how to split up some of my company and give it to investors and partners. Its a rather large Web Company with 43 Websites to Start -
Any WebPreneurs... I welcome your help !
Thanks All - Best of luck in your continued success.