Mark Evans issued a blog post yesterday titled Pay for a Service? How Radical in which he predicts tough times ahead for startups offering free services and whose business models are premised on advertising. He makes the point and provides examples where actually charging for a valuable, useful service isn’t such a radical idea.
As someone who subscribes to several paid-for services herself, and who enjoys earning a dollar, I couldn’t agree more.
Taking Mark’s idea a little further, what the dot.com bust revealed to us about the legitimacy of crazy valuations, the current credit crisis has revealed to us about basic business common sense – companies need to make money to survive. Period.
Only a few short months ago it was commonplace to hear snickering when a senior person in the company was asked about the “business model”. Who had one? Who needed one? seemed to be the stock answer.
As inevitably happens though, when hubris combines with artificial economics to push simple, fundamental business principles aside, they always come roaring back with a vengeance to the “surprise” of many. Like thousands of others, my bet is that a lot of those companies are hitting a new (old) reality and many will get swallowed up or won’t survive. It’s the business circle of life.
The great news at AideRSS is that we’ve got the best of both worlds. While we’ve had the luxury of building a free service and engaging the interest of an awesome user base that has given us excellent response and feedback, we’ve also had our eye keenly trained on potential revenue models (and no, not advertising).
We’re locked and loaded, and totally excited about what we plan to launch this year. No worries — the feed management system currently enjoyed by our fan base will always be free. Our new services will be different but related, and we hope will provide the kind of value and usefulness that will mean existing and new users won’t hesitate to sign up on a paid-for basis.
Our goal is to be around for many more years, both because we have an amazing service offering, and because we are financially sustainable. Stay tuned…