What I was touching is when I move from a free plan to a paid plan. When the company took the risk. I know a lot of rich people who like to start lean simply for the sake of seeing proof of concept. They have millions in their bank yet they ask their cofounder to chip in £5,000 on the idea.
So the company offering the product took the risk (and the cost associated) of seeing if the idea works. But then, what I say is that they should charge enough on the premium to cover for all the freemium.
You replied to several comment with this anecdote about "rich people who like to start lean...They have millions in the bank yet ask their cofounder to chip in £5,000 on the idea."
What's the point of this illustration? Are you saying this is a jerky thing for rich people to do? Or is there some other lesson here? I'm honestly confused, and it's weird to see it repeated through so many threads.
> I didn't have in mind donation systems
You say to go as free as much as possible, to get people "on your side". This is precisely what happens with donationware. But people get PISSED when donationware turns paid. They don't jump for joy and open their wallets. If this is the case with donationware, why would it be different for freemium products?
Nono, don't get me wrong. The point with rich people (which I've reused because I thought it fit those conversations) is that even if you have millions in your bank account, you imagine businesses with their own 'pots'.
I.e. even if I can invest say £100,000 into this business to jumpstart it, I'll first see if it can make some money by itself, just as if I've have had nothing. So I won't buy the £5,000 hardware (just an example) until I made £5,000 profits. That means whatever expenses the business made are paid from the same pot — the one with money the business generated.
Maybe after the business reached a certain threshold (and thus proof of concept), these millionaires that I've known will properly invest.
If that still didn't make sense, imagine you'll be looking for investment. You won't go and ask for it until you've got proof. In the millionaire case, it just happens to be the same person who's becoming an investor.
Regarding the second bit, I'm saying this: it can also be freemium and at the same time a premium plan. Or more premium plans
IMO, the example would be clearer if you left off the cofounder bit. Otherwise it puts the focus on their relationship and makes the rich guy seem like a jerk.
I still don't see how this anecdote is particularly responsive to the various comments it was used in reply to. So you're saying millionaires want to grow businesses responsibly? Great! What does that have to do with whether you feel joy in paying them money — which was what my original comment was about?
Oh I understand what's unclear now. So here's what I'm trying to connect
1. These rich people like to start lean (some of them)
2. This way of conducting business gives equality of opportunity
3. Therefore, these lean-starters will be drawn unto them and use them. Eventually, when they invest in their own ideas (remember what I said that it just so happens that the investor is themselves?), they bring their big money to this company
Honestly, not really. I've read it a couple times and run it by a friend, and we don't understand what you're getting at. But thanks for taking the time to try to explain.
So the company offering the product took the risk (and the cost associated) of seeing if the idea works. But then, what I say is that they should charge enough on the premium to cover for all the freemium.
I didn't have in mind donation systems