April 18, 2011
The reason I bring this up is because software is priced three ways: free, cheap, and dear.
- Free. Open source, etc. Not relevant to the current discussion. Nothing to see here. Move along.
- Cheap. $10 – $1000, sold to a very large number of people at a low price without a salesforce. Most shrinkwrapped consumer and small business software falls into this category.
- Dear. $75,000 – $1,000,000, sold to a handful of rich big companies using a team of slick salespeople that do six months of intense PowerPoint just to get one goddamn sale. The Oracle model.
(Full Story: Joel on Software on Pricing – Camels and Rubber Duckies -)
