Joel on Software on Pricing – Camels and Rubber Duckies

The reason I bring this up is because software is priced three ways: free, cheap, and dear.

  1. Free. Open source, etc. Not relevant to the current discussion. Nothing to see here. Move along.
  2. 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.
  3. 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 –)

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