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January 31, 2011



Yes, great thoughts. I'm a fan of having a small variety of merch/products that are $0 (not necessarily free), which then point to a few premium, higher priced items on the back end. I agree, running the numbers a few ways to figure out the best way to set something up like this is key.

Also key, however, is consistently connecting with fans to create a reason to buy. You can have all the products in place, running in the best cost/profit ratio, but if you're not constantly creating meaning with people, you're not going to provide any incentive for people to do business with you. And there's a lead time to this. You don't have enough influence with people to get them to buy (or even take something for $0) on day one. It takes time to create this relationship. Which is something that should be considered when running the numbers.

Thanks for the advice, I was inspired by this post!


The other thing about selling something for $100 is that you have less customers which means less hassle.

Cheap lead in offers can work if you have an up-sell right away, like offering a song for $0.99 and then an album and t-shirt bundle right after.

Nice post, I just tweeted it ;-)

- Chris


I think something to factor in is ad revenue. Although I have to admit I'm not exactly sure how lucrative advertising on mobile platforms (let alone in-app advertising) is, I think it should be accounted for, no? Many of the apps that are "free" or .99 cents are loaded with varies adverts throughout the app.

Just a thought,

Interesting read for sure though.

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