Comments on: The Downside of Free http://www.sitepoint.com/blogs/2008/11/19/the-downside-of-free/ News, opinion, and fresh thinking for web developers and designers. The official podcast of sitepoint.com. Sat, 07 Nov 2009 23:35:20 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Ann Warner http://www.sitepoint.com/blogs/2008/11/19/the-downside-of-free/comment-page-1/#comment-847150 Ann Warner Thu, 11 Dec 2008 17:16:15 +0000 http://www.sitepoint.com/blogs/?p=3200#comment-847150 very informative post, thank you! Ann <a href="http://www.iperinfo.com/" rel="nofollow">iperinfo.com</a> very informative post, thank you!

Ann
iperinfo.com

]]> By: Kevin http://www.sitepoint.com/blogs/2008/11/19/the-downside-of-free/comment-page-1/#comment-845255 Kevin Mon, 08 Dec 2008 05:08:07 +0000 http://www.sitepoint.com/blogs/?p=3200#comment-845255 There are many different variants of Freemium that are emerging, some of them are covered in my recent blog: http://montclairadvisors.com/blog Cheers, Kevin There are many different variants of Freemium that are emerging, some of them are covered in my recent blog:
http://montclairadvisors.com/blog

Cheers,

Kevin

]]> By: wanted http://www.sitepoint.com/blogs/2008/11/19/the-downside-of-free/comment-page-1/#comment-835165 wanted Tue, 18 Nov 2008 20:50:11 +0000 http://www.sitepoint.com/blogs/?p=3200#comment-835165 I think you are missing a point somewhere. I don't think he means 'each time you double your users' but each time you double the hardware (in his case databases and web servers). It doesn't make sense to assume a web application costs 1$ per users. Having 2 users vs having 4 users doesn't change a thing on the hardware (only support). To make it simple, a server which could hold 20,000 users (hosting, all included..) Costs XXX$ /year. If you have 1,2,4,8,16,32,... or 19,999 users it's the same cost (except support). However it's true that if you double that 15,000 users you'll endup with double hardware, larger infrastructure and much more support. In a free (no cost) environnement, the support ain't costing a lot as user don't pay and so don't expect to be serve as well as the paying version (which surely gives better support). So the free to pay model is a great way to convert users. Having "build,operated and sold" many websites using this scheme, I know for a fact, what you've described ain't the reality. Or at least was never anywhere close to my reality. *my two cents* G I think you are missing a point somewhere.

I don’t think he means ‘each time you double your users’ but each time you double the hardware (in his case databases and web servers).

It doesn’t make sense to assume a web application costs 1$ per users.

Having 2 users vs having 4 users doesn’t change a thing on the hardware (only support).

To make it simple, a server which could hold 20,000 users (hosting, all included..)
Costs XXX$ /year.

If you have 1,2,4,8,16,32,… or 19,999 users it’s the same cost (except support).

However it’s true that if you double that 15,000 users you’ll endup with double hardware, larger infrastructure and much more support.

In a free (no cost) environnement, the support ain’t costing a lot as user don’t pay and so don’t expect to be serve as well as the paying version (which surely gives better support).

So the free to pay model is a great way to convert users.

Having “build,operated and sold” many websites using this scheme, I know for a fact, what you’ve described ain’t the reality. Or at least was never anywhere close to my reality.

*my two cents*

G

]]> By: learn math http://www.sitepoint.com/blogs/2008/11/19/the-downside-of-free/comment-page-1/#comment-835075 learn math Tue, 18 Nov 2008 17:31:03 +0000 http://www.sitepoint.com/blogs/?p=3200#comment-835075 Actually, the quote you began with says that the cost for maintaing the SITE grows 6 fold, not the cost of each user - I think it's a powerful enough example without doubling his numbers to say that the cost of the site grows 12 fold. If Frind isn't exaggerating (and from my experience , I think he is), you certainly are. Actually, the quote you began with says that the cost for maintaing the SITE grows 6 fold, not the cost of each user – I think it’s a powerful enough example without doubling his numbers to say that the cost of the site grows 12 fold. If Frind isn’t exaggerating (and from my experience , I think he is), you certainly are.

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