You’ll see variations on this theme all over the internet. Radiohead have had the backing of a major label, have built up a considerable fan base as a consequence, and are leveraging this advantage when offering us the opportunity to name our own price when buying their new album. No one without this advantage could afford to market themselves in this way.

Let’s leave aside the fact that this process isn’t a new thing, and that the myspace phenomenon quite clearly contradicts this notion.

I think that what lies at the heart of this argument is the supposition that the old structure could miraculously transport a band / composer from their current unknown status to globally recognised status overnight.

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If you’re confident that your software does what it says on the tin, why not charge a proper price for it ? The fact that you’re practically giving away your work and expecting people to cough up of their own volition is a certain indicator that what you’ve produced is of little use.

This is the implication of some of the comments that are made regarding the pricing structure of my online time tracking and task management software.

Various people have suggested that if you try to sell a product too cheaply, propective buyers will assume that the price reflects the quality of the product. What’s missed is the fact that, although the basic rate is only £2.50 per month for unlimited use, this basic payment is required only to verify that an account is still active. The actual monthly payment made by any one user is defined by that user - the user is encouraged to assess the product’s value to them.

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This question is one of the first to crop up whenever I describe the pricing strategy for my online task tracking software. Business people in particular are incredulous. Giving a service away for free is readily understandable, but trying to make money by encouraging users to pay whatever they like ? No, there must be an ulterior motive.

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