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Donationware is rubbish

Posted Monday, January 21st, 2008, under what if

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 web based time tracker.

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.

How do you assess a product’s value to you ? Well different products require different methods of assessment. In the case of adderuppa the process is pretty simple, as illustrated below.

I am a freelance php programmer. Adderuppa’s first phase was developed during 2003, when I first went freelance, to help me work out whether I was charging for my time correctly. In some instances I was, but at first, most of the projects I worked on took me longer than quoted, and so my real hourly rate fell some way short of what I thought I was charging. Sometimes I was earning only half of what I should have been.

This was painful to realise at first. However, with constant honest use, I began to notice my real hourly rate catching up with my desired hourly rate. The history of recorded projects and tasks act as a reference point when quoting for work, to the point where I am almost 100% accurate with my quotes now.

This simple process of cross referencing projected time with actual recorded time has meant that I bank several thousand pounds more each year than I did without it. That extra income is adderuppa’s measurable worth to me, and I would be happy to pay a proportion of that amount each month to maintain that accuracy. Some months that proportion might equate to £20, some months it might equate to £5.

So, I hear you ask, why not just set the monthly tariff at an amount that most people will be able to afford ? If it’s going to save everyone lots of money, everyone will be happy to pay an average amount.

Well that average would be extremely difficult to figure out. The product can be accessed by people from all over the world, dealing in a multitude of different currencies. £5 per month would be prohibitively expensive when translated into some of those currencies.

Better to free my head of the worry of pricing a large user base out, and allow those that wish to account for their savings show their appreciation in any way they see fit.

One Response to “Donationware is rubbish”

  1. keybord says:

    right on dudes - properly appreciating the philosophy and hope it serves you well.

    Bring on the the pricing revolution!

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