clipped from: www.instigatorblog.com   

For any entrepreneur starting a web business this is a critical question. If you’re building a web application for consumers you’re probably thinking, “I’ll give it away for free and sell advertising.” So be it. As much as I dislike that model, it’s the de facto one for consumer web apps. For business-to-business web applications, the model should be different. And I’m a strong believer in what the guys at 37Signals espouse, which is very simply, “charge for your web apps.”


But what should you charge?

Thanks to Tom Markiewicz (via Twitter) I came across On Pricing.


On Pricing is a micro-blogging site (using Tumblr) to grab information about pricing web apps from around the blogosphere. It’s run by Paul Farnell, founder of Litmus, who wrote a great article on pricing web apps awhile ago.


Pricing web apps isn’t easy.


Keep your pricing simple.

Highlight the best value.

Show your pricing.

Compare your pricing to competition.

Compare pricing to other web apps.

Test and re-jig over time.