Comments on: Business plan – show me the money? http://blog.skedsheet.com/2009/09/03/business-plan-show-me-the-money/ Where we talk about the product, calendars, organization, and business Fri, 10 Jun 2011 11:45:15 +0000 hourly 1 http://wordpress.com/ By: Ted Pitts http://blog.skedsheet.com/2009/09/03/business-plan-show-me-the-money/#comment-66 Thu, 03 Sep 2009 15:35:36 +0000 http://skedsheet.wordpress.com/2009/09/03/business-plan-show-me-the-money/#comment-66 If you design the pricing model so that 5% of users think it’s worth paying for, you’re doing it wrong. This is not a social media app where you can monetize non-paying users some other way. The non-paying users are simply leads in the sales process. There must be important & valuable features only available to paying customers.

Also, I’m guessing your numbers for the ongoing cost are too low. I don’t think it’s reasonable to assume the cost is less than 1 full time employee, even though it’s spread out across multiple people. But I also don’t think it’s important (or possible) to recoup the development cost in the first two years. The important point for the first few years is to become self-sustaining.

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