We are in a process of launching a new start-up. It is a web based software application/platform providing business networking services. Although not directly comparable, however for the illustration of this scenario, I use the well know example: linkedin.com .
We plan to launch this application as "freemium" (free to all with payable premium content). Unfortunately, I am not able to give much detail about the business itself at the moment, however we believe that premium content would add enough value for some of the users to be willing to subscribe.
Currently we are in a process of putting together a business plan and realised we didn't really pay much attention to aspect of our start-up. Since it is quite important for us to get the pricing right as well crucial to work out the finance in our business plan, I would kindly like to ask the business community for your valued opinion.
We would like to target small-medium enterprises as our main market and believe our software could help them generate additional leads and help increase their revenue (especially when subscribed as premium user).
What do you guys think would the optimal price range for a premium content that an average SME would be willing to pay for a service that would be beneficial to generating additional revenue for their business?
- What do you think would be most desirable subscription time frame? Wold the standard 1 year be desirable and what do you think are pro's and con's of 1 year subscriptions?
Your opinions or real life examples with setting up the pricing for your web based business are greatly appreciated.
Thank you very much and we are looking forward to your comments.