How to Determine How Much to Charge for Your Software

Setting the right price point can make or break your business. June 10, 2019 5 min read Opinions expressed by Entrepreneur contributors are their own. Anyone who has ever had to comparison shop for a business app knows that prices are often all over the map. Two programs that provide roughly the same features can have wildly different pricing. Where do these prices come from, and what should you use as a precedent for pricing your own software? Related: Why Some Prices Are More Right Than Others The simple fact is that there’s no “best price” for any piece of software. It all depends on your business model, your potential audience and customer base and your competition. Determining your ideal price point means analyzing these and other factors. Single license or monthly fee? One of the first questions to ask yourself is whether you’re going with a single one-time purchase for a license, […]

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3 Steps to Finally Charge What You’re Actually Worth

You’re at a cocktail party. Someone approaches you and says: “Hey, I hear you’re a _____ and you’ve do _____ for a living. I have this problem I need help with. It’s right up your alley. Here’s my question:___________________?” What do you do? Whip out your Freshbooks Mobile App and crush out an invoice for the soon to be rendered services? Of course you don’t. This is what happens: A spark lights in your gut. “Someone just showed interest in my passion project!” Your posture shifts. Spine tingles. Pupils contract. This is your element. This is your moment. THIS IS WHAT YOU’VE BEEN WAITING FOR! You confidently launch into conversation… …and vomit free advice all over your new friend. Contrary to the setup, this post is not going to discuss the how and why of giving free advice. Nor will it be about the Freshbooks app’s ability to seamlessly invoice […]

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Justifying Premium Prices for Your Premium Product (FS296)

What are the variables we need to think about when we decide on pricing? How much of an effect does pricing have on certain types of customers? Can pricing a premium product at a higher mark actually increase sales? The price tag that you place on your product or service has an obvious effect on your income and revenue. It also has other less obvious effects and that’s what we’re talking about today. We want to give you a bunch of new ways to think about pricing smartly and what it can do for your business! In this episode, we discuss what influences our perception of prices, value hierarchies, redefining what is actually being sold and the relationship between prices and prospective customers. We also get into some exercise and questions that might help you think about these concepts in new ways. Today on the show we are joined by […]

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How to Price Your Product for Long-Term Success

Here are five things to consider when you set the price for your product. December 7, 2018 6 min read Opinions expressed by Entrepreneur contributors are their own. Pricing your product is one of the most important decisions you’ll make when launching a business — yet it’s also one of the most neglected. All too often entrepreneurs spend hundreds of hours designing their products, and not enough on the nuts and bolts of the economics involved. Related: 10 Psychological Tricks to Boost Your Website’s Sales It may seem like a straightforward process, but the business impact is critical. Price affects everything in your business from profit margin to cash flow to hiring, so it’s vital to put in some serious thought. It may sound easier to slap on a number and fix it later, but shooting out of the gate with improper pricing can lead to poor margins, future challenges and even […]

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SPI 238: How Marco Schwartz Built a Business Based on the Internet of Things

I love sharing success stories from Smart Passive Income Podcast listeners. I’m constantly amazed at the creativity and drive of this community, and this week’s guest is no exception. Here today is Open Home Automation‘s Marco Schwartz, an online entrepreneur who teaches others how to program their own home automation systems using simple tutorials and tools. Before he started his business, Marco loved using his programming expertise to connect different home automation systems for even greater ease of use—building an “Internet of Things,” as it’s often called. He began building tutorials for his favorite projects and posting them online for other passionate programmers to learn. Within a year, OpenHomeAutomation.net went from 20 visitors a day to 2,000. Marco found success by consistently providing value to his audience, optimizing his website and business processes, and carving out space in a niche he loved. His story is the perfect lesson for online entrepreneurs everywhere—just listen in! Thanks […]

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SPI 222: The Right Products at the Right Price Point with Ramit Sethi

Ramit Sethi is back on the show this week, and as usual, he’s brought some serious strategy with him. Today, he’s talking all about matching your digital products or services with the perfect price point for your audience. I discovered Ramit and his blog back in 2006, before I became an entrepreneur myself. He taught me valuable lessons about online business, building wealth, and designing an income. Ten years later, he continues to teach me so much! I’ve invited him on the Smart Passive Income Podcast twice before (for Episodes 92 and 170), and it’s my pleasure to have him back today. You’ll hear Ramit’s hard-won wisdom on identifying your audience’s pain points, designing the product they crave most, finding qualified customers, and guiding them through to purchase. Ramit also gets honest about pricing your products, the danger of discounts, and how often he sees entrepreneurs fail to value their products appropriately. This interview is packed full of expert […]

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