We are a startup developing an application that can
add a new dimension to the way users browse the World
Wide Web.
We have been debating the issue of positioning our
application as a product or as a on-line service .
Secondly we are trying to figure out the business and
revenue model i.e Free Vs Fee
Would like to invite the opinion of the group on the
various positives and negatives involved with both
these options from your own experiences as well as
industry trends. Since VCs are going to be our initial
audience ( for the next round of funding) how would a
VC view the issue of Product Vs Service and Free Vs
Fee.
To explain further about us :
Technologically we can have the product on our server
and have users visit our site and use it or we can
allow users to download a Java application which would
reside on their m/c, in which case they would bypass
our web-site once they download the application. We
also have the option to split the application where
part of it resides on the users m/c to improve
performance and the rest on our web-site
My question is, from the business model angle which is
better?.
The other question in my mind is how many Internet
users are willing to pay for an application no matter
how good it is? How many of us would pay to use yahoo,
hotmail, i-drive or for that matter the Netscape
browser? Are there any successful examples of
companies charging fees for applications targeted at
the common Internet user not the corporate market.
I have tried to put my question without giving out
much about the concept (for obvious reasons) but hope
it is enough to help you give your opinion.
Please advice,
BTW, We are looking to add to our Board of Advisors
experienced & networked individuals as well as
technical gurus and would be keen to offer stock in
return for being able to occasionally task on your
mind and contact network.Those interested drop me a
line and we can talk.
Regards
Tom