Comments on: Bad times ahead for most start-ups? http://www.QuebecValley.com/2008/11/04/bad-times-ahead-for-most-start-ups/ The Internet Startup Valley in Quebec Tue, 09 Jun 2009 00:41:37 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Denis http://www.QuebecValley.com/2008/11/04/bad-times-ahead-for-most-start-ups/comment-page-1/#comment-2674 Denis Tue, 04 Nov 2008 17:56:03 +0000 http://www.QuebecValley.com/?p=182#comment-2674 You're right Mark. Sure, Oracle might have ads on their web site but that's probably 0.00001% (if not even less than that!) of their revenue. End users are greedy and like free stuff but companies usually don't mind paying for a quality product as long as it saves them money in the end. It all comes down to what pain you can relieve from the buyer. The bigger the pain, the bigger the cost? You’re right Mark. Sure, Oracle might have ads on their web site but that’s probably 0.00001% (if not even less than that!) of their revenue.

End users are greedy and like free stuff but companies usually don’t mind paying for a quality product as long as it saves them money in the end. It all comes down to what pain you can relieve from the buyer. The bigger the pain, the bigger the cost?

]]> By: Mark MacLeod http://www.QuebecValley.com/2008/11/04/bad-times-ahead-for-most-start-ups/comment-page-1/#comment-2673 Mark MacLeod Tue, 04 Nov 2008 17:04:16 +0000 http://www.QuebecValley.com/?p=182#comment-2673 It takes serious capital to build an ad-based business. And if your business depends on the general CPM rate (vs. a higher rate that comes from having a highly segmented and targeted audience) then you're in for a World of hurt. Companies should not be shy to get paid for offering value. I'm in a freemium business now. Free is important, but when we launch paid, we will pushing to build our paid user base. It takes serious capital to build an ad-based business. And if your business depends on the general CPM rate (vs. a higher rate that comes from having a highly segmented and targeted audience) then you’re in for a World of hurt.

Companies should not be shy to get paid for offering value. I’m in a freemium business now. Free is important, but when we launch paid, we will pushing to build our paid user base.

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