Interesting Pricing Model? Add $0.1 per new customer

[obue]

I don't remember where I saw this - it was some kind of internet community that charged their first member $0.01, their second $0.02, their third $0.03 and so on. So at a hundred members, it cost $1, at a thousand members it cost $10 and so on. A great incentive for signing up early which helps the community reach a critical mass, while also letting the percieved value of joining increase steadily along with the price.

I think this could be tried for a product launch, but maybe in increments of $0.1 instead of $0.01. For a download product, what's to lose?

[Sven]

Interesting indeed! I think I saw a variation on this somewhere too. But it may need some complicated payment automation...

[AlexMoen]

it's an interesting idea and could work if you tested it pretty heavily. You'd need to take into account what the perceived value is and how that fluctuates with x amount of additional customers, as well as how the price compares to competitors.

Otherwise, I bet it could work for a single product launch to get your name out there, and then follow up with something else once you've acquired a solid base and the sales start to plateau.

[officer_dibble]

I see a variation on this all of the time for internet marketing products - 1st 20 copies at $10, 2nd 20 at $20 and so on.