« Mixed Signals on Skype With T-Mobile | Main | Skype, Nokia and Mobile Integration »

April 19, 2009

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

Andy Abramson

Good points Brad, except, declining market for advertising dollars, driving price down, with less desire for "may be our market" buying or tolerance.

Second, declining VC market means fewer dollars to play with and shorter cycles to show traction, delivery, conversion, cash flow, profitability path.

Brad Templeton

The problem is this. If you've got competition, it is likely the competition will offer their product for free, paid for out of investor's money. In this case they don't plan to give it away forever, but they do plan to get market dominance away from you. Even if their product is inferior to yours, if they are free and you cost money (with free samples) they are going to own the market.

If the product has any network effects (as most communications and social media products do) then you are doomed. You are left offering free too.

This even applies if you have no competitor, because if you show success charging money, you will attract a free competitor, perhaps an inferior one.

So what's your option?

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Working...
Your comment could not be posted. Error type:
Your comment has been saved. Comments are moderated and will not appear until approved by the author. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Working...

Post a comment

Comments are moderated, and will not appear until the author has approved them.

Your Information

(Name is required. Email address will not be displayed with the comment.)

Blog powered by Typepad
My Photo

Andy In The News

November 2022

Sun Mon Tue Wed Thu Fri Sat
    1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30