Web 2.Clueless

Josh Williams, responding to some clown who thinks to be a successful “web 2.0” company, you have to charge in micropayments:

Bob says our pricing strategy is “out of this world,” and rips our Gold plan for charging a business $24 a month to send up to 250 invoices. Let’s do some math. Our Silver plan cuts off at 50 invoices. So if you’re on the Gold plan that means you’re typically sending over 50 invoices a month. 50 invoices at $.50 a pop (as Bob suggests) would cost you $25. Then, we only would make 30 cents on the dollar due to the merchant fees, and we’re left with about 8 bucks. Congratulations, you’ve now successfully created a business model where both the buyer and seller are getting screwed. The bank however makes out pretty well.

Friday, 26 January 2007