@mazlan
Mazlan Abbas
@mazlan · 1:35

LOAE #4: How do you develop your business model and how do you price them?

But if you can get one customer pay you twelve customers pay you one dollars per month. You will get instantly your ROI in the first month and the second month you will get your profit. But I would like to learn from you of how you do it. Thanks

#business #startup #entrepreneur #loae

@sudha
Sudha Varadarajan
@sudha · 1:04

https://app.swell.life/swellcast/yCd5

So unless you're coming up with something that's completely unavailable in the market or you're looking to disrupt the market, I think typically pricing follows what the industry does because the consumer is used to that particular industry's pricing model and will expect that from your application too. And so like I said, unless you're looking to disrupt or you're bringing in something brand new, my approach would be to look at what the industry does because that will match customer expectations
@arish
Arish Ali
@arish · 2:13

Price to capture market share

If you really have that kind of opportunity to kind of be like a first mover in the market, then yes, you can pick and choose which end of the spectrum to go for in terms of pricing. And the temptation may be very high to choose the upper end of the pricing because customers will be willing to pay for it because you're the only kind of game in town. You have pretty much monopoly pricing powers. In some ways
@mazlan
Mazlan Abbas
@mazlan · 1:30
How many people will be going go for the premium? How many percent of your downloads or users that have subscribed will actually turn into a premium users? Any figures? Thank you guys
@shammi
Shammi Mohamed
@shammi · 4:58
I determined the retention point for my app, so that would be a rough estimate about how long does it take a user to engage with my app and then continue playing it? Once you determine that a good, solid retention point. What you want to do is until you hit that retention point, you want to keep the app in a premium mode. In other words, give the user the best possible experience and not bother them with the annoyances of what a premium app brings in
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@shammi
Shammi Mohamed
@shammi · 2:00
I had a free version with ads and premium version, which you downright bought. The very interesting anecdotal observation I have is when I priced the app at one dollars, I had lesser sales, premium sales. At some point I decided to take it up to $2, and my premium sales actually increased. That kind of tells us a little bit about the psychology of price points, about the perception of the quality of an app based on its price
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@mazlan
Mazlan Abbas
@mazlan · 2:11
So in that case, our business model was thinking about subscription based because every user who subscribes need to pay every month or yearly because the cost will be also recurring every month and yearly due to this tools that we are using. So do you think that is also a good model for subscription based or a one time app where people just download it and they will use it forever?
@Swell
Swell Team
@Swell · 0:15

Welcome to Swell!

@shammi
Shammi Mohamed
@shammi · 4:38
So what Irish said was you need to take that opportunity and double down on it. Basically, if you had an ad campaign, double down at that time as soon as while you're launching, if you have social media outreach, double down on that, literally give it everything you have at that one instant in the hope that it can keep bubbling the thing higher and higher in the App Store, and then the feedback loop just continues and it just breaks out
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