Monday, May 17, 2010

On the Pricing of Web Applications.

The blog post titled Account Sharing lands Goldman Sachs in Court, is not only a wake up call to enterprises, but also one for the content providers.

One of the reasons why the account sharing mentioned in the blog post happens is because of the pricing of the service. Yearly pricing models tend to produce the account sharing behavior whereas monthly, or pay-as-you-go, pricing tends to avoid account sharing.'s is an example of monthly pricing.

So, the moral of the story is that content providers can facilitate proper subscriptions from enterprises by offering proper pricing models.

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