The “Ladies’ Night” Strategy

 Chris Dixon

In almost every two-sided market, one side is harder to acquire than the other. The most common way to attract the hard side is the ladies’ night strategy: reduce prices for the hard side, even to zero (e.g. Adobe Flash & PDF for end-users), or below zero (e.g. party promotors paying celebrities to attend).

 



Filed Under:
Collection: Strategy & Starting Up
Category: Pricing

Selling to Enterprises

Chris Dixon

Enterprise-focused VC’s sometimes refer to products priced between (roughly) $5k and $100K as falling in the “valley of death.” Above $100K, you might be able to make a profit given the cost of sales. Below $5k you might be able to market your product, hence have a very low cost of sales. In between, you need to do sales but it’s hard to do it profitably.

 



Filed Under:
Collection: Strategy & Starting Up
Category: Pricing

Dividing Free and Paid Features in “Freemium” Products

Chris Dixon

The ideal division allows the free product to be an independently useful, non-annoying, non-expiring standalone product, while still leaving room for the paid version to offer sufficient additional value that some acceptable percentage of your users will upgrade.

 



Filed Under:
Collection: Strategy & Starting Up
Category: Pricing