loading words...

Jul 07, 2019 21:40:42

Re: Re: How do I make a million dollars? (3)

by @jasonleow | 475 words | 342🔥 | 380💌

Jason Leow

Current day streak: 342🔥
Total posts: 380💌
Total words: 183481 (733 pages 📄)

@abrahamKim did an interesting exercise based on my calculations of how many customers do I need to make a million dollars: 

I'm replying to this as a consumer in the market. I wanted to respond by letting both you and @seun know for research purposes what I as a consumer would be willing to pay for each track.

He asked about our own versions, so here it is, plus some new ideas:

Get 50 people to pay $1,666/month for 12 months. 

- I pay around this amount in groceries and food. Perhaps a grocery delivery subscription? The common necessities that don't vary much per month perhaps? I don't own a car, but this is probably the costs of upkeeping a car in terms of tax and fuel.

Get 100 people to pay $833/month for 12 months. 

-  This is the range that I pay for my home loan payments. A mortgage or home loan financial management SaaS product perhaps?

Get 200 people to pay $416/month for 12 months.

- Nothing in this range for me, but this could be something for a high end living room sofa, or top of the line TV or audio set. Furniture-as-a-service? Haha.

Get 500 people to pay $166/month for 12 months.

- power and utilities go here. Basic infrastructural stuff. Also the instalments price range for electronics like laptops, mobile phones.  

Get 1000 people to pay $83/month for 12 months.

- lots of my monthly subscriptions fall into this range. Cable TV and home broadband and public transport costs fall into this range. I think this is the price range many are comfortable to pay for family and team subscriptions perhaps. Basecamp, a team project management SaaS, is $99. But depends on what service/content of course...  

Get 5000 people to pay $16/month for 12 months.

- My mobile phone plan is slightly higher, but there's increasing competition locally, so prices are dropping. This is the price range for more premium personal apps perhaps? Superhuman, a premium email service, is $30 per month. 

Get 10,000 people to pay $8.33/month for 12 months.

- a lot of entertainment sites are priced around this, e.g. Netflix, Viu. I think this is the sweet spot for many SaaS apps for personal/consumer level use, e.g. productivity apps, to-do apps, simple web hosting, domain hosting, music apps. Kanban Mail, an email app from an indie maker, is $8 per month.

Get 100,000 people to pay $0.83/month for 12 months.

- I'd seen digital newspapers going for this price. But rare to see anything priced at this range. It might work as sort of a percentage cut from a middleman service, like transactional fee for someone using your payment system? In the developing world, this might be considerably high enough for a substantial service.

It's an interesting exercise for sure. I often think about SaaS apps only in 1 or 2 price ranges ($83 and $16), but perhaps there's SaaS products that can target the markets in the other prices too. Good food for thought.

  • 1


    hey you know what might sound fun if you have the time to do it? A webapp that collects this data and summarizes it haha. A survey of what people are willing to pay subscription rates for.

    Abe avatar Abe | Jul 07, 2019 15:53:52
    • 1

      @jasonleow @abrahamKim This is actually very cool.

      Thinking about how to monetize it.

      Push out the survey to lots of people, sell access to the answers for a token.

      Watcha think of this Jason?

      Seun Oyebode avatar Seun Oyebode | Jul 07, 2019 21:38:18
    • 1

      @abrahamKim @seunoyebode hmmmm I'm not sure. Usually when I see a survey, I run away faster than the page can load haha.

      Jason Leow avatar Jason Leow | Jul 08, 2019 20:27:57
    • 1


      haha so the survey must be reimagined. Just like how software being reimagined as 'apps' opened a whole new market place.

      Abe avatar Abe | Jul 08, 2019 15:03:19
contact: email - twitter / Terms / Privacy