Sharing Daily Discoveries About Personal Finance And Business Topics

From Free To A Fee

Not too long ago I wrote about an instructor that decided to start charging male students a fee for his instructional services while allowing females to continue for free. The result thus far seems like a dropout in interest and having to start from square one in attracting new participants.

Then just recently I was reading about other services where it was initially free and as a result of its popularity some fees were introduced to capitalize on this. However, in this case people paid for it too even though they were not too enthusiastic about it.

I thought that was an interesting thing to look at from a business perspective on when is the right time to introduce a fee to a service that was normally free? You could offer the best service in the world, but sometimes people do it too soon and end up discouraging the existing user base to go elsewhere.

For myself I am usually more picky about getting an immediate return when it comes to fee based service that was initially free. Example, if there was a site that normally allowed you to post free listings that have always generated some kind of return for me then most likely I would be more receptive to paying the fee.

I think that is the key too where if you introduce the fee for the sole purpose of making an incomer then most likely it wouldn’t go well. However, if you introduce the fee with a brief explanation on how that will enhance the service or offering for you as the customer then that is a different story. It’s safe to say that both sides want a benefit.

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