business model

Why Groupon is worth 100x more than MySpace

MySpace, one of the original big social media players, is on the sales block for $50-$200 million. Groupon, founded years later, is now preparing a $15-BILLION IPO. What did Groupon do so differently to create 100x more value using social media?

SaaS’ next pricing challenge, balancing easy budgeting with flexibility: Four models

Businesses and consumers love the flexibility of SaaS. However, this flexibility brings a “dark” side: less predictability – and ultimately – less control. Four SaaS pricing models address this challenge, in different ways – and for very different markets.

Start-ups: Three execution activities that separate successes from “interesting ideas”

The sense of freedom in a start-up (or incubation) environment is incredibly exciting. However, it is very easy to let this freedom lead you down the path of “what if”, distracting you from achieving success. You only have – at most – three years (many would argue two) to go from spending the “first opportunity dollar” to demonstrating commercial success. This leaves little room for distraction.

Nine software pricing models evaluated

Pricing software has always been an interesting exercise. The marginal cost to copy and provide software is virtually zero. However, the cost to develop it—and the value of the intellectual property that goes into its creation—is far greater. These two tensions have created a range of models that vendors use to price software. This post evaluates several of these, highlighting ideal (and non-ideal) markets for each.