Pricing APIs: Pricing Sucks, Here's What We Did (Gluecon 2010)
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Pricing APIs: Pricing Sucks, Here's What We Did (Gluecon 2010)

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Slides from "Pricing APIs: Pricing Sucks, Here's What We Did" as delivered at Gluecon 2010.

Slides from "Pricing APIs: Pricing Sucks, Here's What We Did" as delivered at Gluecon 2010.

also: Taking Pleasure in Merton's Law of Unintended Consequences.

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Pricing APIs: Pricing Sucks, Here's What We Did (Gluecon 2010) Presentation Transcript

  • 1. Pricing Sucks, Here's What We Did. (or, Taking Pleasure in Merton's Law of Unintended Consequences) Troy Davis Cloudvox @troyd // @cloudvox troy@yort.com
  • 2. @cloudvox Clue over Time - Perceived
  • 3. @cloudvox Clue over Time - Perceived & Actual
  • 4. @cloudvox Clue over Time - Perceived & Actual
  • 5. @cloudvox
    • What we knew
      • platform not product
    •  
      • variable cost components
        • costs are meaningless 
    •  
      • existing competitor
    •  
      • customers willing to pay
  • 6. @cloudvox
    • Selling 2 Services
      • Feature-competitive (HTTP)
    •  
      • Industry-leading (Asterisk/AGI, SIP)
  • 7. @cloudvox
    • Selling 2 Services
      • Feature-competitive (HTTP)  <- 3 cents/minute
    •  
      • Industry-leading (Asterisk/AGI, SIP)  <- 3-6 cents/min
  • 8. @cloudvox
    • Selling 2 Services
      • Feature-competitive (HTTP)  <- 3 cents/minute
    •  
      • Industry-leading (Asterisk/AGI, SIP)  <- 3-6 cents/min
    ^ hard.
  • 9. @cloudvox
    • Variable cost component
      • $X per minute
      • $X per customer 
    •  
    • Cost, margin spreadsheets 
  • 10. @cloudvox
    • Variable cost component
      • $X per minute
      • $X per customer 
    •  
    • Cost, margin spreadsheets
    <- mostly     accurate.      almost     useless.
  • 11. @cloudvox Pricing Risk Tolerance over Time
  • 12. @cloudvox adoption > upfront revenue
  • 13. @cloudvox Subscription plans    &quot; - add a 2nd cheaper service with fewer apps, maybe with a REST API, maybe just reduced functionality. &quot;
  • 14. @cloudvox
    • Constraints - ours & customers'
      • phone numbers
      • concurrent calls
      • total usage?
      • features only big customers need?
      • high-touch support?
  • 15. @cloudvox
  • 16. @cloudvox complexity kills.
  • 17. @cloudvox
    • Constraints - ours & customers'
      • phone numbers
      • concurrent calls
      • total usage?
      • features only big customers need?
      • high-touch support?
    bad for creativity, bad for platforms. X
  • 18. @cloudvox Price after you're live.
  • 19. @cloudvox Price after you're live. (okay, price before, but discount 100%, do so to placate the paranoid, invest little effort, and expect to redo it 2 months later)
  • 20. @cloudvox v2   1 price 0 monthly fees 0 choices v2 v1
  • 21. @cloudvox
    • Next Time, I'd
      • launch then price
      • cost the complexity
      • give everything to everyone
      • price for desired behavior
  • 22.     Troy Davis @troyd // @cloudvox [email_address]   cloudvox.com <- Asterisk hosting & phone call API, now 3 cents per minute flat   digits.cloudvox.com <- phone number<->location & carrier API, free