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

    • 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
    • @cloudvox Clue over Time - Perceived
    • @cloudvox Clue over Time - Perceived & Actual
    • @cloudvox Clue over Time - Perceived & Actual
    • @cloudvox
      • What we knew
        • platform not product
      •  
        • variable cost components
          • costs are meaningless 
      •  
        • existing competitor
      •  
        • customers willing to pay
    • @cloudvox
      • Selling 2 Services
        • Feature-competitive (HTTP)
      •  
        • Industry-leading (Asterisk/AGI, SIP)
    • @cloudvox
      • Selling 2 Services
        • Feature-competitive (HTTP)  <- 3 cents/minute
      •  
        • Industry-leading (Asterisk/AGI, SIP)  <- 3-6 cents/min
    • @cloudvox
      • Selling 2 Services
        • Feature-competitive (HTTP)  <- 3 cents/minute
      •  
        • Industry-leading (Asterisk/AGI, SIP)  <- 3-6 cents/min
      ^ hard.
    • @cloudvox
      • Variable cost component
        • $X per minute
        • $X per customer 
      •  
      • Cost, margin spreadsheets 
    • @cloudvox
      • Variable cost component
        • $X per minute
        • $X per customer 
      •  
      • Cost, margin spreadsheets
      <- mostly     accurate.      almost     useless.
    • @cloudvox Pricing Risk Tolerance over Time
    • @cloudvox adoption > upfront revenue
    • @cloudvox Subscription plans    &quot; - add a 2nd cheaper service with fewer apps, maybe with a REST API, maybe just reduced functionality. &quot;
    • @cloudvox
      • Constraints - ours & customers'
        • phone numbers
        • concurrent calls
        • total usage?
        • features only big customers need?
        • high-touch support?
    • @cloudvox
    • @cloudvox complexity kills.
    • @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
    • @cloudvox Price after you're live.
    • @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)
    • @cloudvox v2   1 price 0 monthly fees 0 choices v2 v1
    • @cloudvox
      • Next Time, I'd
        • launch then price
        • cost the complexity
        • give everything to everyone
        • price for desired behavior
    •     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