The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Welcome to the only entrepreneur forum dedicated to building life-changing wealth.

Build a Fastlane business. Earn real financial freedom. Join free.

Join over 80,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.

Free registration at the forum removes this block.

How to price a web-based service?

yveskleinsky

Silver Contributor
Speedway Pass
User Power
Value/Post Ratio
23%
Jul 26, 2007
2,215
515
46
I'm trying to figure out how to price our service. Currently, we are thinking a flat fee of 5% per transaction. When we have asked around, people have responded positively to this number. HOwever, when we sit down to crunch numbers to see if we would be making money with a 5% fee, I'm not really sure. The reoccuring expenses that we know we will have will be:

- hosting which we are anticipating around $10/mo- but if we use a lot of bandwidth (planning on having <100 people on our site to start and then grow to >100,000+) this number would change-right?
- basic office expenses: (internet service, phone,utilities, rent): $2000 (won't need this right away)
- marketing/advertising: $500/year to start- and then that number would probably grow exponentially.
- there is the potential of us having employees if we got larger and used phone based customer service (unknown cost)

Our growth goals are to have 10 "clients" (which would gross us $150/wk) to start, with the intent to grow to 100k "clients" in several years.

Is there a way for us to figure out now how we should be pricing our service?
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

yveskleinsky

Silver Contributor
Speedway Pass
User Power
Value/Post Ratio
23%
Jul 26, 2007
2,215
515
46
Based on the research that we have done, there is no direct competition. There are sites that are similar in the concept to what will be doing, but we are approaching our market slighly different, and we think this difference will, well, make all the difference! lol.

I think we are going to move forward with the 5% fee, just based on the response we've gotten so far. ...We will make a profit, but it will be small- which I guess is fine if the site is automated and the income will be mostly passive.
 

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

Latest Posts

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top