User Power
Value/Post Ratio
149%
- Oct 20, 2012
- 1,529
- 2,284
You start by calculating how much money your product will make/save the user and then charge 10% of that.
For example if you have a billing application that saves them from spending 2 hours per day messing around with accounting, and the person in charge of accounting is paid $20 per hour.
Then you're saving them $20 x 2 = $40/day.... times 5 = $200/week.... times 50 = $10k/year.
$10k/year dived by 12 months = $833/month.
10% of $833 = $83.... so you could easily charge $79/month and justify it by explaining that it would save them $10k/year and 9-10 hours per week.
For example if you have a billing application that saves them from spending 2 hours per day messing around with accounting, and the person in charge of accounting is paid $20 per hour.
Then you're saving them $20 x 2 = $40/day.... times 5 = $200/week.... times 50 = $10k/year.
$10k/year dived by 12 months = $833/month.
10% of $833 = $83.... so you could easily charge $79/month and justify it by explaining that it would save them $10k/year and 9-10 hours per week.