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Paid Betas

March 9, 2006 in business models, web 2.0 by JDA

Here’s an idea - web 2.0 co.s aren’t that great at being businesses, they’re much better at being betas. In fact, many of them do better as private betas (in terms of publicity) than they do as public sites. For Example, people loved Edgeio until they saw it. So, when someone says they have a great beta - and it’s been leaked to a handful of testers who are in love with the service - why not start charging others to use it? Say to the public - “you can use this same great service that all of the A-listers are talking about, it will just cost you a small fee.” Get the A-list chasers to pay for a month or three, then when it’s time to take off the private beta label give them a choice - keep paying or see advertisements. If they’re already paying it will be easier for them to justify continuing to pay, and since they have invested in your idea they’re more likely to keep using it.