Introducing Pay-As-You-Go Pricing

by Sarah Franklin

Today Coghead announced new pricing plans for do-it-yourself application developers.  The key attributes of the pricing announcement are:

• All basic accounts are free
• Premium features such as additional users, branding, and storage can be added at any time on a "Pay -As-You-Go" basis
• Bundles and volume discounts are available

The new pricing structure is designed to facilitate development of applications, and require payment when the application is deployed to other users.  In addition, the pay-as-you go model allows you to customize your plan, and only pay more as you receive more collaborative value.  We are very excited about this new pricing plan, and have already received a lot of positive feedback on the structure -- especially the $15 entry point.  Does this new pricing work for you?

Comments

[Mario Zambrano]

I like the concept of Pay-as-you-GO. I just hope from my own software engineering perspective that this model does not catch fire.

It could threaten all of the software industry existing price models. Since companies almost always buy more than they need, or not enough that they have to come back for more at a higher price.

Of course it comes with great price instability for the software company, since they can't really predict what their future finances may look like from month to month.

Still wishing you guys all the success in the world.

[Luis Bender]

I'm a Coghead fan, but I personally don't like the "per user" pricing model, be it a fixed price or pay-as-you-go. A "per user" model discourage spreading the usage of the system / platform.

I prefer other price scalability models, for instance based on the number of applications, like what 37signals do in Basecamp, where you pay based on the number of projects, not the number of users.