Whether for an entirely new business, or for a new pricing approach in an established business:
- key questions about FairPay are how hard is it to integrate with your pricing systems, and to what extent might it put revenue at risk?
- key benefits of FairPay are as a learning process, centered on dialog with your customers, about what they want from you, and how they value it.
(Note, this post deals with strategies for introducing FairPay in a gradually phased manner, and assumes a basic understanding of FairPay concepts -- see the sidebar, and other posts and the FairPay Web site for the basics.)
The idea is to use FP in a startup mode to provide ongoing on a “free trial” basis, while a new service is in a “provisional use” mode, and then, after that, to phase in use of the full FP feedback and control processes.
- This approach is especially suited to new lines of business where the value proposition may be uncertain or temporarily limited (such as beta tests, pilots, etc.). Limitations may be due to lack of system function or lack of critical mass network effects, such as those affecting content richness, community participation, etc.
- This provisional use of a subset of FP processes can be beneficial, even before full use of FP is pursued. This opportunity may be common to many startup businesses, or to new services within existing businesses. It can also be applied in existing businesses by taking services that had been in a standard service tier, and shifting them to a premium tier on a trial basis.