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Re: AM: Subscription rates

To:     Fletcher <fletcher@cdinet.com>
Subject:     Re: AM: Subscription rates
From:     paul@routelink.com (Albert, Paul)
Date:     Fri, 17 Oct 1997 19:17:03 -0400
CC:     ad-market@netpreneur.org
Organization:     RouteLink
References:     <Pine.GSO.3.96.971017145743.23248L-100000@periplum>
Reply-To:     paul@routelink.com

Fletcher wrote:

> Does anyone have any experience with setting online subscription
> rates?

I have some experience in the matter and can state with complete
assurance that there is not a completely correct way to do this. 

Of all the possibilities, the Internet does not lend itself well to time
based charges which are the most traditional in the information
industry.  I would suggest some combination of monthly membership and
per search fee. 

The real question that should be asked in determining fees is "what is
this service worth to the users?" How much can be saved/gained from
using the service on average?  Evaluate how often the database would be
used during the year, then figure out what would make your offer
appropriately compelling.

I have priced RouteLink such that the benefit of one successful match
equals the cost of four months of service.  Get only three matches a
year from RouteLink and you will get your money back (but act soon!).

Give me a call if you want to talk about this further.

Regards,

 -- Paul Albert, paul@routelink.com
    President, RouteLink
    Internet-Based Freight Matching - "We Help America Run"
    (v)703-242-4444 (f)703-242-3998, www.routelink.com

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