Today I realized there is two very different revenue and mental models, between 2 seemingly very similar products. The lines between a traditional desktop application you download and install, versus a service you simply use on the Internet through a browser, have becoming very close in the last few years.
However in the last 2 months I have been purchasing good software online. I would never pay for a web service, or online tool that could claim to do something similar for the price of the software I am willingly purchasing. Why is that.?
Here are the 2 products I felt were a worth paying for this month:
Versions By: Pico & Sofa
This is indeed a simple yet necessary piece of software for anyone working on shared projects that use SVN repositories. The Website is simple and clean and the application downloads to your computer for € 31.20 (Approx $45 USD). You get a serial code in the mail for full activation, and you drag that application to your finder, and I was fully satisfied. Not everyone will buy this, but there seems to be a code amongst coders to pay a fair price for a fair product, and this is an elegant example of how simple that can be.
iScreenSaver By: XochiMedia
I paid $199 for a limited license to make up to 10,000 branded screen savers. UI and interface wise this app is kinda suffering, but It does, work, and work quite well. People looking to develop screen savers have fairly limited options and they are able to charge big dollars for something to help you get your project done.
With that said however, I would never pay $199 for most web applications, especially if I only needed to use it once. Is there something in our subconscious that states an Icon on the desktop, has more value than a URL in a web browser? We have come to terms that Microsoft Word costs $300, when Google docs are fee. Cable, and DVD rentals cost money, but YouTube is available to anyone 24-7. I would say a definite yes, using the Internet as platform for your software inherently causes scrutiny in its value as a paid service.
Some Interesting Solutions
Since the problem is seemingly just a psychological assessment of product value, we need to help users judge a product for its value worth without basing it on platform. Smart companies have recognized this concept and attempted to solve the issue in a few different ways.
Introduce the Product Physically
Apple sells its new online suite Mobile Me in store. It comes in a box just like the desktop software iLife and iWork. You take it home and open it to nothing but a serial code, and some brochures, but what you bought was product. You looked at the box, checked out the back, and justified $99, in a way you may have never done solely through finding the service online.
This approach has also been used for years with Virus protection companies like Norton. By selling in stores like BestBuy, the product is made available to a completely new group who may not have known the Internet was the place to look for virus protection. Do your users immediately think of an online solution for the market you are in.?
Present your Web App to Illustrate Power (to the users).
People who use the Internet are ungrateful. They click through pages from link to link all day and never pay a thing. Why is your app, not just another page, or just another link clicking.
A few years back, I made a dynamic calendar system for the Carleton University. It asked a student for some information, and generated the correct calendar for his/her upcoming events. Pretty straight forward, and would have been a standard form, to calendar. Page to page instant system like people are used to.
However, because of some server transition. I had to go to a page, and do an old school META page forward, it would take 5 seconds before going to the calendar. On this page, I decided to put a cool looking loading gif.. That took 5 seconds, and it progressed at an uneven pace.
In no way was the middle loading state even needed, real, or actually generating a schedule. However, I have never received more compliments on a system. Staff and students were amazed with how cool it processed and asked what actions were going on and felt like they system was working really hard for them each time.
Conclusions
There are many great web services that people pay for. In no way do all web-services rely solely on purchase and subscription income like most desktop applications do. However, when we look at the similarities and try to determine what makes people psychologically justify purchasing desktop applications, there are many takeaways we can use in the web world so our hard work is not taken for granted.