On Pricing Model for Web Apps

Good write-up of the thinking behind the basics of SaaS pricing models by Ray Grieselhuber.

As a startup, if you want to survive, you have to pick a model. Everybody starts off by thinking they are low on the complexity scale (“our product is simple!”) so they believe self-service is an efficient model for them. But complexity, in this discussion, has nothing to do with simplicity in the user experience (elusive in its own right) but the complexity of your user acquisition and total cost of service.

Via @jasonfried and @newsycombinator