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Need your advice. How to price my services ?

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I built a domain appraisal service (DomainMongrel.com) which is free for limited number of searches. It became popular and I cannot keep this going for free for long.

I am working on adding another feature to this, which is a domain generation service.

So you basically enter a keyword, say happy. My service will figure out high quality prefix and suffix that will go with happy and then check if they are already registered. It will only show unregistered domains that you can register. ex: happybirthday.com (if this was not registered.)

I did a trial run and it seems to be generating fairly high quality domain names.

Now, I am wondering how best I should price my service.
Type 1
(basic)
9.95$ for 1000 appraisals + 1000 keywords (for domain generation) per month.

(medium)
29.95$ for 3000 appraisals + 3000 keywords (for domain generation) per month.

(pro)
99.95$ for 10000 appraisals + 10000 keywords (for domain generation) per month.

Type 2
or (basic) $29.95 (medium) $49.95 and (pro) $149.95 with corresponding higher number of queries per month.

Any thoughts?%%-
 
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The views expressed on this page by users and staff are their own, not those of NamePros.
My first thought would be to keep the cost low and charge for each one. Then send out a bill at the end of the month and let people come back to the site and pay with PayPal or whatever.

I realize this may make things a little more complicated for you, but here is my thinking. Make the unit price about 0.05 each. This is much more that you plans, but 5 cents is nothing. At that cost people can use it 20 times and it costs them $1. But if they use it 1000 times it costs $50. That is still not excessive for a good tool that produces results. Even one good domain could be worth that.

Then you can tell people to contact you if they are interested in bulk prices. You can figure out what you need to make that available. I think you can get some higher rates for your service and still also reach the smaller customer that may not easily spend $10 for a service they are not sure they need.

And if the service fees are so much that you will lose money on the smaller monthly bills, you can either choose to not charge people "You have been chosen to have free access for your first month. You bill for last month of using our services has been paid!". People will like that and tell others about your service. :)

The other reason for sending out a monthly bill is to remind people that you are still there. They may have forgotten or been busy. And that can get them back to your site and exposed to other offers you may have.

You know the power of offering things for free. And there are ways to keep that basic philosophy while also generating income so you can stay in business.

I hope some of this is helpful. Good Luck!!!
 
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Check and emulate the competition, eg. DomainTools. Not only will this give you an idea of what is working for others, you may also be able to see and think of ways in which the existing pricing models for such services could be improved.


Frank
 
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Don't just offer it cheap because someone said keep in lowcost. Look at the competition, your market share and if you're really offering quality services. You should also look at the cost of making those services happen.
 
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Thanks for the replies. I appreciate it. Really good points to think over.
 
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I don't know the traffic of your site, but although the packs are good, you might consider coming with smaller prices as from a free tool to 9.95$ it's quite something. Make 1$ and after 3 month 2$ and so on.
 
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