Ask HN: Web app microtransaction vs. subscription?

5 points·twidlit··3 comments

Instead of a monthly subscription, anyone can use the site but advance functions require credits/micropayments. For example, Basecamp - if you add more people its $2 per month per person. if you like to add 50mb or 100mb add $2 or $4 month. Would this work? This has happened in the MMO space. whats stopping it from working in the web app space?

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The fact that users hate microtransactions with a passion outmatched by a thousand burning suns, and that for the same amount of effort to convince a real business to buy $5 of credits, you can convince them to sign up for a $20 a month subscription in perpetuity.

I've often wondered this too, so I'll take a stab at why it hasnt:

- in mmos the transactions are impulse buys and often not major decision points for the purchaser. The "do I need this?" question isn't a high priority. Of course you need your virtual crops to grow faster.

- with web apps, especially saas apps, this isn't an impulse buy. You've been trying the app out for a while and every dollar you spend is accountable. You're much more likely to ask "do I really need this?"

How about if it a consumer web app like say Flickr or Picnik or Dropbox?

One benefit of microtransaction payment providers is that they have a multitude of payment method including load cards, pay thru sms, etc.

I would think that consumer web app would have better revenue if it was ARPU instead of 2-5% conversion rates. Does this make sense to anyone else?

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