There's Value in Charging
blog.jarederondu.com
blog.jarederondu.com
One thing I'm wondering is: what if Instagram had charged $0.99 for their app? Would it be where it is now? I would certainly pay, but I'm not sure everyone else would. Or even Youtube. Would Youtube have succeeded if they charged for access?
This is just not true. People value and will pay for lots of things that others think have no value and won't pay for. In most cases, you are not your audience.
Additionally customers who are not willing to pay aren't necessarily "better" customers. For example in the case of Twitter verus App.net. I'm guessing the people who are willing to pay for App.net are a very selective group of geeky tech nerds. (I'm one of those people.) Listening to those people will lead you to develop a version of Twitter that appeals to them. If you want to develop a version of Twitter that appeals to normal people, charging money will attract the wrong crowd.
Fast forward over a year. 120K downloads and 1.6m+ app-based reblogs later, I still have daily feature requests, hate/love mail, a horrible set of reviews and no inspiration to build it up to be worth a few dollars. Of course my situation is only mine and one can say "now's the perfect time", but that's another debate.