Some alternative revenue suggestions:
- A "pay whatever you want" model, where people set their own price. They could set it to 0.0, but I don't think they'd want to.
- A free version with a limited set of features, but this can be a pain.
I think freemium actually works but you have to give some time.
What line of thought resulted in $3.99/year? Are you interested in this being a business or is this just a hobby?
[edit: explanation] I ask this because there is no way I would pay $3.99/year for something like this. At that price, you have no real reason to keep the service running and thus I wouldn't risk becoming dependent on it. I will use free things from Big G and company but if I am going to use a niche service, I want to know the developer is motivated enough to make it better and keep it alive.
I'd actually be happier paying $3.99 a MONTH if the tool was in any way important to me.
If you're feeling guilty about charging, a) don't - it's your time you're using up to make this thing! and b) spend, say, 50% of the money you make on improving the tool.
This is also all subject to change as I'm just trying to find out what works. But right now my thought is this should be as cheap as an android or iphone app.
Anyone who bemoans what you are doing should be embarrassed.