How to make $800/mo from three lines of code
jmduke.com
jmduke.com
In terms of
'People don't pay for highlighting, they are paying for more traffic from an ad Ultimately, they are paying for all the other stuff on the website that gets people to show up, view ads and click on them.'
Uhhh dur. And the post even addresses this:
' There are a lot of lessons one can learn from this anecdote: the art of the graceful upsell, the underlying value of 37Signal's brand/traffic that lets them charge $200/month for a glorified <li> element. '
Note, "the underlying value of 37Signal's brand/traffic".
House address: 123 Main Street
- Owner: Joe Previous
+ Owner: YouThe author purposely picked out an example where the technical difficulty was trivial to illustrate that the value to the customer is NOT related to the technical difficulty of the feature.
But it's an interesting analysis of value through the chain.
Whoever payed for the highlight, funnily enough is going to end up spending more since it's going to hire earlier than the others (in principle, on average)
But they expect the $50 to pay for itself on the longer term
And in reality, that $50/month price may rise in order to keep the number of highlighted lines infrequent enough to still stand out.
It's not just 3 lines is what I'm trying to say.
$5,000-10,000+
Do the exercise and share the results.
The keyword is: "TIMEX"
> But the most important lesson -- and the most easily digestable -- never confuse technical difficulty for demonstrated value.
How many times companies sell same product? They are not rewriting the code, just sending you a copy - zero effort
What about the lines of code in order to control the feature? Code to charge customers who use the feature? Running analysis to test different shades of the color and how well they perform? What about time spent on the phone and sending emails answering questions from prospective and current customers?
This was not intended to be a literal guide on how to make $800 in 3 lines of code.
The title was just link bait then?
I guess it's the product of years of ignoring the ads on Google.
I'm thinking about a study cited in Thinking Fast, Thinking Slow[1] where the participants did better on a test when the questions where in a blurry font. I believe it was suggested that being forced to exert mental effort to read the questions forced their brain into "actual thinking mode" as opposed to "pattern recognition" mode.
ie. If we know it's probably not an ad, but it looks like an ad, is it a more effective bit of non-ad? (well, it is an ad, but it's an ad we want to see.)
[1]http://www.amazon.com/Thinking-Fast-Slow-Daniel-Kahneman/dp/...
Step 2: 3 lines of code
Step 3: Profit
If everyone want’s to highlight their add, then double your price. If everyone still want’s to highlight their add, then double your price again.
Obviously, you pay for the amount of eye-balls seeing that ad. Changing the color may result in thousands of people more seeing the ad. The cost is in the know-how to get these thousands of eye-balls to see your content. Not for the color.
Without a platform as hugely popular as 37-signals the programmer could change colors all day long on his 'localhost:3000' and that wouldn't be worth $800. That would be worth $0.0.
The premise of the article is completely false.