Priceless Pricing

I need to get my pricing right. If you've read my other posts you'll have see I have some dilemmas. Essentially, my initial marketing method was to offer free service with a view to converting customers later. Conversion rates have been poor.. but since product/service cost is negligible, it's no big deal, except that collectively I need more companies to pay or the ship might sink (i won't let that happen).

My customers provide content for my website and I want to expand the site. I'm currently a one man show, or less than one man, as I have some other commitments! I may get staff/help but for now continue planning that I'm the entire labor force. On that basis, I don't want to be chucking money at advertising. So I favor (as I did before) continuing the 'free service for a limited period' strategy to encourage new business and then hopefully a sale conversion will occur later.

What are your views on this strategy which essentially is free pricing initially and then hopefully drag some dollars from them later? What does it tell them about my business? any alarm bells?

another thing to mention about my prices is that they are pretty pathetic. what i mean is for the marketing budgets of the companies that i'm dealing with it's pittance. monthly costs are comparable to running between a newspaper classified/small ad or a place in the yellow pages. someone commented my prices look more consumer than commercial. but nobody would signup for my old higher prices, choking at the prospect. One of those that wouldn't continue an order with my higher price has been pleased with the service on the new price (so i take from that it must be about right). I haven't got anyone to compare prices with as noone has a similar offering.

You mentioned other threads but I haven't read them yet. What is your product or service?

Originally Posted by Jolly Roger You mentioned other threads but I haven't read them yet. What is your product or service?

It's a website in a specialist industry. Companies buy a webpage on the site to promote their own goods and services. I'm effectively like an online magazine or something similar.
Thanks

So you're selling Ad Space on your website?