On Mon, Jun 13, 2011 at 10:14 AM, edward mayaka <emayaka@gmail.com> wrote:

Hi,

There are three models considered in pricing of goods and services i.e.

Freemium model
Freemium is a business model that works by offering a basic product or service free of charge (such as software, web services or other) while charging a premium for advanced features, functionality, or related products and services. This is a very popular model and has been adopted by companies such as Google in offering free gmail accounts while those clients who need more functionality pay for premium account.

Third party pays

In this business model services and goods are offered for free but a third party pays. This model is probably responsible for making Google a household name in the search market. The service is offered free for clients searching for keywords while advertisers pay for the service. In the local scene think of KTN, NTV, Citizen e.t.c.

"Nothing for nothing model"

I call it "nothing for nothing model" for lack of a better word. This is the most popular business model where goods and services are exchanged for monetary or other direct gain. Adopted by millions of businesses in the World.

Factors to consider in choosing an appropriate model is cost of production, marketing and distribution. My take is the World is now more than ever moving towards the free business model.

Indeed, Lawyers do over free services commonly known among legal circles as Pro bono services for example in representing indigents facing murder trials. PWC also offers quite some free services as seen in TV professional shows e.t.c.

Regards

Edward Mayaka

On Mon, Jun 13, 2011 at 8:43 AM, Phares Kariuki <pkariuki@gmail.com> wrote:
http://skunkworks-ke.tumblr.com/post/4715250243/screw-you-pay-me-how-to-negotiate-with-customers

Very interesting video I came across on the subject....

On Mon, Jun 13, 2011 at 8:14 AM, justus <mutahijustus@gmail.com> wrote:

im also a worried man , i worked with a certain govt body as IT support for sometime, when i got out some guys who were my bosses still call me claiming their personal computer needs formatting , whether i have an antivirus, all this crap and they rarely pay a penny just because they were my bosses by then. there should be a limit .making a call to ask for help is okay for me but bringing your laptop to update your antivirus is too much -for free!!

On Sun, Jun 12, 2011 at 10:50 PM, Net Caster <madungu@gmail.com> wrote:

Hi Skunks,
Something has been bothering me for some time now on this list. I know many skunks have set up IT businesses and consultancy in areas such as web-design, networks, VOIP, software development, support, FOSS implementation and maintenance etc. Lawyers, doctors, civil engineers, realtors, quantity surveyors and plumbers have also registered their businesses. The one major difference between the techies and the later group is that we tend to offer our knowledge, skills and consultancy for free on public forums such as Skunkworks. There is a fine thick line between offering a fellow techie help when stuck and streaming really premium information to non-techies and thus denying professionals their right earning. Those of you who have engaged lawyers, realtors and plumbers recently can attest that nothing is free from the outset.

While you may have a day job, there are fellow techies who hassle with start-ups and can offer these services at a fee. I believe the better approach is to refer such questions to IT companies we know who offer the service/product in question. Come on guys, the techies need to pay bills, tax and put food on the table.

I've got lawyer friends who cannot copy-paste that company incorporation document for free claiming LSK does not allow them to offer free service (my foot). On the other hand, techies would helpfully volunteer information on how to google, download and customise IT Policy without asking for a cent. Very soon, IT lawyers (they exist, by the way) will start "developing" IT Policy at a fee as IT professionals watch.

I think we are our worst enemies and we invite quarks with money to easily set up and run IT businesses at our expense. In the end it helps no one. Not the industry and its growth in competence, professionalism and respect. Not the people we think we are helping and not ourselves. And we ask why we are treated with disdain in office. Look at the mirror.

Just my opinion. Don't lynch me. Maybe it's just me but am I so off the rail?

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