Let the market decide

[Sportacle]

I have recently read a thread pertaining to the charge of membership rates (simplified) here at DNForum. Both sides have made arguments regarding the necessity/lack of necessity.

I bring the following argument into the forum for discussion. My belief is that simple supply/demand properties will drive the survival/death of this proposition. Furthermore, the price level will be driven by the same forces.

Setting up this forum, maintaining it, along with fixed costs all add up to some aggregate cost. The question is, does advertising revenue cover these costs? Essentially, if you can factor in your own cost of labour into the cost equation then breaking even is not so bad, as you are technically paying yourself a wage - which you could earn elsewhere. But, I am sure Greg prefers to do what he enjoys for a living, and this forum probably provides some satisfaction.

If you truly believe that this forum provides value equal to or beyond the proposed fee then you will probably stay. If not, then the forum will have to decide what is worth more - losing you, or the cost of trying to get you back later.

Regardless, if the forum is losing money by operating as it is today then a fee is necessary. And the level of that fee will probably fluctuate based on sign-ups. If the fee is an attempt to profit from the forum then the same forces should apply. But we would expect less people to jump on board, as the membership fee will probably be higher than in the break-even scenario.

In the end, I think this is a good idea whose success/failure will be decided quite academically.

Best of luck with this. However, I am one who will not be paying.

My recommendation for the forum is to create a simple supply/demand curve by polling people (if you haven't already done so). Graphing prices versus acceptance of each price level should provide your demand curve. In the pool, include different price levels to vote on and let the market decide.

Your supply curve can be simple as well. What price will you supply services based on some number of people? If you can afford to supply services at $10/person based on 500 members then graph that point, etc..

And, as we all know,...the point at which they cross is equillibrium.

This may save you a lot of headaches down the road by having to reacquire a disgruntled past member - at an additional cost.

Just an idea that can be done with a simple poll.

 

[mole]

You're dead right about market demand and supply, sport. Look what happened to the dotcom boom.

Once in a long while on the internet, you find a resource that you really find useful and are willing to contribute to its continued health and existence. DNF was one such resource for me with regards to domain names.

Before greg came on board, DNF was in financial need. The servers got majorly disrupted twice. I contributed $100 bucks immediately to help out, and I think some other old members did as well, because I did not want to see the resource die.

Today, the DNF servers are running at full clip, and I'm sure greg has spent considerable money for its upkeep and also to improve its functionality with value added features like live auctions which are custom programmed.

Most times, many of us don't see what's need behind the scenes to run a successful forum. Precious manhours spent to plan, design and implement are conveniently forgotten, and everyone seems fixated just on hardware and connectivity costs.

Many people think they give to the forum, but conveniently forget that they take back a lot more knowledge, opportunities and insights as well.

DNF is not just a wannabe place to talk about domains, its evolved into a business exchange of sorts. A place where you can sell your domains, buy your domains, and get a lot more savvy in understanding this crazy business. You can make money here, through

(1) free publicity for your business sites in your signatures which many boards don't allow

(2) direct sales postings on what you have on offer

(3) finding contacts and free advice that will help you make money, or, avoid you losing it.

Sure, nobody wants to pay for anything on the internet if they could. That was the consumer slackiness and spoilt mentality that drove thousands of dotcom businesses to their grave. Today, many originally free internet services like email and hosting and a pletoria of others are going paid. Many information sites are going paid. And the trend will get stronger and stronger. Better than facing Chapter 11, if you were running that service.

If going paid means the days of freeloading are over, then live and accept it. All across the internet, this is already happening. If you don't find value in DNF, then don't sign up. If you think DNF will continue to remain a valuable source to you and a place you can make money or valuable contacts, then sign up. If you can't think what to do, as that precious $5 a month you could spend on a Big Mac to fill your stomach for a day's lunch is more important, then your personal priorities must take precedence.

It is common for us to be Drama Mamas when the mood strikes us, by arguing on "principles", "fairness" and "social equality". Communistic principles have long gone the way of the dodo bird in Russia and China. Especially for those who had a bad day at the office, or life sucks and my wife needs food, the DMMM reaction is usually more pronounced.

Just give this place a chance to earn a decent living, willya. People always forget the good times, and instantanteously bitch like grandmas with heomorroids when things aren't so rosy.

And no, I don't like greg.

 

[Fearless]

Originally posted by mole

And no, I don't like greg.

Everyone should end their posts like this.


And yes, I do like mole.

 

[Duke]

I agree 100%, word for word with what Mole said....well OK, I haven't decided about Greg yet.

People will make their own decisions about the value equation. However, if I was a medical student I would want to study where the great doctors and hospitals are located. It might be cheaper to move to some backwater area where there is a single country doctor, but how much do you think you are going to learn there?

It's just a personal observation, but of the people I have seen move elsewhere or "threatening" to leave (either because they refuse to contribute a penny toward ANY resource they use, or because they were kicked out), I can count on one hand how many I think were worthwhile contributors here. Conversely, if I used both hands and both feet I would run out of digits before tallying the number that I am very happy will be wasting bandwidth on another board rather than this one.

I think this "FREE the internet", down with capitalism chant is frankly a load of crap. You get what you pay for. If a valuable education and priceless contacts in this business are worthless to you then by all means, take the FREEway. I remember something a businessman told me many years ago - "I have no quarrel with a competitor who charges less than me...He knows better than anyone else what his product is worth".


P.S. In accordance with Greg's wishes as stated in the post above mine, let me just add.... Greg SUCKS!