Monetizing a previously free service.

What's the best option?

[GaryK]

I've been providing a widely used service for some 12 years now. Three of the top four sites in terms of traffic according to comScore make use of this service.

OK, it's actually data in a variety of formats that I'm providing, but I've always thought of it as a service. Perhaps because it's always been free.

It's finally gotten to the point where server load is so great that I've had to add a second dedicated server. So now my hard costs are high enough that I can no longer justify doing this all out of pocket.

I've been considering charging a very small fee for this service. Something on the order of a dollar for each download. There are, on average, between 2-4 downloads needed per month.

Another option suggested to me by a fellow Webmaster over coffee yesterday is making the site membership-based and then sending out a newsletter with each new update that includes at least one highly relevant affiliate ad; something directly related to my service. I already provide a small bit of news with each update. So a newsletter would really allow me to provide much more information about each update. But this would only work if enough people buy the stuff I'm advertising.

I'm not looking to get rich from this. Honestly, I just want to cover my expenses.

I have zero experience with using affiliates to help cover expenses. I'm quite used to subscription-based models though.

Keeping in mind you, as a potential customer of mine, have been getting this service for free all along. Which model do you think is least likely to create bad feelings while making me enough money to cover my expenses?

I guess what I'm asking is, as an internet professional would you be more inclined to accept a very reasonably priced subscription-based model to get what you need? Or would you actually read my newsletter and buy something via an affiliate ad provided it's something strongly related to your use of my service?

[Leosghost]

as an internet professional would you be more inclined to accept a very reasonably priced subscription-based model to get what you need?

Very reasonably priced subscription ..and throw in the newsletter for free ( with aff ads in it ) ..best of both worlds :))

[GaryK]

Thanks for your advice. It does seem like a good idea to use both I have to wonder though if it might. be off-putting to ask people to subscribe and also hit them with ads. But I do subscribe to a few IT-related magazines that also include ads so maybe not.

[gpilling]

Have you considered a Freemium model? I download per month for nothing, and unlimited for $5 per month?

Or is there a way to add services to justify a 'pro' membership? You could perhaps get a free copy of the Chris Anderson book "Free" to get some ideas. It has a whole bunch of them.

[GaryK]

I sort of have to offer one of the files for free otherwise the biggest, baddest software company in the world sends its lawyers after me. Would that fit within the definition of a Freemium model?

I like your idea of a $5 a month unlimited downloads idea for the rest of the files.

Should I offer a la carte downloads where you have to pay for each download? Some people will want to download the data more often than others will. It all depends on how accurately you want to identify the items my data deals with.

I'll go look for that book now. Thanks. :)

[Rosalind]

Should I offer a la carte downloads where you have to pay for each download?

Do you have to pick just one method because developing a mechanism for charging is expensive? If not, offer both. There will no doubt be people who prefer one way over another, because they'll want to choose whatever makes the most sense financially.

[GaryK]

It's only expensive in terms of my time spent coding it. I'm willing to develop a way to handle both types of charges if that's what you think will work best.