In most cases, getting something for free is preferable to paying for it. But now always. One example I’ve always found intriguing on this front is online dating sites. If you’re (say) a very attractive female, it’s HIGHLY likely that you will be inundated with messages from potential suitors. But by making the suitors pay to send messages, not only is the experience better for the person receiving the messages (less noise), it’s also better for the people that really want to ask her out (and have a chance). And importantly, a real business model is born.
With that in mind, think about most online job sites. The way most operate is to (in relation to the above example) make the very attractive female pay to post her ad, while allowing any suitor to send her “applications” for free. It sounds rather absurd when you think about it that way, but that’s exactly how most work.
LocalBacon is a new job-search site (profiled at the TechCrunch 50 conference) that’s trying to do it the other way around. Employers can post jobs for free, and applicants must pay something to apply. Now there are a lot of wrinkles to iron out around pricing, and various other interesting features that might be worthy of discussion, but I just want to focus on the simplicity of the general idea. Stop making one customer pay, make the other customer pay, and increase the value for both parties… while perhaps creating a sustainable business model in the process.Nice.
Would love to hear examples of other businesses / industries such an approach could work in…
