The value pricing models for consultants and graphics designers that you suggest are not tied directly to this model, in my opinion.

However, they are similar kinds of concepts.

When you start thinking creatively about pricing — for any kind of service — it does lead you to similar conclusions, does it not?

From the seller’s side it is usually a quest to get paid over and over — developing recurring revenue streams — instead of getting paid a single time. From the buyer’s side it is about paying only for the perceived value, especially as prices for certain things like technology continue to drop.

Best,
Anita

Loved the post. I wonder, though, what pursuing this kind of business model for software might bring for companies who provide a vast array of services to clients? What are the possible modifications they may have to make once clients start thinking about “using” software rather than “purchasing” it.

Do you think there are implications to traditional consulting contracts or retainer arrangements for PR firms or ad agencies (as an example)? Will this kind of model for software help accelerate the trend towards “value-based” pricing for marketing communications and other consulting services – where you only pay what the service was worth? Will it mean that graphic designers or web developers will only “license” their work to a client and expect residual payments if their work “over performs”?

Lots of interesting questions come up as a result of this new trend – and your post does a great job of summing up the opportunity. I hope we can generate some discussion as a result.

Please keep up the great work. I’m adding this post to my list of blog entries to read on Wednesday’s (11/16) “Much Ado About Marketing” blog.

Thanks again,

Mike Bawden
Brand Central Station

Anita offers two assertions that may be appropriate for readers of Be Excellent™:

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