Building software is sorta like a bright-eyed and bushy-tailed camp counselor. At first, kids are dropped off by their parents, one or two at a time. Each kid has some special request that has to be handled. One has a ton of luggage to be stored. Another is a vegan. Another just wants to do archery and nothing else.
Then, busloads of kids start getting dropped off — all who are camping for free, but all have luggage, dietary constraints, planning issues. Not fun.
By the end of the day…the poor counselor is toast.
Software and camp counselors have so much in common.
Freckle raised prices for their existing customers and, hot dog, nobody revolted! How'd they do it?
Competition is something that can drive founders straight in to insanity. Lucky for you, it's actually something you should spend very little time worrying about. "You need a healthy sense of paranoia and should look over your shoulder every now and then — but make it a few times a year, not a few times a week."
So many companies are building their businesses on the backs of "user growth" instead of "revenue growth". Baratunde Thurston outlines clearly the same things I feel: please let me pay for your service, especially if it's for my business.