The idea is to limit the number of paying customers you will accept for your niche product. For example, if your targeting a very small niche, you could limit the number of paying customers to something like 99.
That way:
- The non-paying users feel a sense of urgency to convert into paying customers, and
- making it exclusive means that you might be able to charge a premium and maybe in return also customize the software for the paying customers.
If your familiar with the psychology of persuasion, then you'll recognize this as an applications of the principle of scarcity .
I came up with this a few days ago and haven't come across anyone doing this yet, but I have a feeling it will work because:
- I think you can make more money by doing less, and
- doing less per product, frees you up to build more niche product to improve your odds of success.
Think it'll work?
Some References:
- Available for a Limited Time Only:
The Long Tail world is built on scarcity. If you have valuable niche information, charge more for it and offer it to only a certain number of buyers. When you hit the number you set, pull it off the market. You might just find you made more money than if you had offered the same product to all takers for a cheaper price.
- Overcoming Bias: Scarcity
- In short supply: 5 ways to use scarcity and exclusivity to fuel sales and boost your bottom line
- Book: Maximum Influence By Kurt W. Mortensen
- Book: Influence: The Psychology of Persuasion by Robert B. Cialdini
