You Can’t Make Money Charging $1 Per Month

Re:You Can’t Make Money Charging $1 Per Month by akat on Monday June 27, 2011 @12:12PM (#2701828)

Serious question - Wonder how LastPass makes money then? (free or $1/month)

Or can we say that once you have acquired x number of customers at %5-7/month, it may then be easy/feasible to switch over to $1/month model since you already have a "traction" at this point

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Re:You Can’t Make Money Charging $1 Per Month by mikeryan on Monday June 27, 2011 @12:25PM (#2701872)

LastPass does it the usual way - they've got a premium (enterprise) product which they sell for $12-$24 per user per month. They can then write off any losses from the free product.

https://lastpass.com/enterprise_roicalculator.php

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Re:You Can’t Make Money Charging $1 Per Month by plamenv on Monday June 27, 2011 @01:52PM (#2702224)

That's $12-$24 per year, not month. And they can do it simply because of sheer volume. Everyone has to deal with passwords so their market is humongous. If you sell to teachers that's not the case.

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Re:You Can’t Make Money Charging $1 Per Month by ssharp on Monday June 27, 2011 @03:34PM (#2702661)

Selling to 100 users inside of one company is a lot different than selling to 100 individual users scattered all over the place. Company IT is likely to be the first point-of-contact for issues, which would decrease LastPass's support requirements by quite a bit.

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Re:You Can’t Make Money Charging $1 Per Month by jconley on Monday June 27, 2011 @02:25PM (#2702399)

Maybe they don't? Not that I know the details of their business, but I know I was shocked when I first learned how few companies actually make money. :)

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