Comments on: Joint Contact Inserts Social Media Into Web-Based Project Management

By: Mark Tarium

Mark Tarium — Wed, 15 Sep 2010 13:55:38 +0000

Hi, I’m looking to invest in mobile app stocks and smartphone stocks. Can you provide any suggestions? So far I have SWKS, ARMH, MIMV, ZAGG, RFMD and NVDA from this list: http://www.wikinvest.com/wiki/Mobile_app_stocks but I need need additional positions. If there are any ETF’s with a focus on mobile that would be great too. Thanks – Phil

By: Markham

Markham — Mon, 04 Jan 2010 12:02:03 +0000

Granted. But if you wanted to exploit network externalities, i.e. scale up the user base of a particular app as quickly as possible, it would make more sense to apply the charges on some other variable. This way, more users sign up for free, but they would then have to pay fees if they want more projects, or more storage, or no ads.

By: Simon Mackie

Simon Mackie — Thu, 31 Dec 2009 09:37:29 +0000

Variable costs have very little to do with what these apps charge I would think. Storage and bandwidth costs are very low. I think the per user fee makes sense to most customers (it’s what they’re used to paying on the desktop) so it’s a good way of charging an incremental fee that rises with usage.

By: Markham

Markham — Thu, 31 Dec 2009 08:49:26 +0000

Can someone explain to me why some of the collaboration and project management apps (like Joint Contact) have a pricing scale that is dependent on the number of users? I may be wrong, but intuitively I would think that the number of users does not add to cost and that the more variable cost items would be the number of projects/workspaces opened and amount of file storage used. Yet it is these last two that are often made unlimited at the next higher subscription level. Also, to tap into network externalities, the SaaS providers would scale up user numbers faster if they uncoupled their subscription rates from the number of users. I am just missing something in this picture?

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