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View Full Version : Paid email - no adz - no spam - $3/year


besimple
11-26-2001, 07:42 AM
OK well this idea has been meddling in my brain for some while now.........you know all the junk that places like hotmail give you, i mean if i were to go now and open an account with hotmail by the user name of 'fhfds689bfd6_ge67d8ghb800' - even that would be full of spam 20 days down the line.......


What my idea is to provide a service just like hotmail but charge lets say 25 cents per month. In exchange for this 25 cents per month, users will get: *twice as much storage space, *no adz to slow them down, *no junk emails (spam), *their details will be kept private and never shared with anyone ever and loads of more small

besimple
11-26-2001, 07:48 AM
small nitty gritty things like that.

The project will be marketed via cpa services such as 'commission junction' etc.

At $1 per successful signup i reckon this idea could really really work. All i need are your ideas, feedback, opinions, questions, worries, warnings etc. regarding my business idea.

Besimple :D
PS. just asking because i've been told there are services already liek this but i have not came accross one and i think a service like this is very much needed. a clean, spit n span email paid service.

Duchz
11-26-2001, 07:59 AM
Nice idea, but I guess it has been tried already several times.

The questions that come to my mind currently are:

.) How will the users pay you and how much will it cost you to process those payments?

.) Have you already calculated whether this project is worth the money? How much do you pay for your server?

.) What do you do in case of downtimes? Refund money?

.) Will your domain be a short one that is easy to remember and to jot down in a hurry without asking 5 times whether the last character was a 'b' or a 'p' ? ;)

.) What if 90% of your customers sign up and quit your service after 2 months ? Are they bound to a contract for a year?

.) How secure are your spam filters? Will you filter out virii like the 'i send this file in order to get your advice'-one?


Greetings,
Jurkovic Mario

besimple
11-26-2001, 08:12 AM
Originally posted by Duchz

[QUOTE]Nice idea, but I guess it has been tried already several times.Thanks but where, i can't seem to find any of these places....or either coz they're too much like Everyone.net
How will the users pay you and how much will it cost you to process those payments?Payments will be taken byy cc's and dc's - mean cost for processing is $0.65
Have you already calculated whether this project is worth the money? How much do you pay for your server?I think i have accounted every expense and possibility.


continued below..........:(

besimple
11-26-2001, 08:16 AM
What do you do in case of downtimes? Refund money?Hopefully if ever there are any downtimes, they shan't be that long......no refunds :)
Will your domain be a short one that is easy to remember and to jot down in a hurry without asking 5 times whether the last character was a 'b' or a 'p' ? ;)Umm i thought of using 'esnots.com' or 'epeas.com' but thats not final :) - have done a few small surveys and people tend to like 'esnots.com' - most say too memorable.
What if 90% of your customers sign up and quit your service after 2 months ? Are they bound to a contract for a year?Umm, yes....

having trouble will c

Uneek
11-26-2001, 11:09 AM
Keep in mind, if theres free email, the user will most likely go with the "free" They also receive an email with no ads, no junk from there ISP. I myself would never pay for email. I even use BigMailBox.com for all my domain names. :) :angel:

Jack
11-26-2001, 11:29 AM
$3/year sounds like it would be too difficult to generate revenues off of. Many customers will be unwilling to pull out their credit card and will wonder why your price is so low (thinking it can't be good if it is so low). If you charged something around $17/year or $19.95/year, you'd likely make much more. This also gives you much more room with affiliate commissions. You could launch a 40%+ affiliate program and attract quite a few affiliates. As an affiliate, I wouldn't promote your program under your current structure of only $1 for a credit card purchase. Just make sure you test multiple price points if you launch this project.

freew
11-26-2001, 12:33 PM
I don't think response will be all that great. I for one use popular free email services and never receive any spam in my box. I do have any account at hotmail that I provide to places that require an email address that I am not sure about, so if they spam it doesn't go to my regular account.

besimple
11-26-2001, 02:01 PM
Well your very much right about only $3 and if will will take it seriously or not.........thats is one of my owrries but once people are signingup, i'll rely on word of mouth very mcuh to build a brand.


This is how i think of the $3 and how i'll make a profit. Right now i have a website with 756 free email members, i have adz, popups, links and allsorts yet i have not even made $5 from them over a period of several months.

Yet if they were all paying customer........there'd be no needs for adz of anysort and i'd have had made $1020.60 in revenues from them.........now even if i have a dedi server for this service, I'd still be making a hefti profit yet what i'm thinking about is using a Virtual. Somehting like a big Virtual. Where you have the freedom to expand one day......


So thats how i think i have a solid plan, i can also pay absoluetly on time, no excuses or worries as i'm the only person who people have to deal with, no third parties and its not that i have to chase anyone for the money, i'll have it and all i'll need to do is send it out :)

Besimple :D

Koj-Gysto
11-26-2001, 04:19 PM
I think you should charge some more and offer the members their own domain name for their email address... I doubt you'll be able to get paying members if you don't...

Edwin
11-26-2001, 06:32 PM
I see a number of flaws (big and small) with your proposal...

A) Your costs don't add up. If you have a dedicated server, it's going to cost you $200-300 a month for anything like a reasonable setup with good speed and reliability - and people will expect nothing less from a PAID service! So immediately you need to have around 1,200 paying members just to pay for your server if you're charging $3 a year.

B) Your conversion factor from free to fee is WAY off! I have 28,500 users of my free @EmailAccount.com cobranded Everyone.net service, and of those 28,500 users, only NINE (that's 9!) have paid to get a much larger mailbox and remove all the ads. So out of your 756 users you might get 10 users to pay, if you're VERY lucky and your user base is loyal.

C) From the outline of the service which you posted in your various messages, it doesn't sound "professional" enough to charge people. I'm sorry to say this, but that's just how your proposed service comes across to me. There is an ocean of difference between offering people something for free and charging people for something. One can be seen as a hobby, the other is very definitely a business proposal. If you go for a for-fee service, you have to have reliability standards, and pay accordingly for reliable hosting.

D) A different solution to your problem might be to ask your users to make an Amazon.com Honor payment if they like using your free email service. I guarantee you won't get many people paying - but you might get just as many as would choose to pay $3-5 a year for their email (yet without needing to change anything in the service you offer!)

E) It's also worth remembering that even in these recessionary times, there are still many, many hundreds of companies offering free email services, most with a feature list that beats Hotmail's handily. So to warrant charging for it, your service must be truly exceptional!

Good luck, whatever you end up doing.

Edwin
11-26-2001, 06:36 PM
I have to add before I forget that you'd have to pay a LOT more than $1 a signup to get me to promote your service. I can get $0.25 for sending people to a FREE provider and $10 or more getting people to sign up for paid email services.

ceo
11-27-2001, 01:56 PM
with Edwin on that one Besimple....
There simply is no proper business logic in running an uninterrupted operation such as this requires without having the experience, with your only rev. being 3$ per member.
Also your assumptoins are too optimistic.

Edwins got 9 of 28,500 approx users shell out some cash.
I'm worse, ONE-1 of my 8500 users have upgraded LOL !


Actually to be frank I was thinking of a similar service albeit ad sponsored & free to the customer. Incase you want to discuss it, feel free to email me....

Edwin
11-27-2001, 07:48 PM
I don't have anything concrete *yet*, but I am trying to find an email solution that will boost my conversion rate quite a bit. It's still going to be VERY low, but hopefully no longer off-the-scale low. I have several leads I'm actively pursuing (nothing I can disclose right now...) so it's only a matter of time.

I'm going on the assumption that there must be SOME way to get SOME people to pull their credit cards out for email. Sending 5,000 people to find one trigger-happy credit card holder is NOT the right way though :)