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What do you think of this product and business model

Put morals and irritating '80's internet style techniques aside for a moment...

BounceExchange.com tracks a visitors mouse cursor and when it looks like they are going to the close button (i.e. are about to bounce) then it shows a lightbox with some offer/signup/discount etc as a last ditch attempt to get them to stay.

Obviously not perfect (good luck getting ALT+F4 or working or on tablets) but it sounds like it could be implemented in a few lines of jQuery - http://stackoverflow.com/questions/16025343

Then I noticed the prices - $5000 per MONTH! Now it looks like they are justifying this because they include a lot of consulting ('full service management') rather than the self service typical of SaaS.

They don't have a lot of users  - 80 ish from http://trends.builtwith.com/ads/Bounce-Exchange - but then again they don't need many at $5k a month!

So - is this a trick that most B2B SaaS companies are missing? Take a  simple(ish) service, add some bodies and sell at a huge premium over self services?
Ryan Wheeler Send private email
Thursday, July 18, 2013
 
 
This is an inane question.

It took me a while to parse but you're asking us to bloviate about some random business.

I like to help people by offering hopefully useful opinions about *their* business.

BounceExchange is not your business so you're asking for the equivalent of empty water-cooler chatter where we exchange opinions on things that don't matter.

I do hope that this forum won't descent into that.
Krzysztof Kowalczyk Send private email
Thursday, July 18, 2013
 
 
Whoa there Krzysztof - I think that is a bit un-necessary!

The question was :-

"is this a trick that most B2B SaaS companies are missing? Take a  simple(ish) service, add some bodies and sell at a huge premium over self services?"

I.e. Can WE improve OUR businesses by adopting a similar model?

Isn't that EXACTLY what this forum is about? Certainly more relevant than job interview advice!
Ryan Wheeler Send private email
Thursday, July 18, 2013
 
 
As you said, it's not 100% reliable at all... for instance, I close my Firefox tabs by middle-clicking the tab somewhere, and not the close button itself.

I think it's a crappy business model because as a browser I find it annoying and pushy, like a pushy sales clerk. I wouldn't use it to sell my products because if you have to resort to "tricks" like that, and the app can sell itself, then your app is crap.
PSB136 Send private email
Thursday, July 18, 2013
 
 
*can't sell itself
PSB136 Send private email
Thursday, July 18, 2013
 
 
Just to make it abundantly clear to K before he goes off on one again :-

"Are Businesses prepared to pay drastically more for products if they have a bundled human service?"
Ryan Wheeler Send private email
Thursday, July 18, 2013
 
 
If they believe the human service has value then doubtlessly yes. Consulting with in-house tools is regularly charged at $thousands per day.

The example given is an odd one. I don't really understand the value the consulting is giving in this case. A more normal example might be seo companies who use some secret sauce tools....

1) Buy our tool... $300
2) Rent our time using our tool on your site $500 per month

... so yes, some people just don't want the hassle of doing it themselves or even to take the time to understand the problem properly.

I think it probably is a very profitable model but it's also not something I'd want to do - when you're in the time and materials game either you're personally working for someone else and hoping for more work month after month or you've scaled and are managing others until you can remove yourself from the loop. None of that sounds fun to me.
Jonathan Matthews Send private email
Thursday, July 18, 2013
 
 
Doesn't work for CMD + W so I don't think its *that* useful.

On another note, "Bloviate" (used above) is most definitely my word of the day.
Gerard Kelly Send private email
Thursday, July 18, 2013
 
 
How many general internet user ever press Ctrl+W to close a window? I'd guess we're looking at a tiny fraction of .01% This product appears to be targeting successful online businesses with more marketing budget than sense.

I'm sure this method probably does convert a few more customers, simply because coupons and discounts are a proven method of generating additional sales.
Andrew Gibson Send private email
Thursday, July 18, 2013
 
 
They don't seem to be using it on their own site, which tells you something.

Regarding the base question, yes, adding consultation or other forms of value is  very good idea.

I've helped clients turn a $29 ebook into a $199 video set - same content. People will pay extra for all sorts of things but hand-holding is always popular and perceived as valuable - because it is!

The downside is that people don't scale. They DO need holidays, sick time and so on.

My general view is that the internet and software both offer hands-off, 24 hour scalability. Why ruin that by putting messy, lazy, inconsistent people in the mix?




AC
Reluctantlyregistered Send private email
Thursday, July 18, 2013
 
 
To the OP, if you can work it out where you are licensing some script and support of it for $5000 a month to 80 customers, that sounds like a pretty great business model.

As far as the product, that sort of function is annoying, but that seems to be a different issue really.
Scott Send private email
Thursday, July 18, 2013
 
 
"they don't need many at $5k a month"
The beauty of doing business online is that a conversion rate of 0.000001% can be profitable.  I don't know how many competitors there are for such a service, and their primary market is online merchants who already use marketing techniques tailored to customers who willingly submit themselves to this type of abuse.  Before everyone rushes out to clone Bounce Exchange, consider that they may have maxed out this niche, and the second, third and fifty-third entrants will be far less profitable.

"Take a  simple(ish) service, add some bodies and sell at a huge premium over self services"
Obviously self-service isn't cutting it for their customers.  They are paying for non-obvious services.  It could be assurance that this service actually works, for a client without the ability to either develop their own version, or contract out development.  It could be a sense of implied exclusivity (surely the client's competitors wouldn't spend that much money for this type of service).  The actual programming service is only a small part of the whole package.

What you consider a simple service isn't what Bounce Exchange is actually selling for $5000/month.
Howard Ness Send private email
Thursday, July 18, 2013
 
 
> So - is this a trick that most B2B SaaS companies are missing?

Can't speak for most SaaS.

Those guys though claim they serve huge e-commerce sites. Those sites are performance-sensitive, i.e. the solution must not slow the site down (as all of them already know $$$ loss number per 1s of delay). I'm sure the out-of-the box solution doesn't work, and every site needs tweaks, tuning, monitoring etc etc etc. Hence the consulting.

At $5000/mo they could actually be in red for a few first month if the contractor has to be on client site full time.

...

I believe a better version of the same functionality is the tracking ads, where after I looked at an item on a store and left not buying, the store's ads with coupon to the very same item are shown to me on other sites. Functionally it is the same -- a user who would not buy gets an better offer, but it is less annoying and can take much longer time (ads can run for a month after leaving the page).
Vladimir Dyuzhev Send private email
Thursday, July 18, 2013
 
 
Privacy and tracking is a legal consideration, too.  You can't just monitor a person's actions remotely like that and get away with it, especially if they're unaware of it and didn't consent.
PSB136 Send private email
Friday, July 19, 2013
 
 
"Are Businesses prepared to pay drastically more for products if they have a bundled human service?"

Yes
nilesh Send private email
Friday, July 19, 2013
 
 

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