Freemium business model
It's funny how much a startup's business model can change over time. When we started OtherInbox, I really wanted to give away a free domain name with every signup, even though it costs us about $7 each in bulk. Most of the venture capitalists and advisers I talked to laughed at me (literally), but I was confident that our long term vision of creating a win-win for consumers AND marketers would be profitable enough to cover the expense.
The first 100 beta testers who signed up for OtherInbox each got a free domain (and are still using them). I still think that in a few years this could be a viable option for us - other companies such as America Online, Register.com and Microsoft have given away free domain names as part of a promotion to acquire new customers.
At our TechCrunch50 launch, we switched to using yourname.otherinbox.com or yourname.oib.com so that each user doesn't need his or her own domain name. Anyone can add a custom domain from Settings->Domains but we don't pay for it anymore. This allowed us to take on users more quickly without raising millions of dollars to spend on domain names. We always planned on adding a "premium" version of the service with extra storage space, security features, and other premium features.
Soon we'll be implementing a freemium model that includes a free service as well as a premium version that costs $19.99 per year. The main difference between the free and the premium service is that the free service only displays messages received in the past 30 days. If you're just using OtherInbox occasionally, this might be good enough for what you need. For most users, we hope that they will want to be able to view all of their messages and will be happy to pay the nominal $19.99 annual service charge - less than two dollars a month.
Don't worry - as always we will take good care of our beta testers. You'll all receive a three month complimentary upgrade to the premium subscription so that you can take your time to decide which version is best for you without any change in your service. If you know that you want to upgrade anyway and do so within the first 7 days before April 15, we'll give you 50% off for being a beta tester. On top of that, we'll still give you the 3 month complimentary subscription for a total of 15 months for $9.99!
We really need your feedback! Please comment and let us know how you feel about these changes and whether or not you plan on upgrading your account right away or waiting to make a decision until towards the end of the three month complimentary upgrade.
