When something costs nothing, you’ll get a lot more people to try it than if you charge up front. That’s the idea behind freebies, on the web and otherwise. Free lowers a barrier to entry.

Consider this:

1. Shopify had a service that allowed anyone to create an online store for nothing up front. Shopify only got paid when the seller was paid.
2. Then they up and added a monthly fee.

Portland Web Innovators has a discussion of the changes. Poor communication from Shopify seems to be the biggest culprit here, but the long-term damage may come in the giant barrier they constructed in front of prospective customers.

I think we’ll see a free version back soon, with premium features available for a monthly fee. The “Freemium Business Model” is powerful because it harnesses the simplicity of free and adds on important bits for those who get the most benefit from your product.

The model allows new customers to hold off on paying until they know it’s worth it. Money now may be better than money later, but any time you ask for money, a big chunk of folks leave.

A Portland company that plays the freemium game well is SurveyMonkey. Their price list shows a good free service with room to move up.

Throughout their site SurveyMonkey reminds the free users of features they could have. It’s like a shareware registration nag, but less intrusive.

Those who are in it for the free stuff keep on taking, but who will they go to when they need more than 100 respondents or want to redirect to their own site upon completion? Most of them will choose SurveyMonkey, because they’re already familiar with what it can do.

Shopify may go for the harder business model. Maybe it will do better, but I doubt it. Free is very easy, and on the web simplicity–and its low barrier–rules.

Online maps have given time estimates along with directions for a long while. Those times were always based on speed limits of the roadway and a whole lot of machine optimism.

Google Maps took a step toward a better time estimate last week when they added rush hour driving times to directions.

The Oakland to San Francisco example seems accurate: 19 minutes versus 1 hour with traffic.

The system doesn’t seem to be as in-tune with places outside the Bay Area. I have a friend who would love to have only five additional minutes to get between Sherwood and Portland. And it’s a long haul from Washington’s capital up to Seattle. Traffic adds more than a quarter hour.

My point isn’t to belittle the innovation. I think it’s a big step. Too long have we ignored the time portion of driving directions.

Really, how long a drive takes is usually more important than the number of miles. While Google’s latest addition is still too optimistic most places, it’s probably a sign of better data to come.

Via Krish

What if I told you there’s a company looking to help you sell your old technology. It’s called eBay, right?

Second Rotation has thrown themselves in as a middleman between your gadgets and the world’s largest marketplace.

When people consider spending money, they like to have the answer to the question how much will it cost? Similarly, I think the same holds true when they’re selling. Sure, we could post something up on eBay and maybe get a little more, but why not just go for the known deal?

Some might balk at trading their Video iPod for $111. The average price on eBay isn’t much better, and Second Rotation gives you a guarantee (assuming the quality matches your description). Plus, you don’t have to list it or wait seven days for the auction to end and hope there’s at least one bid.

Yes, it’s not for everyone, but I’m impressed with how Second Rotation saw a business opportunity in making something easier on the seller. They assume all the risk and uncertainty for the seller, while knowing they should be able to get their money back and then some.